The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-09-06
RAILROAD MEN BATTLING.
4 STORMY MEErING. WITH TfRIsATs
or IENfTJOTS LITIGdTfON


Holders Of the second mortgage uunds Of
thu Montolair and Greenwood Lake Eailroad
Company Of New Jersey met yesterday afternoon
IN tlir rcnr apartment Of n hrobrr's Office II, 10
Wall street to take action Oh the plan II rcor-
gnnizn;ion prepared hv Joint committee II
first and second mortgage bondholders recent
~ appointed. That plan was In substance IN
follows: First. the huying In 10y Mcssrs Cyrus
W. Field. Abrnm :. Hewitt. and John u. Du-
mont. rs a purchasing committee. vt the prop
oriy of the company NJ the sale 1T 'le 2ith inst.
or whenever It is held in the interest NJ both
cinsscs of hondholdris. unless in their judg
ncrt other parties bid more than fair valn"
for IT, and then thcy will let ii go. this agree
mont will be void. and assessments under II will
be returned. Second. asscssing i've per cent. to
mako such purchase and meet necessary OK
penditurcs on ali bonds payable before Sept.
TO- 1878. aud excluding from any sharc in the
purchase nil bondhodcrs who r"fusc to give
their assent To- this plan and neglect To- pay the
assessment. Third. organization 10y the pur-
chasing committee OF new company with n
capital stock not to exceed 81 900 600 holders Of
first mortgage bonds aud those who acquire the
rights OF holders. 60 receive stock of par value
equal 10 the anount Of principal and interest
duo thereon. the remainder io De- issued 10 pres
ent stockholders nj the rate Of 80 a. the slU0
hold by them. Fourth. the issuing. upon such
organization. ot two Glasses Of bonds--the first
equal to the first mortgage bonds and cash paid
on the ilve per ccntum assessment. payable in
thirty years, bcaring six per cont interest, pay
able scmi-annuay out of the earnings Of the
road II 81 much Is earned net. and not other
wise carrying with them the right To- vote III
person or by proxy and should any not b" voted
upon tn" Board ~ Directors shall b" regarded
az n perpetual proxy To vote ON th"m the SEQ
ond class of bonds. 10 tn" amount 81 sl.sOo.WO.
payable also IN thirty years and hrarlnE SIX
per centum interest, VI enough If l"it ont ~ tho
earnings OF tn" road To puy expenses nnd inter-
est on the preceding first m"rstgr" bonds.
these latter bonds To- be- issu"d To- the present
second mortgage bondhod"fs tn" provision
IL included that ia" second mortgage lrndhuld-
ers may pay of and dischargc the first mort
gage bonds ut any tim" hrlur" maturity. at the
rate Of lnj per cont and interest. or at their op
ton To take an assignment thereof. fiiih. xiv
ing to the Board Of Directors power. hv the writ
ten consent OF "A minority of thc FIRST mortgage
bono holders. 10 lease the road, OF lease other
roads. or consolidate with any other company.
sixth. transferring Ia first murgag" hondhold-
ers who assent To this plHn the rights of all who
do not. Seventh. IN like manner wping out non,
asserting second mortgage hondhoders. and
providing that their rights shall inure To- such
persons - the purchasing committee ahall des-
portant to the public.
-. MIR; mymopI moved that Mr.. sheldon take
mond take the chair Tn" latter motion pre-
vailed. Mr.. Baker was appointed Secretary
Mr. Raymond stated thu object of the meeting
and endorsed the plan rs the best result OF the
Committees wisdom and purpose To- deal Justly
by both the first and second mortgage bond
Dr. A. b. Elliott moved that ths plan be taken
up section 10y section To which Mr.. lsuymund
enormously objected. urging that II had 10 be
ndopted or rejected ~ a whole; that the second
mortgage bondhodcr- alone could not pick II
o. pieces and RECONSTRUCT II. DIR. Elliott claimed
that the bondholt"r- had right To Object To
evil features IN th" proposed pan and they
could only reach them rs he nad proposed.
Upon Mr. McDow"ll'S motion the plan was
formally received. and then the question being
lis adoption. he addressed the meeting He
deemed the plan was n good one putting the
second mortgage hondholirrs IN n much better
position than they were hefor" III" foreclosure.
