Ashtabula telegraph. (Ashtabula, Ohio) 1874-1880, 1878-06-07
Abstract of Agreement.

hecltes the incorporation OF the A, L.
& P. r. R. Co. and its being the owner Of a
constructed line Of rail road, and that in
the purchase of right of way, construction
and equipment of its rail road said COM
pany became indebted as follows. now out
standing:
First, 81, 500, 900 of first mortgage bonds
dated Oct. End, 1871, at &c IN gold.
Second, $500, 600 of second mortgage or
registered income bonds, dated July LIST,
1874.
Third, unsecured floating debt to about
$1S7, 200.
That there is stock outstanding in the
hands of bonafide holders as follows:
First. common stock 81, ,496, 800; second,
preferred stock, $348, 200; and that the
company has made default in payment of
the annual contribution to the sinking
fund provided in first mortgage bonds
since 1872, and likewise in the payment of
the interest thereon, and that the company
Is without sufficient funds to pay its in
debtedness as aforesaid and it is believed
to be for the interest of all classes of cred
itOrs and stockholders that there should
be reorganization of said A, Y. & P. R.
R. Co. under judicial proceedings and by
an adjustment and capitalization Of the
debt and stock of said company under the
laws of Ohio.
Now in consideration of the premises we,
the undersigned, creditors and stockhold-
ers of said company and constituting at
least two thirds in interest of each, do
agree to adopt the following plan of reor-
ganization.
First, sale of said cOmpany's franchis-
es under the first mortgage bonds.
Second, the same shall be bought in for
benefit of the parties hereto, and as herein
fixed.
Third, constitutes John n. Hutchinson,
VIM. NJ. Spackman and ]. n. DuBarry, of
Philadelphia, and VIM. S. BiSsell and
VIM. Mullins, of Pittsburgh, the agents,
trustees and attorneys in fact to at
tend the sale and purchase the property
and to effect a reorganization of said com
pany, and to transfer to said company
when reorganized, said property, on an ex-
change of securities and stock, as herein
provided; and no party hereto to be bound
unless the owners of 81, 300, 900 at least of
first mortgage bonds shall have signed this
agreement and deposited the bonds as here
in provided for.
Fourth, the company when rSorganizsd
shall be authorized to issue first capital
stock, common 81, ,OOO, 900, or 20, 900 shares
at $50 each. Second capital stock pre-
ferrsd 100000. This preferred stock to
be entitled to receive . dividend not Gx-
ceedins six per cent. per annum, before a
dividend on common. Third, bonds to the
amount of 81, 500, 600 and to be first lean
on the road, and there is also provision
for sinking fund. The bonds to bear six
per cent. interest in currency. The COM
mon and preferred stock to be issued, and
the bonds applied as follows: 1st, the holder
of each $1,000 first mortgage bond shall
receive a new bond for $1,000 and two
shares of preferred stock, and this to be in
full of arrearages of interest also to Aug.
1st, 1873; and also four shares of common !
stock. Second, the second mortgage bond |
holders, being the Penn. Co., and who also |
hold the principal part Of the floating debt;
$3.50, 900 Of the preferred stock. And all the |
net earnings of the company to Aug. 1st,
1873, except the payment of Indebtedness
not funded, and the expenses of reorgani-
zation, shall be accounted for to the treas
urer of the new company. Third, the own
er and holder of two shares Of the present |
preferred stock shall receive one share of
common stock of the new company; and
fourth, the holder of three shares of COM
mon stock shall have one in new company.
This agreement is dated May 18th, 1878,
and is to be signed by the bondholders,
creditors and holders and owners of COM
mon and preferred stock. This reorgani-
zation will relieve all stockholders from Ii
ability under Ohio laws, of which liability
there is now about $65O,OOO. The Penn.
Co. agree to lease the road Of new compa-
nv, under a more favorable lease for the
company, in matter of rent of equipments.
And the stockholders also save, in fact, all
the stock they get in the new company, as
under. sale, all the present stock would
be wiped out.