Morning journal and courier. [volume] (New Haven [Conn.]) 1848-1894, 1894-04-24
NEW YORK AND NEW ENGLAND.

NEW YORK AND NEW ENeSAANOs
Two Hundred Thousand Dollars
Paid for the Success of the Re0r.
ganIzation-More About the Plan
OF denomination.
Bosror, April 2S.-The Boaton News
Bureau says: "The underwriting on the
New York and New England reorganiza
ton has been oversubscribed. The COM
mission on the underwriting is per cent,
making $500. 900 which the reorganization
committes will pay for insuring the suc-s
cess Of it's plan.
This amount will be taken from the price
Of the stock, 30 that the New York and
New England Railroad company will re.
oslve In cash 80 psr share net for its new
common stock.
There IL no underwriting upon the pre-
ferred stock, which, It is assumed, the new
stockholders viii take, as they get new pre-
ferrsd stock for the amount of their assess
ments; that is, holder Of 100 shares of
preferred stock pays $25 per share, and
gets In exchange for his 100 shares 1875
shares of the stock In the new company.
The reorganization committee reported
that II desired 50, 000, 900 to pay the pres
emit debts of the company and s., 000, 600
for working capital and Improvements,
and this will be amply provided for in the
present plan, although the New York and
New England second mortgage bond
holders will be paid 40 per cent. of the
amount of their bonds In cash; new bonds
will be given them at 80 and 95 for go per
cent. of their holdings.
OF the new 8 per cent. mortgage for
81, 500, 900 there will be reserved SIC, 900,
sc, 000, 900 first mortgage, or to meet the
same ct its maturity in 1905.
To pay of 60 per cent. of the 50, O0O. 00O
second mortgage bonds with bonds even 80
Jew ~ 80 viii require s, 1888, 600. These
deducted, there Will remain "a Ice, 600 OF
Of the consolidated mortgage bonds In the
treasury of the new company.
The IS per cent. assessment upon the
$751;, 600 preferred stock will yield 1854,
$50 cash, and for this assessment and the
present stock the issue of preferred stock
viii be s., O0O, 900, of which, however
$228, 600 will be retained in the treasury.
The s.. S00, 900 net from the assessment
on the common stock added to that from
the preferred stock, makes 81. 754, 900 cash
realized. OF this 50, 000, 600 will be paid
| for 40 per cent. of the IS, DOC, 600 second
mortgage bonds, leaving So, zoe, GOO cash In
the treasury, and 81 166. 600 of new 5 pei
cent. bonds, thus amply covering the re-
| auirements of the reorganization commit
| tee.
None of the leases will be In any way in
| terfered with. The new assessment will
| probably be called In monthly installment
Of 81 each. 49,.
The plan of the committee ia to put tn
New York and New England upon SOLE
basis, preserve the system entire, and built
it up rather than subtract from it.
The Goldsmith suits will be Withdrawn
and everything will be harmonious legal,
/ and financially for the propeTty.
Among the Underwriters are: Moore
Schley, Austin Corbin, Dominick & Dick
erman, Charles Read & Co., ]. F. Sinnot
and Spencer Erwin of Philadelphia, T. J
Coolidge Of Boston, Homans & Co., F. T
Adams & Co. and F. 81. Prince. Stats
tics which have been made up by official
of the New York and New England sho,
81. Csc, 900 of the company's business Il
local, and that the company can earn q
least 81, soc, 900 net under almost any poi
sible circumstances.
There are 750 miles Oh the New Yorl
and New England railroad, which contrib
ute to make up it's gross earnings Q
81, 900 per mile upon the whole system.