He liked the cutting down Of the interest and
the masking II dependent upon the earnings Of
the road. He also approved of the reduction IN
The assessment called Tor from 60 per centGm
down 10 ,. But he could not approve OF the
clause giving the right to the Board OF Direct
ors 10 vote by implied proxy for unreprrscntcd
hondholders. ana he read letter from Niles
higgln9tnam. second mortgage hondholder.
pf Oneldn County. \. y. strrnuously directing
on the same ground.
was being read, asked who lligginbOtham was
anyway hoy much stock h h odd o.o,
10000 for his children and sij 900 for his Gus
Mr. Field objected to anybody voting here on
she acceptance Of this plan, except On the actual
amount Oi bonds he owned himself.
DR.. Elliott rotorgd TINT II he, instead 81 buy
low AZ Mr.. Field had his some Of which he had
bought IN rs low Us three per crnt-his amount
Woulu nt flbt,NNl. he ullfEffl tllul cbhN.NW pI
the amount raised on the construction bonds
had been squandcrcd. and DENOUNCED the pres
ent plan as II schcm" To max" the holders Il
first mortgage bonds perpetual diciators and
controllers OF the company. second moitgug"
bpndholdcrs. hc warmed them. who nsS"nt"d To-
this cunning!y devise scheme might ~ well
bid farewell forever To their bonds. He objected
sessmcnts and e. tie clause giving the Board II
Directors power tu' trnnslrr the rights Of dis
dissenting bondhol,i"rS ~ they pleased.
Mr.. Field said he would be- " lling 10 give his
d. TO rn.. Ia Int
for them
Mr.. Elliott could not see that his willingness
In that direction gave him the right To- control.
with bonds bought ut 81. 30. and even rs low as
Jpsr cent. III" property bought y others nj par.
Mr. Raymond again Insisted lhat The report
a large holder Of second mortgage bonds him
sell defended the plan.
mortgage bonds and he would deem them all
lost if this plan wis rejected. They would hay,
& e take this co.npr9mise y &c. n9thins ot nlli
mortgage bonds at three per cent. but would
not sci his own for2h.
will never see them again. These mon who are
engineering this scheme propose Ia maxi them
selves perpetual "ligurriiy. and 10 swallow up
on foot to buy in the road.
pr. Ellioit-Ih nat II not % p,rtin ut question.
Mr.. MrDowcll moved the adoption Of the plan
az whole.
Mr.. Slarr-lIayc you ROT n dollar interest In
Mr.. McDowell-G shouldn't be- here II / hadn't.
Mr.. START very much doubt II.
The Secretary rrcnr ted tho votes ON the adOu-
tion Of the plan rs follows;
cyrus " fird. ON sl5l .iUD bonds ID, own. Ave. 4
Elliott SaptI HI, uW ami s4iutl hN rruNN. Nu i T.
Jnyn, dor Mary l.. Nhltnnf,hI. si'rs' so. starr.
Fipn. ms own ami SAItf" 10y Proxy. ave. g., lr.r "
Smith Slopt his uW, 40 O. & BnA'r SOMA iu. f.tirss
their own Afri j. WAGNER, slpli hl. own Ayn " Is
Leonard. $1,000. li. own. and sluuN1 ht prnNN Ave.
9. SHELDON, s.tloft his oN H. AMI .is.Fr hN PROXY.
Ave, L. T. j,nnnss. .'An BOO, own. Atr. e. campbell.
500 his own, Az, iitW'sNN eruiur, s.it'" Ave-
. Mcdowell Slnppl. ms own, Ay,, v. ]. Raymond.
sls,Tp, his own. AA'.
The count showing the Affirmative vote WINS
announced n9 s3}j 400 the negative at first m
accurately ~ slO0Uu bat aitcrward corrected
10 Sii uOu So IT," I,lnn WIS adopted.
Or. Elliott offered Il resolution. which he asked
t. have road.
Mr. Field moved 10 adjourn and asked some
body 10 500 pni Inn M once. INT nuiutly did.
Mr. NJ Dowell wished Ia have McssIs. Ray
mund ana J. tsc ad.l"i o. ihr Purchasing Com
mli'". Mr. iYnOnd otl'rtod. saying the Com
mitl"e ~ already organized was composed Of
lnnorahl" mru-
Dr. Elliott
Mr. Campbell wanted the time for paying as
6r-~mrnt, tNfrUlirl
Mr. Flr!d r'torird that if man hadn't the
money 80 lHy Lis u~,',~mrut and could not
ralec II ia ily" days he could mo-, in five years