New-York tribune., 1894-04-28
NFW.ENGLAND'S FINANCES
crrK1NG TO PUT THE ROAD oN
SOLID BASIS

THE
MEETING THE NEw-HAvEN's INFLuhN0H
,ssrssMENTs REQUIRED TO I'M
PROVE THE PHYSICAL con-
DrTIoN OF THE PROPERTY
.,..oo an reorganization Of the New-York
ond Nsw-England Railroad yesterday ahhoui'eeu
49,. ,orrrol Man which contains numerous lea'u'e
a oxnI.nations which have not heretofore reacneu
,ha nuhl,c The Importance Of the scneme heS "
the fact that 1t is the first proposi'ion 80 c.,
for a radical rearrangement OF the company ~
COS with a view TO placing the property l" :, 49,
,,donondent postion. In preparing Its piah ."s
p''. ,,,,troted ou doubtful assets from the
.o,,,,s haIance-sheet and proceeded with vic"
-, nI, % wine out the floating debt ana hee'
maturing obligations. but to provide luhu w"
sboud Mace the road in a physlcal conui''o'' -
rould assure ample growth In luz iutuie
e,a,,,v There is evident, also. determination u
a.s,r. the Independence OF the property by rso'-
o,s reforn in its finances and an improvement "a
a., oratino facilities To accomplish these eiius '"e
non, nlan necessarily calls for sacrifices lroi" ''ie
,ockho,ders but care Is taken to meet tne p''''
hnrv Of hostility from the New-fork' ->e"
and Hartford by equitable provision TOT tne s0'
mortgage bonds through which the Ne" ,a
o,,d he compelled 10 act In order to secure the
,ao, ~ any foreclosure proceedings. stron :
1orur,ting syndicate has been formed TO fac"
toto ,be success Of the reorganlzaton Oh t"e ""e'
now laid down =. ooo ooo = nor
Tho co,nnanv new mas outstanding S'OUVo per
cont nd $4,000 coo per cent first mortBabe po,.'
,. ooo coo 6 nor cont second mortgage bonds; M'1"
90 4 per cent terminal bonds Soinop : per 80
cumulative preferred stock and S2oV"V" eon',D n"n
,oct q total Capitalization and debt of $'o'5ioVp'
ovcrus,ve OF equipment bonds, notes ana o'nei oo'
cations The plan Of reorganization co"'e''p -
first mortgage ffty-year per cent bonus h'i,''''
sl7 800 OO0 3 per cent nOn-cumulative prel'I'e" -
IN the amount Of 10000. and s2o"""o co"'ino"
s,oct q total Capitalization and debt OF $iZ'v'"''
t. nc, ,-,,uting the new per cent first mortgage
hords 40 COO 600 will be reserved to retire or 10 De
exchanged for the present frst mortsase "H
q S75.Oc are be used In settlement VIII" Wv P
ont second mortgage bondholders and $tl-'VVV W."
be held for other reorganization purposes ana i".m W.
ho.,srnants and additions 10 the property l"s
rv, nreferred stock Will be issued to the amount
ses4 O1o 70 present preferred stockholders on pay
mon, os d per cent In cash. and S.SlGVD VIII DE-
used 10 exchange for present holdings ledNI"5 "-'
Go subject 10 reorganization purposes Inc ~"
common stock will be exchanged snare Ior S""
with the present stock upon the payment OF ''S
ossessment of 90 per cent The committee Is a'io"
tho privilege of extending the first mortgage Do""S
q, q lower rate Of interest than they now bear OF
40 oy,ry them off in cash. Holders OF second mort
gage bonds are offered for each BOND WIN ooa1 VI,
due coupons s42t in cash ana S1 IN rrm ds are left
bonds nj par. The present terminal oouS ,as a.. and
uniIst,rbed and the equipment bonus or ,in no. ~
other debts 10 be ADJUSTED dI '"e u''~' -
Tbe ash requirements OF the New-York ana New
trngl,n1 have been carefully estimated az Iotiyw.
~ rneet accrued interest, notes ana noatins ueol
"a i3S agi for the general managers requirements
SsoGO and for the engineers requirements sS'@.s'-
40 !, total OF S7isN5. The requirements OF the
engineers department include SiDeD ior repairs on
hridres etc and Sii.33i FOR elimination on grdas
crossings and changes OF grades while slsI2i9 VII
be needed to put the road In thorousny e. ss,'s
factory physical condition This later eNp.hullule
has bean carefully itsnized by the chef eng!n'"r
but it Will he made gradually ana az tHs Ss
sfl mai rk O
been deemed imperative however 70 inciudr tie lui
anount I'm any scheme for rehabiiitating the prop
arfv In the estimate OF the amount required Tor
eliminating grade crossings ana changing grades no
nrovjsnn is mad for the change OF grades In Boz
ION nor at any points except those ar wnicn carry
action necessary ..,
the second mortgage bonds. for here comes IN thr
clement OF thu opposition OF the New-York New
Haven and Hartford. which holds conslGeraoe
amount Of these bonds. To meet TINS sltution w
second mortgage bOndhodcrs with sacrnce or cof-
cess!on but Will give them large proportion OF
their lien IN cash and remainder In bond which.
soon tho reorganization Il completed. VIII proD-
ably show the holders a profit Ultimately. under
the plan. the bondholder will receive more than par
and interest for HIS bond. The new bonds WIZ be
secured. not only upon all the present properly OF
COMPANY but the additions ana improve
nens and its value VIII be added ID by the restora-
ton OF the company 70 a solid financial basis
The heavy assessment upon the StocknoIi'lS -
rendered unnecessary By the requirements OF me
company for the present and tho future. The
success Of the plan OF reorganization Will give the
New England Company - saieo net cash from
stockholders and 81 i25co In bonds. total of $3.50
a.sents 10 the plan be made by May ~ deposits OF
stock and securities TO be made with the Manhattan
Trust Company. OF this city, the Old Colony
Trust Company. Of Boston.