The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-06-30

To the WAIKIKI bonds. .............. 100000
To tho treasury Tor reorganization expenses
and contingent needs.... $1,000
Tota issue oil bonds. 81 900, QUO
The cost OF improvements the line and Lev
equipments will be 100000 For this purpose and
Tor the protection OF tho security holders there Is
available s., 500, 900 In stock and $3.50 900 In bonds
Il is proposed 10 gvc the holders the Obligation
OF the company the privilege to take this reserved
sue OF STOCK and bonds IN proportion OF two OF stock
10 one OF bonds, upon she following terms The
bonds AZ par In cash; the stock Sc cond
ponds oi the Montcair and Greenwood Lake Railway
Company, ninety per cent IN cash, pcr The
money to be called tor requisite in not less than
four equal monthly payments. This option 10 expire
There seems TO be great aissa tsiaction among the
Junior bondh0ldsre on account OF this report and N
order 10 Ind out the feeling which reported
ist among this class, HERALD reporter interviewed
Mr. William Mcdowell VINO represents majority
Of the JUNIOR bondholdere, and IRON nm obtained
statements from the hrst stops taken by tho bond
holders to reorganize the road. He said that at u
meeting Of the Oondnoldsrs held June Is resolution
Was adopted that committee OF eight the chair
man be appointed to draw up a plan OF reorsaniza.
ZION. his resolution was subseq tIy amended SO
az 10 make tho Commute CONSIST OF ten, ave
whom a. we're ,s BE- app sppoa,sd from among
who are parties 10 the foreclosure proceedings In
progress, ami I'VE to be appointed from among The
men 20 requested 10 meet and agroo upon plan OF
OBSERVATION-DISCLOSURES snail fairly RECOGNIZES Jun ior
sccurtios-And 10 report NJ a future Meeting This
amendment was adopted.
scHEMK oY REORGANIZATION
ar. McDowel says that plan Of reorganization 10
now being circulated among tho bondnoiders claim
ing TO have tho endorsement thIs com nitIee and
mat this plan requires each holder Of Monciar and
Greenwood Like Railway Company second mortgage
bond Tor 81 900 10 pay out IN order that he snail
ceivc securities IN tho new compaRy-arsL his old
bonds NJ ninety per cent f&900 cash 500 tor 81 900
Of stock, and second, $500 tor a $3.50 BOND. Every
second mortgage bondnoidsr must invest 5000
iu for ST. coo no now holds or lose Il,
The committee do not seem TO think wei enough OF
their plan to sign u, and tho Dondholdsrs, IN his
opinion, will think loss Of 1t The persons
mako u attractive by the delusive words
extension and combinations They are largely nrst
mortgage bOndhoiders, out the money is All come
from tho holders OF the second mortgages. The
luton authorizing the appointment OF this
In tho place Of calling this meeting they send us
note 10 agree 10 this enormous assessment lose
our in';rss, In .hs properly THIS option 70 expire
mortgage bondnoiderA Mr.. Mcdowell has seen Mr. ).
:. iden, who says he Is opposed TO tho plan tsgned
~ M George r. siesrns as secretary OF the commit
tsel and VIII have nothing 70 10 with it
Mr. NJ. X Jssup declines TO serve on the committee
aud - not 10 favor OF ths plan Mr. A. W. Benson de-
ciines 10 serve Mr.. A. w. Elliott approved tho plan
under mistake and will not pay his assessment ur-
der IT,
The other gentlemen on The committee no has been
unable 70 SEQ, but he claims that tho action OF q
committee appointed TO perfect a plan that shall
iuturs meeting, In ISSUING option $500 10
each 81 OOO OF second mortgages held by Them
recognising tets stock, In reDortng meeting
where they could consult together, IN sending
plan as tue action OF committee That had been AN
nounccd whose members were opposed 10 tho plan,
10, 10 say the isns very unjust Dir. Mcdowell is OF
opinion that t 10 better TO lot well enough alone.
Hc says that the charter Of the road STATE
OF New Jersey, that II expires at the state line
GU Greenwood Lake ana that IL nnshed
10 that point He thinks tho bondh old o s
shoud lake advantage OF the foreclosure Of this
hrst mortgage bond 10 buy IN the property low
ngnre Nh p0ssibic and hon hold the prior lien bonds
themselves They should lake income bonds Tor
their second mortgage bonus, aud stock Tor IN or
stock, and carefully buiiu up what they have and
keep nloof IRON any new or wild speculation.
tie says that the extension 10 the ust be In
New YORK State, ana asks that another company
dertakc tho building Of H. anu that the
psny help them along, put vt the same time take DO
risk. Finally ne contends that q bctior pay OF
buy in the road Tor It's rst rather than
vest $500, 000. winch undertaking ne says would DO
very uncertain.
ANOTHER PROPOSITION.
10 accomplish his ideas on the subject he proposes
the following plan OF rsorg izstioh -
To buy the property NJ foreclosure sale and
make u new nfst mortgage Tor the cost aud
the amount OIL receivors ccrtihcatos, say. SIS 900
hlgnt OF way. $4,000
............ 90 200
Issue income Donds Tor second mortgage bonds and
accrued interest, $ls0, 900; issue stock ior
bonds and stock 10 pay assessment equai to b d
pro rata share of what tho road costs NJ this lore
closure sale, In the proportion Of per tho
bonds to one tenth OF per on stock, and
for This assessment tho bondholuers paying II shall
receive new first mortgage bonds a. par.