New-York tribune., 1877-11-08
RAILROAD REORGANIZATION.
RECONSTRUCTING JERSEY CENTRAL.
DETAILS OF THE SCHEME FOR THE FORMATION OF

DETAILS OF THE SCHEME FOR THE FORMATION OF A
NEW COMPANY.
The proposed agreement for the reOrganiza-
tion OF the NewJersey Central Railroad Company has
been submitted by the bond and stockholders committee
to the Board OF Directors Of the company Several con-
ferences between the committee and the directors have
been held Some changes it is stated, may yet be made
IN the agreement but II Is believed that it will be adopt
ed by the directors substantially in its present FORM
Tho scheme provides FOR purchasing committee con-
ssting of Robert Lenox Kennedy John Edgar Johnson
John s. Kennedy. and Theodore Dreer, Of NcwYork,
and Edwin M Lewis, Of Philadelphia. who shall act on
behalf OF the holders of the bonds, stocks. obligations
and Indebtedness OF the company who shall sign the
agreement The committee is authorized to purchase
the Railways OF the company, and all its fran-
chises and property under either the blanket
mortgage, dated September /, 1876, the
consolidated mortgage Of September l, 1874 ;
or II the committee shall at any time hereafter deem it
possible ana expeden under existing laws or laws here
after enacted, to eecualy carry out the plan proposed
IN all Its essential features, without foreclosure or SALE
the organization OF new company, they shall have
power to do so or they nay organize corporation
to be called "The New-Jersey Central Railroad
Company" The conveyance to the new COM
pany shall shall be made upon the conditions
that 1t shall assume tho payment Of the
principal and interest OF the S5,000O00 per cent
first mortgage bonds. due February l. 1890 II the Con-
urtage FOR Sj 600 600 Is nor forerosed the
company shall assume the payment OF S20,000000
OF these bonds and the interest acr January l. 1873
This amount includes any convertible bonds that may
he outstanding any bonds OF The Newark and New
York Railroad which were secured by the consolidated
mortgage. In case however that the consolidated
mortgage sLall bo foIecosed, the new company
shall execute to trustee 10 be selected, mortgage COW
cring all its property and franchises security for the
payment Of the principal and interest OF S25OOOOOO OF
the bonds Of the new company do be issued THIS mort
old 0OO0 600 list mortgage, and tine bonds secured by
it shall be payable January 1919. with seven per cent
interest payable semiannually from January l. 1879;
% amount
Gel the first mortgage.
The new scheme also stipuates that the new company
may the lease OF the Lchigh and -usquehanna
Railroad made by the Lehgn Coal and Navigation Com
pany with the old Central NeW-Jersey and also the
payment OF the principal and interest Of the T23lOOOO
per gold bonds OF the Lehigh Coal and Nayiga-
tOn Company, due 1897 1t may also assume the agree
ment with the Delaware and Bound Brook. the Long
Branch, and other railroads. The new com
pany may issue not 600 stock Of which not
more than l4,OOO,OOO shall be preferred stock The
preferred stock shall he entitled to all the earnings not
also receives a dividend Of per cent after
which any surplus shall be divided pro rata be-
No mortgage other lien shall be created without
tic consent Of the preferred stockhouefs VINO aone
shall be entitled 10 vote Tor uiccols etc, until me to
mon stock shalt have earned al eight per cent dividend
The consolidated mortgage bondholders are rtquir d
to exchange their coupons i0r preferred STOCKS
at par; or il the consolidated mortgage "a
foreclosed, the committee may use these bonds
in the purchase OF the road ana the Oondhoders snail
subsequently receive the bonds OF the new company at
par, in exchange for Their Ola bonds. Inc socknouGrs
the old company shall surrender their stock TO the
committee and at the same time pay an assessment OF
dollars assist lht out
irs plans, i'm lieu of which they shall subsequently
receive the preferred stock OF the new company for an
amount equal to 10 cent OF the old stock ana the
total assessments for th remaining 30 per cent of the
old stock they shall accept the common stock OF the new
company at par. .
Provision Is made for the payment Of loans male to
the Central aud the Lehigh ami NIlkesbarre Coal Com
pauv, amounting to Si52O.0OO, secured by the
hypothecation of SS $4,000 Central and Lehign
and Wilkcsbarre bonds; also for the reorg IL
iZation Of the LehIg and Wilkesbarre Coal Company,
the American Dock Improvement Company, and for
dealing with tboso who fail TO sign the agreement ana
comply with its terms Unless the holders o. c0nsoll
dated mortgage bonds TO the extent OF at least SOOO
OOU shall subscribe TO this agreement aud deposit ther
coupons three months from the date OF the agree
ment the subscribers shall have the privilege OF With
drawing their coupons from the commit ee ana he com
mttee shall also repay to any subscribing htocAhuders
who have paid the sums herein required upon ther
stock the paid by them respectively, and snail
redeiyer TO them their respective stock and tins agree
ment shall there fer 20 be binding and all parties
thereto shall discharged from any Obligation thereon