New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-03-07
FRIES NEW MORTGAGE PLAN
OVERWHELMING FAVORABLE VOTE BY
STOCKHOLDERS.
npryFr. MORGAN & co. DECLARE THE RE-
ORGANIZATION SCHEME OPERArNE-rHo-
TEST MADE BY THE DEFIANT

TEST MADE BY THE DEFIANT
OPPOSITION.
A, tbe specal meeting OF the stockholders OF the
>-rvor,, Lake Erie and Western Railroad yes
,.rd,v called 10 consider the question OF authorH-
inn the new s7O09lC00 mortgage required py tue ~
rcttors' plan of reorganization. almost 'n''e
tors of the capital stock was repres"H'e". D. W.
Mc,,u,louyh was made chairman ana a. H. MA.
dnrorgb secretary. The chairman said that whiie
the company had been advised by oouN'' '"''
was unnecessary obtain the consent OF tie SUI"
hilor. 20 tho execution and issue of the proposeu
honds the directors had deemed 1t only proper u
cali the meeting OF stockholders ana suo'"' '
o,,on Of the Board of Directors for their approval
MIR Mccullough also announced that DreNe'' 'o'
gan & Co had declared the plan operative
Cort,ondt Parker offered resolution approving
,,, ,lon and w W. Macfarland, counsel for the
n,>os,r, honIho,ders and stockholders, then maze
remarks In objection to the resolution nuns d III
NAL protest with the secretary. MI Ni0N"''o.o
IN roulv said that all the cOnslderattoHS 9u5ee
hv AIR Macfarand had been reviewed anu p'''e"
,,non nv the Board OF Directors before the p'.
"pI' =. t,r,ote1 When the voting began MT
,,ao,orland insisted upon the taking OF the sta'
,r,. oath os TO the ownership and cohtroi vi ''le
stock upon which proxies were Voteu. a.,
Hewitt took the oath. Mr. Hewitt act"s i ~
Proxy Committee. composed OF D. rie'po.' w.
'a robp G. Mccullough and himself, cast vote
I'm or aDpTONlub thc
sbores There were scattering votes u INC ~
~, -, d., .-o shares In favor of the resoiuuoh' 'i''
,,,o,,and waited on 17J shares in oppos!uoo "
,hs nlan. The total votes in favor OF the ie.o'u
ton which approves the plan Oh ieo' 49,
,os ga $40 shares. nearly three-lour'"' y. w.
total capital stock. and only 10 sha'eS "'''
In opposition -,,A. Yesterday
-, Troxa, Morgan g. Co, OF New-fork. anu .. o.
Norean & Co. OF London that the Erie ieo' s"
t,on plan was effective, three hffns n"S" 49,.
.,yeJ the assent OF a majority or eacn c"' I1oiders
49, caIIed FOR in their previous crculaI -. hem
BOMBS caieu 40 bonds are required TO deposit the,
with these firms on or before MAJ T rraoyranization
order 10 ds aNG hat date received at ALL will be
sutiect TO penalties to be hxed oi anpear to
The ht,e by the overwhelming vote OF rhe
sockholders In favor Of the i y authority:
i.Th '"nositi1n committee Is stu ACQUIRING to-
tons rvry ~ the ultimate result, and the action
,o<an today does not affect their pSsiuUn ,hat q
way r HE amount Il the stock voted by Mr;
nS and others as proxy in favor OF the hew
m ,a,ars was not owned by the persons N wnua
mor'shG onSarsd upon the registry list and thcre
n r Under the law ctud legally have been vG'eu,
IT, s sci OF the committee has been lnstruceeu -
rmonnts II Stock voted at thu meeting, VII" VIC"
TO sucn ac,v" nro s at the Erie meeting was pre-
r,rJ hv " " Macfarand. who claims 10 hase
pp,yn Inc second mortgage ndenture when ne vas
dr1"m ur = ,bn law firm which assisted In the legal
1 h.
r"r.rGlngs Of the Eries last reorganization, Tue
rotest characterizes the present plan ot
I'm as recurring Il submission by the seco"u iiHt
,,,. h,rdh0llers 70 "wnat Is nothing more NOT re-
i'm practical confiscation or SURRENDER Oh theil
' r t,,pr security" Mr.. Macfarland then presents
in detail the arguments wien nnve Man md
against tho principles Of the reorganization pan ao
which The Tribune has presented at tues' Inc p'0-
test closes as follows: =, - =.
"Thr new mortgage proposed would OF Gourse er pe
s,il,,rdinat- existing mortgage. III "ouu
have nothing rest upon that was not aireau! Cos
cred by the present consolidated morgass, anu '''
new bonds would b. quite In the air unless
some legal way could be found for the new nortg
boudhod.rs under the scheme TO still retain their
Interest IN the old mortgage An attempt TO carr!
! out such {, plan would distinctly foreshadow an
Interesting ard doubtful litiGaton that It %0u you'll
hardly ENLARGE the market value or the new ponos'
Indeed IL stands tnat such state or Things
would most seriously impair the value or the new
series while al the same time II would be very ikey
to very much enhance the value or the present Dohus
| adhering their existing security me proposed
scheme ,s conceived to be wholly mpracticaplo IRON
either n business a legal point OF view without
| substantially the unanimous consent or the entire
holding II the present bonds and those Dondnolders
being well advised. not at all likely 10 SURRENDER
| their existing security upon the terms proposed by
| the debtor company and Its bankers