New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-02-10
A SCHEME For Recommendations.

At n meeting of the bOndhOlders OF the
Columbus Chicago and Indiana Central Railway Com
pany held at the office OF the Union Trust Company
Yesterday. scneme for the reorganization OF the
company was proposed by the committee
through it, chairman, william L. Scott The
immediate adoption OF the plan opposed by some OF
the bondhode1s who desired opportunity to examine
carefully the terms OF the proposed agreement M
Scott was unwilling 10 postpone approval OF the plan
beyond Saturday, when the Pennsylvania Railroad coud
declare the agreement void. meeting VIII be held To-
morrow afternoon.
The Columbus Chicago and Indiana Central Railroad
was leased in 1859 to the Pitsburg, Cincinnati and St
Louis Railway Company. which operates IT, under
the direction OF the United states circuit Court for the
receivers. The lease was guaranteed by the Prhnyl'
vania Railroad and the validity Of it has been the sub
iect Of long legal controversy has been affirmed by
the United Circuit Court but from that decision
al appeal was taken to the supreme Court. In the
meantime negotiations amicable settlement Of the
matter have been in progress for many months 1t Is
Understood that the plan submitted by tho committee
Yesterday will adopted, because the committee repre-
than the tWO-thirdS required Inc pau has
been approved by the PrnnSy lyanlh Railroad.
In the scheme Of reorganization proposed IL II pro
vcd that tine property shall ne b"ugh ia under lore
closure OF the consolidated mortgage, and that new
corporation with capital OF Sl0oO0uO0 common
stock and @20ODO0OC preferred stock sal be formed
The preferred stock to entitled To dividends at the
rare of per cent yearly, ana Hr'c NV
dcnds 20 be cumulative, bur no interest on any
DELAYED dividends is TO II il proposed that the
new COMPANY shall issue irSt mortgage bond~, pdydot
in hfty years aud beuvug per cent Interest 10 the
amount OF go 100000. OF these bonds. P3,1OOOOJ Il
Ia be reserved to pay Underlying sectional bones a. Y
may become due; Sl2,s7s 900 Is 10 be issued II.
exchange the prescht first consolidated mortgage
bonds, and for the trust receipts representing
those bonds, aud the remaining S36Z2OOO Is ca De d
voted 10 necessary improvements of the property Inc
Pittsburg Cincinnati aud 81 Louis and the Pennsylvania
Railroad Companies pay 10 the new corporation
5000 OOO in cash IN full setl, ment OF an pending NJ
CATION and fun discharge OF al HdbAty IN
der the lease The Penusy igania Railroad Company
is to convert the second MORTGAGE bonds hclt;
by 1t into income bonds in accordance with tue decree u
the United States Circuit Court Holders OF the present
consolidated mortgage bonds, aud or tine receipts rep
reseuting them, to receive for each $1,000 bond
one OF the > per cent bonds OF the new company
$500 IN its preferred stock and Sl1O IN
money. Holders Of the bonds On paying ten
per par value to receive Tor each IN
come bond II 80 preferred stock and 500
common stock OF the new corporation. Holders
OF the present stock are to pay per cent OF
the par value. and in consideration receive com
mon stock OF the new corporation 10 the amonut OF
nuc-ait Of their holdings The bondhOldcrs committee
ii, made purchasing committee, ana all money 10 ne
pad the agreement AMI AL stock ana hoLd7 10 ne
surrendered be placed IN its hands Inc commit
tee Is empowered To Limit, BY giving puDhc NOTICE. the
time In winch bUudhUders ana ztocknolders may Ne
come parties to the sCAcmc OF reorganization