The herald., 1895-08-27
The ERIE Reorganization
New Securities Issued to Cover
the Entire Line
DETAILS OF THE SCHEME
All Branches and Coal Roads to Be
Included
The plan Is Intended to Harmonic the
"a Hitherto Conflicting Interests OF the -
system-Ncw Bond List
Associated Press Special Wire.

Associated Press Speclal WIRE
NEW YORK, Aug. 26.-The Erie re-
organization plan has been issued by
Messrs. J. P. Morgan & Co., New YORK;
and Messrs. ]. S. Morgan & Co.. Lon
don. The plan contemplates the har-
monizing of interests hitherto more Ok
less antagonistic of the lines composing
the Erie system. An arrangement has
been made with the New York, Pennsyl-
vania and Ohio railway voting trustees
whereby, subject to ratification by their
benefciaries, they undertake to forecl, SO
and deliver the New York and Ohio
property subject only to the prior lien
equipment and leased line securities for
which reservation is made. The reor-
eanizers have also practically secured the
Chicago ana Erie. so that the Erie system
will be soidtied into one compact organ
ization from New York to Chicago.
New securities are TO be created on the
entire line from New York to Chicago
with all branches, coal roads, etc., as
follows:
First-$175, 900. 600 first consolidated
mortgage, 10O-year gold bonds. secured by
mortgage and pledges of all property ac-
ouired under the reorganization by the
new company. OF these bonds $40. 0oo' =
600 will be per cent prior lien bonds
and $40, 900, 600 will be 10 per cent
general lien bonds.
Second-$30. 600 900 first preferred per
cent noncumulative stock.
Third-$l6, 600. 900 preferred 4 per cent
noncumulative stock.
Fourth-$1O0 600, 900 comom.i stock.
Of the prior lien bonds $1,000, 900 are
reserved for enlargement and improves
ment OF terminal facilities, including
elevation of traffic. additional wharf IA
cilities at New York, reducing grades,
constructing double track and purchasing
additional equipment, to be used only
with the consent of the voting trustees.
OF the general lien bonds, $92, 66S, 600 are
reserved for the ultimate acquisition OF
all bonds and gold ST ocks now left undis-
turbed on various parts OF the system,
and $17, 900. 900 for new construction,
betterments. additions. etc., after 1897,
not over 81, 600, 900 to be used in any one
year. The reorganization converts into
new securities everything on the Erie
subsequent to the first consol; every
thing on the New York, PENNSYLVANIA
and Ohio, except $4,000 Az per cent
bonds and everything in the Chicago
and Erie subsequent to first tsmortgage.
eral IS per cent in general lien bonds and
So per cent in new first preferred stock.
The funded coupon bonds of 1885 get 100
per cent in new general lien ponds; 10 per
cent in new hrst preferred stock and 10
per cent in new preferred stocks. Erie
incomes get 40 per celt in new general
lien bonds and go per cent in new first
preferred stock; the present preferred
stock on paying assessment gets 100 per
cent on new second preferred, and the
present common stock on paying assess
ment gets 100 per cent new in new COM
mon stock. Nothing additional is given
Tor the assessment in either case. Chi
cago and Erie incomes get 100 per cent in
new second preferred stock. The new
general lien bonds are to bear intere st
from July l, 1886. at per cent per an
mum for two years and per cent there
after. In addition to its lien on all the
railroads now belonging to the Erie, the
new mortgages will further be secured by
lien on the New York, Pennsylvania and
Erie. together with various properties.
which latter. with the New York and
Ohio, are. we understand, worth some
$35, 100000 more. This will make the
new prior lien bonds an exceptionally
strong security and will also entitle the
new general lien bonds TO high rank in
the market. All the stock will be put in
the voting trust. The Erie reorganiz-
alton first lien and collateral trust sbonds
will be paid off. The assessment on stock
deposited by September 2uth is $l2 per
share on common and IS per share on pre-
ferred, payable in four installments when
called for at least thirty days apart. A
syndicate of $25, 000 900 in money has been
formed to subscribe for $50, 600, 900 of the
prior lien bonds of the new CONF pany
and to take the place and succeed to all
the rights of holders of preferred and
common stock of the New York Lake
Erie and Western Railroad company.
M ha not Il hot, IL 4
the assessment thereon.
j. p. Morgan d Co and ]. S. Morgan &
Co. charge $500, 900 for their services and
take com mon stock payment. Their cir
cular claims that under the plan of re-
organization the fixed charges, which
were 80, 400. 600 in 1894, will be reduced
to 81, $50, 600