The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-06-26
RAILROAD TROUBLES.

PLANS OF EoRGANIzING THE SOUTHERN RAIL
ROAD OF LONG IsLAND-THE SECOND AHr
THIRD MoarGaoEs TO BE FoREcLosED.
meeting OF the holders OF sinking fund bonds
of the south side Railroad of Long Island and OF
tho mortgage bondholders OF ths Southern Railroad
OF Long Island held yesterday at No. 141 Broad
way hear the report OF the committee appointed
previous nesting for the purpose OF setting forth
the condition OF tho road and OF determ n ne
plan Of reconstruction. Mr. D. ID. Lord occupied the
chair and William T. Black acted secretary. The
committee, which consisted Of Major d. ID.
Lord, j.. d. Jones, and Thomas b. Asten.
of the South Side Railroad sinking fund bondholders
and T.. Il. Fabr. Charles Fox and r. b. Hinsdaic, OF
tho mortgage bondhoders OF the Southern Railroad,
reported that the trustees had been asked whether
they ready TO purchase the road Tor the bond
holders they had authority 10 do under their arti
cles OF trusleeshp and thcy had refused unless they
thoroughly unidentified The committee state
that the trustees persist IN their refusal tho plan Of
organization will be defeated. They recommend that
tho hrst mortgage Of $3.50 900 remain undsturbed ana
that the sscond ana thrd mortgages DO iorccosea with
both CLASSES that business continued
tho present management, and that the present re-
ccivcr remain 10 control Ninc.eievenths oil the not
rental earnings to tho timc OF sale the committee
propose shall be distributed among The bondnolderu
ana be payable on presentation OF the coupons. Tho
remaining Two are to go to pay the expenses
Attending the foreclosure proceedings. Tho trustees
to unite IN tho transfer OF all property 10 the new
company, which Is to BIO called the Montauk Railway
Company.
There shall be issued by the company SI 100 900
OF first mortgage bonds and $3.50 900 Of extra bonds,
which shall DC 1rst mortgage, covering all additions
contemplated at present ana In tho future. Also
5000. 900 OF stock tho share value OF which shah be
500 each, with the privilege OF increasing tho same
or Of reducing It $45oooo The two classes OF old
bondhoIdcrs entitled either to stocks bonds
In exchange for tho old bonds in tho following proper
Ill the road should stocks and bonds the
owners OF sinking fund bonds, which At present
to ST. 500 0o0 to receive sixty per cent Of
bonds equal to 5000 900. aud forty pcr cent
IN stocks, equal 10 100000 The owners OF third
mortgage bonus, which to $500. 900. arc to
forty per cent OF bonds equal TO 5000 600. and
sixty per cent IN stocks, equal to 100000 no now
receivo sixty per cent In stock, and tho third mort
gage bondhoders forty por cent Of the same II less
bonds and stock should DO issued payment viii b
made in che Same proportion
PROPOSED LEASE.
IL Is proposed that the Long Island Railroad Com.
pany shall = lease OF tho Montauk Railway for
forty years. which shall DO divided into ten for
the Grst term and va years for the balance OF tae
time. The Long Island Railroad Company must
guarantee twenty ave per cent Of the gross earnings
Of tho two reads to tho Aontauk Railway Company
tor years. which, 10 expected, will pay seven per
cent interest on Tho stock and bonds Az tho end
oil ten years, ana Of each succeeding ave years. tho
percentage TO be paid must be IN the pro-
portion OF the gross earnings Of tho Monauk Railway
Company 10 Tho gross earnings OF the whole entire
RAILWAY Is to be credited with Ihe gross
receipts received on its hne, except where .
pany. In determining the net earnings tho Long
Island company shall dcduc: only the operating OK.
penses Every six months the president OF the Long
Island Railroad shall furnish . statement OF tho re-
ceipts anu expenses OF both roads. THO Long Island
Railroad must guarantee sufficient rental Tor ten
years the interest the bonds OF both compa-
MES; also to pay all taxes and Insurance on al. ,ts
property up TO tho full value Of the policies approved
OF ny the Montauk Railway Company, all OF which
will be charged to operating expenses The Long
Island Railroad Company must keep the Montauk
road 10 good condition and restore II In this manner
at the expiration OF the lease. No tracks OF the Mon
moved without the consent OF tho president and
majority OF tho trustees ofthe road Tho Long Island
Railroad Company must deposit the lease with The
Montaux Railway Company as collateral security.
continued for the purpose OF completing the de-
tails OF reorganization and empowered 10 mako ar.
rangoments with the trustees OF the old mortgages
for foreclosure and sale o the road Ia the Interest
consent then the committee are authorized to take
to remove them aud substitute others. The
bondhodsrs Will be assessed pro rata for tho fore
closure expenses and they requested TO deposit
their bonds.
THE MoNrcLAIR AND GREENWOOD LAKE.
The committee appointed 10 prepare plan for r..
constructing the Montcair aud Green wood Lake Rail-
way Company have finished their labors. They recon.
mend tho company DO called she Albany AR
Line Railway Company, and that II be extended from
Jersey City 10 Kingston l02 miles. They Will have TO
build tbirtysix miles or mako arrangements with
other lincs They end tho issue OF 81 500 900
OF stock and 81 000 600 OF bonds, and estimate that
$780, 900 cash viii be required Tor tho construction of
the road. In order TO furnish this amount they pro-
20 the Old ondholdors snail pay ten cent,
in cash. on tho par value OF tie bonds they hold aud
receive therefor new stocks and bonds. Tho plan will
remain open for signatures until Augusta.