New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-02-10
THE ERIE REORGANIZATION.
NOTIFICATIONS IN THE DIRECTORS
PLAN PROPOSED BY BANKERS.
FOUR PER CENT BONDS SUGGESTED INSTEAD OF
FIVE PER Ts-CONTINGENCiEs
rrONIIED Enp
PROVIDED FOR.

Provided FOR.
The bankers who are seeking 10 secure Il modih-
cation Of the directors plan of the Ncw-York'
Lake Erie and Western have appointed COM
m.ttee OF five to prepare further communica-
ton the directors in which the merits Of the
proposed notifications will be forth in dean
in comparison with the official plan. The houses
and individuals acting in the matter are August
Belmon: d Co.. Kuhn. Loeb & CO.. Nermilye &
Co.. John \. Stewart. president Of the United
States Trust Company: Hallgarien 6 Co. j. D.
Probs q Co. Charles \ Peabody jr. John j.
Emery Sidney Webster and H. II. Hartman
J. Plerpont Morgan said yesterday that nearly
enough assents had been received to the drecl ors
plan to warrant that It be declared operative.
The notifications desired b. the Directing bank
forth in their letter the Erie officers
and directors winch WAS made public In full yes
.orday. follows:
Consul! ltons ami comnarisons Of views have re-
celtly taken place between owners and representa-
lives Of the second consolidated mortgage boAGS
proposition detailed in your circular or January
, is not satisfactory. The consensus OF opinion
among these bondholders. VINO have also compare"
views with representative people IN London Is ma a.
financial affairs OF the New York. Lake Erie ana
Western Railroad COMPANY !. not nkely to , n
adopted by the second consolidated mortgage bonn
holders with sufficient unanimiiy To make the pro-
posed read1ustment a success. ID,
From desire To avoid conflict ana cohssqusm
delay in the rehabilitation OF the finances OF y You
COMPANY. and further becau'e The re-esta3nSn n,
ment OF confidence in American affairs; born a,
home and abroad can only II" FASTENED through
a prompt ana equitable settlement OF the linancIiI
difficulties in which many 81 oar lhporiant rai, -
road systems find themselves the unierSisn ~, q
present t. y9u some OF toe views 10 mil''n ,h,rb
preston has been given at the con'crrn'f. with mi,
have been held. in the expectation mat YOU a..
consent To- chanse your PuD,ho p ib r re
ton of ,hc company's finances. :,
Your plan SENS unius' inASmuch as hnnej
for which adequate equivalent - ohef' I
lcyrs forced contribution unPn icr rny 70
new bonds At price considerably over ana MA 1not'
the market Ha n thG xe1 nr cGsrS pronosei 10 be-
created appear to be considerably larger than in
the ligh; OF past earnings and experience the PROV
Instead Of per cent bonds. as provided IN tn'
p TSouG BE- ssc While ' for The Interest to be
rcr crcl the bOndholders should receive an egulFd-
lent in inifrnnanr nsrn~ me holIers
OF tn" lcbcniurcs to have sufficient representa-
I'm. noating drbt should b. liquidatei from the
proceeds Of adequate amount Of proposed nv, nrw
which shall be- offered 10 the shareholders ana bond
holders AT price rather below than above the
,,n1.r the guarantee OF underwriting syndicate
provision should also b. made To obtain the con
version on fair terms OF the rcorgnnizato prior
lien bonds into the ne" blnds - that II Sh",l D
come practicable to secure IN" new per cont bunds
so,,o"i,latsd per cent bonds the now per cent
bonds 10 he issued under general mortgage. To an
and improvements. and with adequate provision
Tor the taking up Of the underlying bonds. and the
issue OF I per cent bonds In their stead
The suggestions herein made VIII make the basis
for readusimcnt OF the company's Affairs not only
more lust and equitable. hut they Will. moreover II
carried into effect. better protect IN" shareholders
through the removal Of IN" danger OF another de-
fault which IL Is feared the Issu" ~ per cent
bonds ~ proposed under the publish 81 plan. might
make unavoidable in the not distant future ANY
pan now adopted for the readjusimen;. Of ;he
finances OF your company should seek. as iis hrst
object. 20 reduce the permanent charges - we'll
within the earning capacity Of the property as a.
make another default in the future improba-
buity Thus only can the credit Of your company
H.. established upon a hlgner plane than II has en-
ioycl IN the past tn" advantage both Of IT, bon
and share holders. we'll AZ to the American rail-
road credit In general