The Carbon advocate. [volume] (Lehighton, Pa.) 1872-1924, 1878-03-02
Reorganization PlHnned--The Cen
trnI Ikts of N, u


A joint committee representing the con-
soldated bondholders of the Central Rail-
road of New Jersey, the consolidated bond
holders of the Lchigh and WilEesbarrc Coal
Company, and the secured creditors and the
stockholders ofthe Central Railroad of New
Jersey have submitted plan for the rcor-
ganizatlon of that road. 1t provides that
the holders Of the consolidated and convert-
bic bonds shall cancel their cou pons for two
and half years, receiving n new twenty
fve-year seven per cent, mortgage bond,
the mortgage to form a second lien on GER
tain property of the company. The guar
antee of the Central of New Jere ey of Sll.-
100000 of the bonds of the .Lehigh and
Wlkesbarre Coal Company is also to be con-
celled, the said company to issue ten year
bonds at six or seven per cent, for the
amount of the coupons cancelled. The
holders ofthe American Dock and Improve
mcnt bonds are not to prosecute IT, c Central
Railroad of New Jersey before July ], 1883,
provided a deposit of $1,000 of the com
pany's bonds is made prior to May l, 1878,
to secure the payment of any interest due
July /, 1888. Stockholders are to be asst 'ssed
ten per cent, on their holdings, receiving
mortgage bonds for the amount paid in, and
are to surrender one tenth oftheir stock in re-
turn for income bonds The amount to be
thus raised IS S2,O3G, 500, but if by April 10,
1878, Sl,020OO0 shall have been rails ed,
the agreement shall take effect on that da tc,
and the issues Of bonds provided for sh al
be made.
The statement Of the condition of the
road shows that 1922, $40 is to be paid out
o. tic income. The total net earnings oftlle
road, with its branches and leased lines,
for the year ending Dec. 81, 1877, were $2,-
4S4, ,46 from which is to be deducted the
rental of the Lehigh and Susquehanna
division, $G4G,j1l.3l, leaving an actual net
income of l,S3S ,33j,l2.
The plan OF settlement relieves the road
from the paymentOl interest on consolidated
and convertible bonds for two and half
years, at $l,3jS,OOO, and the interest on
American Dock and Improvement bonds
two and half years, at$2l0O0O per annum
total relief amounting to So, 020 600. To
pay of the secured debt of $4,50O,0O0, $4,- |
997,2j0 will be required.
Under the plan there is to be paid
annual interest as first stated -. SG22,94S |
Init upon $j,jO0000 new mort
gage bonds ........................... 0oo,UUu |
interest upon S2,0UU,UUU new IN
come bonds...........:. ............. III, 300 |
The annual interest account dur
ing q years is,..".............Sl,l ,lT9,44S |
The animal net income is......... ,SjS,335 |
Leaving balance of net income $G5S,SS7
Making in 2ly years abalancc appii-
cable to payment of debt of $l647,2l7 |
Amount to bc received from stock
Holders under plan. n.."............ 2,O3G,SO0
Total to DO received on basis of
1877 for y years rs.............:!."SS, ,GS4,0 ,0l7
Leaving balance of Sl,Sl3.2S2
to pay the secured debt and
Interest,". S07,2 ,2jO
The supplementary report, after explain
ing the dizziness of the coal trade in 1877,
forecasts the prospects of the road in the
event of a revival of business, and sets down
the probable net income of the company at
$3,G3S, ,S35, which, after the payment Of in
tercst, should leave an annual surplus of
81 ,0g7,SST. This surplus would give q
dividend on the stock treduced under the
plan to 81 1881 200 of nearly six per cent.
For every 500 paid in cash and every 800
Of stock surrendered stockholders are to re-
ceve 500 of the new mortgage bonds and
500 Of new income bonds.
The report says that the company will
doubtless continue in the hands of the re-
ceiver until the 81 500 900 of debt shall have
been paid, which will probably be in 1850.