The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-06-30
MORE COMPLICATIONS.
The Effort "a Save . Railroad from Heins
Sacrificed and the Resuit.

A new complication has come up In the
mixed affairs Of the Montclair and Greenwood
Lake Railway. A committee appointed at n
meeting OF security holders on the 18th inst to
confer relative to an arrangement that would
save tho securities from being sacrificed by n
forced sale In August next, reported plan
which was Understood TO cmanato from Cyrus
W Field. who presided at the meeting. and
was Chairman of the Committee on Roorgan-
igation. The plan was to complete the extern
sion to Kingston. under the title OF the Albany
Air Line Railway Company. leaving only 102
miles TO be built to complete II through to Al
bany TO make the capital stock q, SOC. 900. and
issue t2.000.000 Of new bonds the old bond
holders TO turn in 30 per cent in bonds and 10
per cent in cash to meet the expenses OF the
extension, which were estimated at 100000.
Although the attempt was made at the meeting
which appointed this committee 10 commit the
second M well ma the n ret mortgage bondholders
beforehand to the plan to be agreed upon by II,
II s now vigorously opposed by tho holders of
JUNIOR securitss; From the explanation of Mr.
william y. Mcdowell. who represents n ma
lority. and who is active In the opposition. 1t
egems that tho scheme put forth by Mr.. Cyrus
W. Fields committee involves no less contin-
line To- the East and West.
Mr., Mcdowell said that when the new board
Cyrus W. Field. who was elected President,
found that all the fret mortgage bonds were
pledged as sssccurity for loans at fifty cents op
the dollar. These he took up a. FAR rs lie could,
but when they became due. instead OF paying
them no began foreclosure proceedings against
the company. and az II had no one to defend II,
decree was obtained under, which thu, prop
orty was advertised 10 be sold on Aug H. As
the claim under which the decree was obtained
about $4,000. 900. the holders OF the stock and Of
the junior, securities called the meeting at
pointed They were Messrs. Samuel j. Tidenn,
fSsI ssrr and Fo fs@ss ASon sS ,SS.s
who took part In the meeting WINS Mr.. George
stearns OF Boston, who i was generally un-
statistics to show that the road was absolutely
valueless under present circumstances. and
unfolded scheme Tor, saving y by extending
connect with the WAIKIKI Valley and other eF
roads by supplying missing links until it
point the Delaware and Hudson would take ii
up and carry II on TO Canada. connecting with
Gen. Burt's new road. now building from the
lIoosac tunnel to Schenectady. and 80 on east
through which Boston looks TO a connection by
way OF the Albany and Susquehanna with the
Of roads and so on south. Mr.. Stearns was care.
ful TO say, however. that the Delaware and Hud-
con could not show its hand AZ present. ~ 1t
was To certain extent dependent upon the
New York Central, which would not be well
affected toward any such project as he had
submitted by Mr.. Cyrus W. Field, through Mr..
Stearns. requiring the stockholders and the
second mortgage bondholders to raise 5000 900.
practically requires every holder Of u first mort
gage bond of 81 900. now worth %. to invest
5000 Of new money. which those whom Mr.. Nc
Dowell represents decline 10 do, He proposes
that the holders Of the junior securities buy the
property in at the foreclosure sale as cheaply
aS possible issue new mortgage for the
amount OF the purchase money. and assess the
amount upon the holders Of the junior securi-
ties. giving them IN return first mortgage bonds.
He says that the road 10 the state line at Green
wood lake is under New Jersey charter,
whereas the extension northward wound be I'M
der the New York law; and he argues that II
would be better for the holders OF these securi-
ties TO secure and hold the first lien on the road
themselves and carefully build II up. leaving II
10 the other companies that desire this connec-
ton to push II. helping them as far as possible.
but avoiding wild speculation and the danger
OF renewed bankruptcy.
Mr.. Mcdowell added, that OF the committee ap-
pointed by Mr.. Field, Mr.. Tilden says he IL on
posed to his plan. and Will have nothing to do
with II: VI. X. Jesup declined to serve on the
committee. and s.not in favor Of the plan Ed
ward Benson also declined TO serve, and A. Is.
Elliott approved OF IL under mistake, aud will
not pay his assessment under IL or have any :
thing further to do with H. This makes four Of
the eight memhers Of the committee appointed
to act with Mr.. Field dissent from the plan II
r"organ izglton given 10 the public as the result
OF their deliberations.