New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-01-02
THE ERIE REORGANIZATION
A PLAN AGREED ON by LIE Dii'r'O O'''
DREXEL. MORGAN & co. AND J. S. MoN"AN q
co. WILL :ssIsT N CARRYING OUT THE

|
co. WILL :ssIsr N CARRYING OUT THE
scuEME-A NEW MORTGAGE TO
SECURE BONDS OF 100000
Tho directors Of tie New-York Lake Erie anu
Western Railroad Company have prepared re-
organization plan for the road. 1t Is as ioiio"''
Va Of C,rtlaudt-st New-York. Jan 2 isyi
To the folders of Second ConSolidstea 2ncome
| Ponds Funded Coupon Bonds or loS. li ~ ,ho
Honds Preferred and Common STOCK oi , uJ
NewYork Lake Erie and Western Kanroau
yonr directors have heretofore pointed ont IN tne
annual reports that, while your copaHiy ey-
nendures Tor the protection of IT'S property ana S.
velopment of It's transportation tacli'es. ,es en-
tirey without the power to raise means cn dTr into
expenditures. Some few assets tnat NAM lime to time
have been disposed Of and their proceeds nave p XXI
used far as they would go d gai nspcent, and
fdr this reason your company Tor some yaoppino
has been burdened with constantly nly AZ" 20 900 COO
n%Ssiye of SC 10000 OF car Trust obga;i9ns
Ins 's acond i"c have prae
tIcaily precluded the company ron SECURITY
and II has been minated to you in the annual re-
ports that this fact was liable 70 Drns 40 affect
mont upon the corporation, ana seriously ~ ale''
the interests OF the Second Mortgage Dlrnr ON
The financial conditions OF the pa Sd nec@sstated
the placing of the company under ile Plod ~ any
means FOR ordinary beterment expenditures and to
,m,' Maturing car rust obligations, have been
9 OH tn n nGol OF It's propry would doubt
less adopted by seeking refer SSnoi5 Cnnso
in the payment OF interest on 'I'e "e'o"N
dated Mortgage bonds.
PROVISION OF TIE SECOND MORTGAGE
T. Is true that the conditions which have con-
rrontel the company were contemplated as pos
s.bility at the time OF the reorganization III 800
when the Second Constituted Mortgage was Gre
ateI and with this IN nind provision was INSERT
fItp IN
rights should 10 the DondholdeEs unless '"e
conuonv should default In the payment OF SIX
successive coupons This peculiar provision mas
nj all times deprived the Second Mortgage pohds
OF the market character they would be e,tn TO
requirements OF the company had peeh prope"'
% necessity of securing construction funds by
defaulting in interest obligations IS OF course. US
criltaoe, 70 tne hoTIbodSrs and the possibility Of
It's recurrence At any time IS a constant nu are
/ The latter: but. 80 long as no other means ale
! Available its recurrence IS almost matter Vi
e, is therefore, the unanimous opinion OF your
direc.nrs and also Of the various representatives
Of the security holders with whom they nave Icon, con,
~ viii obvlate the existing difficulties Win ms
snI J" living loo vtars to run bearing interest at
Z Dor cont into which the present second cons0il-
lated mortgage and certain other bonds are 10 ge
t. require prompt payment Of all COUPONS III Sasns
gav default The amount Of the new mortgag s WIZ
enable the comTany 70 use cer' n1 s n nS,king adj
dons to the property. As an essential part OF ,he
scheme. the present floating debt must also oe pro-
ON The basis Indicated. a mortgage OF this char
! 49, c,,,,.s OF the company. ami would therefore
lie well within the earning capacity OF tne proParE,
II Us legitimate construction requirements arc "''
provided FOR.
THE NEW MORTGAGE.
Tho nev mortgage will cover the property OF the
! ~.,, YORK Lake. Erie AMI Western Railroad COM
rany. including its leaseholl OF the New VtN,
/ Pennsylvania and Ohio Railway, and Inc cap"a'
| stool, of the Chicago and Erie Ra'iroau Non'p""''
Tim. giving il control OF the entire line to chicago
| .,l v.,u secure bonds limited IN amount to S"""-
Coo hearing lnteres, ut per cent per annum from
f,.c.mber ! isgs principal ana interest payable IN
gold coin OF the present standard OF weight anu
nncness The new bonds to be used only az ioi'
$s % 80 20 acquire the present second consonat un
mortgage bonds .this emprt,rs me and
'secord consolidated mortsase innuf t vJupo" -
! bonAs) n, par conditioned on each Hspos,JI, ~
ruch bonds subscribing ana payins N Slsiis 80
o. per and interest FOR auI,t'on' D, ~, S4W
bond for each 5000 second consol'a'eu Do"''
IN second consolidated mortgage bonds deno,-
tel hereunder the coupon que DSf ,ImnS,,sy
l'G. VIII be- aiiowei f3r IN cas honas
so o. to acquire the pres mt funded COUPON pgnoS
" Of IS, Ar par conditioned on each depos,It -.
SUCH bonds Subscribing and paving IN cash ~ Il,
% Der cent and interest FOR addtlonai, Don's ot
b i"T pr for each $500 funded coupon bonds de-
,-os,Ss 80 oc1ure the present income bonds ut
bar conditioned each delositor OK su.h DClius s
subscribing and payHS on m 'I bSnds IS Of The The new
| i-sue 10 an amount equal to the income oo"''
saei loS f,r subscription by depositors OF second
1n5oliIntci mortgage bonds. funded coupon ana
i2 80 to be- reserved to acoare or proy ns d l2r
the present reorganization mrs, ~ nm W ~ reui
c"lnieral trust bonds on such basis as the lie"
!
der proper restrictions only Tor conS,ruc'' 1i
,ouipmen, the acquisition of new pr0peTty an"
htterments to an 'Nt,nt not hsf said reserved
borls may De further used IN any year 70 t'e
silent Of 10000 II neces,sary' In order 10 A'-
TIE srconi consolidated and funded coupon bonds
OF N w w5 th trst,.. 10 be held long may
Ice deemed necessary. for the protection OF the "'"
'2 M's.r4 prcxcl Morgan X Co, o. New-York and
Mcssrs J. Moran 9 CO. c 9I lio ont the above
scheme ana to attend to the necessary details OF
r w. ne ban operative whenever in their judg.
mont sufficient amount Of t bn seHe ern d ss
Nth th"m Ne refer to their circular of even late
herewith
TIE NEW YORK. LAKE ERIE AND WESTERN
RAILROAD COMPANY.
ii%%%%x }S%}yrroro" Nj WiI'Fr yfH$S
| NRi;NM = HEWITT !ASI'S ~ TInn,'vN'
| ALEXANDER T.. ORR va, ~" al ttntii,,iiSr
WN A. WIIEIIOCK, w H,iiinu -
NORRIS Il. JlSIP, iI'T'' -, ~. -, n,,',.,,rs
HENRY II. COOK. hV"'u Va "
The letter Of the bankers referred 10 Is 'S
s.ew-York and London January 2. n'i
~ tho hnlIors Of the New FORK. Lake Erie ana
- Western railroad Company's second '0hson-
dated mortgage bonds H. e. new second , coli
snlilatrd mortgage bonds and second consoH,,
doirl mortgage funded coupon boads,' iuhdeu
common bonds of 1855: and income bonds: 49,,
AMI Western Railroad Company 70 cooperate
with that company In CARRYING ont the pan Tor ,,