The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-08-27
ERIE REORGANIZATION.


New York. Aug. 1s.-The Erie reorgar-
fzstior plan has been ispued by MeSsrs. j.
j.. Morgan * Co, New York. and Messrs-
J. g Morgan A. Co. London. The plan
contenplateS the harmonizing Of the in
tereStz. hitherto more or less antagonistic
Of the lines composing the Erie system
An arrangement has been made with the
New York. Pennsylvania & Ohio railway
voting trustees whereby. subject 20 rati-
fcatton by their beneficsaries, they under
take 10 foreelose and deliver the New
York & Ohio property, subject only 70 the
prior lien equipment and leased lines SCI
curities. for which reservation r. made
The reorganizers have also practically Sc
cured the Chicago e. Erie so that the Erie
system viii be solicited into one compact
organization from New York 20 Chica-
GO New securities are 20 be created on
the entire line from New York 20 Chica-
70 with all the branches. coal roads, etc,
az follows:
First-One hundred and seventy-ave
million dollars first consolidated mort
gage iaH-year gold bonds. secured by
mortgage and pledges Of all property ae-
duired under the reorganization OF the
new company. or these bonds 81 900 ca
viii be per cent. prior lien bonds. and
si4oooo.oro Will be to per cent general
lien bonds
Second-Thirty million dollars first pre-
Third-Sixteen million dollars second
preferred per cent. non-cumulative
stock.
Fourth-One hundred million dollars
common stock
or the prior lien bonds, sso00nna are re-
served for enhancement and Improvement
OF terminal facilities including elevation
or track. additional wharf facilities at
New York, reducing grades. constructing
double track and purchasing additional
equipment TO be used onlv with the con-
sent of the voting trustees or the gem
eral lien bonds. So. ess 600 are reserved for
the ultimate acquisition OF all the bonds
and gold stock now left undisturbed on
various parts Of the system, and SIT oOa 600
for new construction. bstterments addi-
tons. etc, after 1897. not over 81 600 600 to
be used IN any one year. The reorganiza-
ton converts into new securities every
thing on tho Erie subsequent TO first con-
soils; everything on the New York Penn
syivania & Ohio except s.. 900, 900 ~ per
cent bonds, and everything on the Chi
cago a. Erie subsequent to the first mort
age. The present Erie second consols gen
eral get % per cent. in general lien bonds
ana % per cent. in new first preferred
stock. The funded coupon bonds OF 1855
get 100 per cent. in new general lien bonds
10 Der cent in new first preferred stock
and 10 per cent. in new preferred stocks
Erie incomes get ~ per cent I'm new gen
eral lien bonds and 90 per cent In new first
preferred stock. The present preferred
stock on paying an assessment gets 100 per
cent on second preferred, and the present
common stock on paying an assessment
gets 10 per cent. I'm new common stock
Nothing additional is given for the assess
ment In either case. Chicago & Erie in
comes get 100 per cent. I'm new second pre-
ferred stock. The new general lien bonds
are to bear interest from July l. 1896. al 3
per cent. per annum for two years, and
per cent thereafter In addition TO its
lien on all the railroads now belonging TO
the Erie. the new mortgage will further
be secured by lien on the New York
Pennsylvania a. Erie. together with it's
various properties, which latter with the
New York & Ohio. are worth some s35. COO
600 more. This win make the new prior
lien bonds an exceptionally strong secur-
ity. and will also enttle the new general
lien bonds to high rank In the market.
All the stock VIII be put In a voting trust
The Erie reorganization first lien and col
lateral trust bonds will be paid off. The
assessment on stock deposited by Septem-
Der % Is si2 per share on common and s.
per share on preferred. payable in four
installments when called for at least thir-
~ DAYS apart. A syndicate of $25. 900. 600
IN money has been formed TO subscribe for
Sl5,00o,oo0 of the prior lien bonds of tho
new company and to take tho place and
succeed to all the rights of holders of pre-
ferred and common stock OF the New
York. Lake Erie & Western Railroad Com
pany. who shall not deposit their stock
and pay the assessments thereon
J. j.. Morgan & Co. and j. S. Morgan &
Co. charge 100000 for their services and
take common stock in payment. Their
circular claims that under the plan of re-
organization the fixed charges which were
$4,000 in 1894. Will be reduced TO s., $50 600