The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-02-22
RAILROAD REORGANIZATION.

THE NEW YORK, LAKE ERIE AND GREAT WEST
ERN RAILWAY TO LEASE THE ATLANTIC AND
GREAT WESTERN RAILROAD FOR A PERIOD OF
NINETY-NINE YEARS.
cable despatch was received on Wednesday, Feb
ruary H. in Wall street. announcing that the English
trustees OF the Atlantic and Great Western Railroad
had agreed to lease their road to the New York. Lake
Erie and Great Western Railway for a period of
ninety years. This news created excite
ment in financial circles and was received with much
doubt by brokers and others. President Jewett, of
the Erie. and other officials of that line pronounced
1t a mere rumor. 1t turned out however. yesterday
that the report at that time substantially correct
1t was stated on the most unquestionable authority
that February IL the English trustees of the At
lantic and Great Western Railroad mortgage held a
meeting in London and agreed upon proposition
for leasing that road the Erie for the term Of ninety
nine years cable despatch received from London
states that the trustees of the Atlantic and Great
Western have announced that such will be the case
after the reorganization Of the road. Mr. Jewett
acknowledged yesterday that he had received cable
despatch % that effect. with the information that
full details have been sent to him by mail He said
that Ii the terms the same reported he would
submit them without delay to tho directors and
trustees of the Erie road. and the lease would I'M
doubleday be confirmed. He not DESTROYS of
talking much about the matter until he had sent in
his report to those persons higher in authority and
particularly because he was still an officer OF the
court
PROPOSITION FROM THE ENGLISH TRUSTEES.
The terms proposed by the English trustees of the
Atlantic and Great Western Railroad stated Off
cialy involve the foreclosure of the road under the
proceedings instituted three years ago in the States
OF Ohio. New York and Pennsylvania. Under these
foreclosure proceedings it is provided that the Ohio
first mortgage bonds, amounting to 81. 800 shall
have preference other mortgage. and i'll
the reorganization scheme, now proposed, the Erie
will guarantee the interest on new bonds to be issued
to take up the Ohio first mortgage bonds-the re-
ceivers Indebtedness amounting to $300000 and the
court fees. in ALL aggregating about s5OOo0oo. The
reorganization and reconstruction expenses, includ
ing the laying of third rail, narrow gauging and
equipment to be met by an issue of Atlantic
over to Erie to expend After the road has been
sold and the proceeds divided pro rotd among
the stockholders and the junior securities holders
new stock and bonds will be issued to the same IN
lieu of the old All the surplus earnings after
the payment of the interest on the new issue of
bonds to be divided in the proportion of two
thirds to Atlantic and Great Western and one-third
to Erie. The Atlantic and Great Western Railroad is
to be forecosed purchased and reconstructed before
the lease shall go into effect
LEASED ROAD.
The Atlantic and Great Western Railroad
from Salamanca, n. Y, to Dayton Ohio, and with
branches and leased lines. has in working order
$50 miles of road. The leased line consists Of the
Cleveland and Mahoning Valley hallway. and the
branches the Franklin branch from Meadville
Junction to Franklin, Pa. and Silver Greek branch
1t also leases from the Cincinnati, Hamilton and
Dayton Railroad Company the right of way over its
lines from Dayton to Cincinnati. 1t was originally
formed by the consolidation of the Meadville Rail
road Company the Erie and New York City Railroad
Company and the Franklin and Warren Railroad
Company, on August 49, 1865. II sold under fore
closure July l. 1871. and reorganized on November
TO- 1871. 1t placed in the hands Of receiver on
April |. 1867. and leased to the Erie Railway on
December 7. 1863 1t again fell into the hands of a
receiver April 8. 1869, and released to Erie
January l. 1870 After the reorganization Of the road
on May l. 1874. it was again leased to Erie, but the
lease executed. On December 10, 1874, it
fell into the hands of receiver for the third time.
and has since been operated by that gentleman.
II. Devereaux. The capital stock of the company is
S34675s o4 10; the funded debt s6s 81 49, and
the floating debt $6.475, r76 80.
THE BENEFIT TO ERIE.
The New York, Lake Erie and Great Western Rail-
way from the contamination of the lease will become
trunk line to the State of Ohio. which will open to
1t the Western and Southern trade and give It q
transatlantic business