New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-03-01
PROVISIONAL COMMITTEES.

.,os.,ion 70 the plan of reorganization OF
IN" e,a Work Lake Erie and Western put forth
49, directors committee has taken dcHNi'e ''dle
- w. appoin,mea. by the objectlr, 30 .o'derS oi
!" -",nr.iye committee consisting Of l. H. Harri-
,n NJ Hartman & Co.. Henry Budse Of ha4'sa'-
,en G. CO.. and John j. Emery ana sidney N'pS''''
- aekne for q new plan ~ reorsdn'al tIon from
~ |-r,i..e ,h. bonIhollcrs aame the following
infections 90 tnc directors stHtm'
raat by ,hc enia.- .eu' Of ,he s-lo RON
W. aiken it reduces oar sccul.t Ho.e ,''" one
5ssc,cond-That - lr. L., j, ''''''' 'o'
,,,e re4ucti ION 1t interest o. our ''.. -. ,. No..
mira that th- ..e IN Eject ng am
sSssnlert ON The hor.lho ieu is an uAJust ana
Sfher;o uuh.,rl Of imposition ny " "'"''' "P'"
sFF d.~i rr, If en- assessment may re forcibiy5
demanded and collected by IeDt."' ,j.r.s nrcr
erty and 10 keep i; - his cn'ro' t"iS I.ru d'es
NOT ~ far enough IN. condlpG" ON ' s,Ind and
nsfs5S, calls for M caor, sacrifice on the
art NJ the debtor company I'd preserve lis property
and rs'g rS ,na, # successful would tend to
SHiist dsnearous precedent. which would be
. discteln to American railroad finance; yo.aiins
d tSn5 20 increase distrus, in AL American raj
ro We 9,s, regard as objectonahe considering the
roi,,.on NJ PARTIES the language oi me circulars
Of tb4 company ana !,s bankers, con .ai;illiE an
tp'r rr,aoslj,n; ara :ae scant considerahon given
70 Jgscstons 10y II, bondh'.derS Tor a mo|.NciUon
Of the scheme
THE COMMITTEES LETTtf
Tho Provisional Committee Of the Erie bond
~ol,ors .,onossd If Vernilye & CO.. Kuhn. Loeb
G. RI Hallgarten 4 Co.. Sidney Webster. John \.
stewart. E. H. Hartman. j. ID. Probst d Co.. John
J. Emery and Charles a. Peabody. Jr'-YeS'eT Jay
,,ale public the following letter. sent to the Off
GERS OF the company. announcing the oiSaNlz'toh
of the opposition in definite shape;
l. s.r III
NO hog 70 say that we regret that you cannot see
sufficient merit in any Of our suggestions to IN
duce you to modify your plan OF Teoreani ,2
50 as avoid the conflict "hlc. ail," olaV ~
he imminent ana which al best must uelaN VIZ
81 rababilifatiln of Your companYs finances ana
MAJ ~. bCIed ibat a plan more conserva-
rive than the one You pTOpos" would ne accept
obIe So mar the fixed charges TO be assumed IN
~" ~ f,,t,re Womb be- reduced TO figure whereby
~ rreSit of the company would not only be en-
III anotber default IN the near future would he
ir,nrohahio thus protecting the bondholders against
having 20 max. another sacrlnce, a. NelI - w
Shareholder from hoius shut out by forec!9r~lure
80 tbe mortgage which YOU propose to issue. This.
il was thought would be all the more attraciNS
aim ,our management of the property since
III Your offciai reports show that YOU have had
in addition g to he Of @ 2s 6 to protect and I'M
prove the property as follows;
Long Dock bonds s. 6e., Geo Geo o 90,
Less - take up ola bonds "'V'' e. i,o ooo 90
weehawken Dock bonds....... $4.oeoococ o.
Less old mortgage. w" ~ - 40 900 eo
N " L lis n W. Oon ,,. anu 100000 %
Surplus since ISL. after
deducting 50 Isl 45l ~. asses
mems III III i5s Inn, In ISL 052575 C3
Toto, ...........s zoo 81 ce
Ana as per statements made in your pab9ea PLAN %
Floating debit. AN, mn
1o.o, .S26 zoo sl4 60
II was necessary to issue the new securities re-
ferred 10 above the basis OF per cent lh.ettS
raynent If upon reorganization in 1871 d pan LaI
been adopted 10 place the company upon il'sHra
basis Of credit, and which we believe could nov
he done these securities could have Deen lssueu
at a rate somewhat approaching that OF tHe oLITa
trunk lines. at about per cent we sincerely
regret that having had this past experience, you
decline 10 profit thereby. and refuse 10 DO now
company in such a position that the property may
be maintained improved and operated on a basis
equal 10 that Of its competitors.
The Stock Exchange governors yesterday en-
royered the Committee on Stock List to add 10
the list the engraved certificates issued 10 DreXel
Morgan q Co. for second consolidated mort
gage bonds and funded coupon bonds Of the Erie
road under the company's plan of reorganization.
There are about s3s 100000 bonds OF different classes
listing of the certificates Of deposit DreXeL Morgan
& co say that about SaVJWO bonds have
already assented 10 the scheme. As soon as a
ma ioritv OF the total issues II deposited the flrn
wishes 10 declare the plan operative, and the Com