The New York herald., 1878-02-26
NEW JERSEY CENTRAL.

NEW JERSEY CENTRAL.
PLAN TO REoRGANIzE THE coMPANY-srocK
DITroN OF THE ROAD.
The JOINT committee representing the different in
terests concerned in the reorganization OF the New
Jersey Central Railroad have united on plan. Tho
holders OF tho consolidated convertible bonds
10 surrender Tor CANCELLATION two and half years. In
terest including past due coupons and accept in ex
change new seven por cent twenty five year mort
gage bond OF not TO exceed So 55O, 900, Sc
cured by real estate valued at $4,000 099 $61l6,00O
Lehgh and Wilkesbarre bonds So 600, 900 stock OF
same company; lease and stock OF Long Branch
Railroad. cost $2,2l2,9sS; lease and stock
OF High Bridge Railroad, cost $685.. .5s2; Tease
and stock of Longwood Valley Railroad. cost
$3l7, 75l; s3,OO0,000 stock Of American Dock
and Improvement Company, aud lease and
equipment Of the New Jersey Central road valued at
$1,000, 600. The mortgage shall be made second
lion the properly of the company now covered by
the consolidated mortgage. This property s subject
besides 10 the American Dock and Improvement Com.
panys mortgage oil oOO oO0 the Lshgh and Wilkes
barre Companys mortgage and certain rentals stated
1t is further security for the principal and In
terest OF tho consolidated and convertible bonds Al
ter July, 1884, sinking fund of 500 900 per annum IL
TO be created to retire the funded interest bends
Onethrd OF the directors to DO named by consoli-
dated and convertible bond holders until a SIX per
cent dividend has been paid on the stock the re-
cever may declare the agreement binding the 18th
OF April next though all the consolidated and con-
vertible bond holders may not have signed 1t.
rHE BLANKET MoRrGA0E
To secure about $4,500.000 o. floating debt, the
agreement states there 81, 3OO,o 900 Of blanket
nth tpclu nd
ing So l16 900 OF Lehgh and Wilkesbarre consolidated
bonds. The cancellation OF this mortgage is contem-
plated by the plan.
The individual holders of the $j,3S4 900 Of the
SILL 500 O0O OF the Leh,gh aud Wnkesbarre consoli-
dated bonds, guaranteed by the New Jersey Ccntral
are required iund thrco years. interest to cancel
the guaranty. In lieu OF. these they are 10 accept
income bonds, payable ten years from May !, 1878,
bearing per cent interest, If earned In con-
sideraton OF the guaranty's cancellation tho com.
papy pre prefer these bonds TO the 50 QUO held
by them interest Is concerned. The coupons
oil tho latter shall be cancelled as they fall iue. The
guaranty upon thom Is also to bc cancelled
The plan requires the consent OF tho holders Of
So OOO 900 Of the American Dock and improvement
Compauy's bonds not 10 prosecute the New Jersey
Central Company account Of Their guaranty bciOre
July /, 1883 Tor which concession the New Jersey
Central Company to deposit with trustees $7O0 600
of said bonds owned by H. 10 be applied at par In pay
SECURED AND uNsEcuRED
Tho secured CTculLOrS
erals to secure debts Of about s. The receiver
IL 10 apply any that may be received
from stockholders under the agreement to tn dis
charge these Liabilities. Unsecured claims he
com promise and settle according to his discretion.
These amount TO 100000
The stockholders are 10 submit 10 cash assess
mcnt per cent and TO surrender tenth share
of stock held For this they TO receive mortgage
bonds for the assessment and new income bonds Tor
the stock gwen up The total amount OF bonds
snail not exceed 81 100000 The plan, It Is urged, Is
intended to prevent a foreclosure
CONDITION ROAD
Accompau wing the pan Is u statement OF the con.
dtion OF tho road. II shows that out OF The lPc0me
OF the road shall be paid annually 1922 949 For the
year ending December 1877, the total net earnings
Of the road, win the bralcnes ana leased lines,
was S. 4S4, SAG, from which $646,5l1 Is deducted
as rental OF Tho Lehigh and Susquehanna division.
This leaves actual net income 0 81 838, 1885, The
road relieved from the Payment OF Interest on con-
soidated and convertible Uonds for two aud hair
years 600 per annum and the interest on the
American Dock Improvement bonds two and half
years (s2lO,oO0 per anpuml The total relief oo the
Interest account Will be $500 000 The secured debt
is 81 500 OOO ana to Pay 1T OF $4997 $50 Will be
Quired. Under the plan there ID 10 be paid:--
Annual interest. $622,94S
Interest on 900, 900 new mortgage bonds 3So 700
Interest on S. 800 900 income bonds :. III 500
The annual interest account during two and
a half years is.. ST. 179.44s
The ann ua net income eis............. !, 1888. 335
Leaving balance OF net income. ........ $65s, ,Ss7
Making In two and halt years u balance
applicable to the payment OF debt 6AI, 2l7
Amount to be received from stockholders
under plan 2036, 500
Total TO be received on basis OF 1877 for two
years. ID, 6S4Ol7
Leaving balance Of 3l3, 232
10 pay the secured debt and interest,
Amounting to............... 4997 $50