The daily morning journal and courier., 1895-08-27
TO RE0RGANIzE ERIE R. R.
THE PLAN TO REHABILITATE THE
 SYSTEM MADE PUBLIO.
Lines to bo Consolidated Common Stock Assessed S1ea a Share, Prefer ed Ss.

NAAAA NiAh " ~ANSSAlAEstAAS ii'ea ~ AN an explanatory circular.
 The reorganization committee con sists of Messrs, c. Fl. Coster Louis Fitzgerald and Anthony J, Thomas
 The plan states that "the Erie sys- tenn is made up of the lines known as the New York, Lake Erie and Western, the New York, Pennsylvania and Ohio, and Chicago and Erie railroads. These two latter are operated by or for the Erie, upon it's guaranty that fixed proportion of their gross earnings shall be paid as net earnings without re- gard to the actual results of the busi- ness. This arrangement is inherently weak, and develops a conflict of in terests between three companies which ought to be close allies; and it also checks development and improvement
 The permanent removal of
 these troubles is most desirable, In order to remove them, and to estab- fish the community of interests above referred to, the plan proposes to con- solidate, or otherwise unite, as therein set out, the three properties in one new corporation,
 "An arrangement has been made with the New York, Pennsylvania and Ohio railroad voting trustees whereby, sub- ject to ratification by tleir beneficiar- ies, they undertake to foreclose and deliver the New York, Pennsylvania and Ohio property, subject only to the prior lien, equipment and leased line securities, for which reservation is made"
 It is understood that Messrs, J. P. Morgan & Go. have also practically se- cured the Chicago and Erie so that
 the Erie system, which is now a weak and disjointed affair, will Be soiidified into one compact organization from
 New York to Chicago, very much in the way that the same parties have
 united the former so-called Richmond
 Terminal system in the present South ern railway. No one has ever suppos- ed heretofore that this was possible in ! the case of the Erie lines, but it now | seems to be entirely practicable. l New securities are to be created on 1 the entire line from New York to Chi cago, with all branches, coal roads, etc, as follows: d) $175,O0o,000 first con soldated mortgage 100-year gold bonds.
 secured by mortgage and pledge of all property acquired under the plan of re- organization by the new company. Of
 these bonds $35o0O,0O0 will be 4 per cent. prior lien bonds and s140,000, 900 will be 3 to 4 per cent. general lien bonds; (2) $SO,000,0Oo first preferred 1 per cent. non-cumulative stock; (3) $16,- 0O0, 900 second preferred 4.per cent. non- cumulative stock; q ssloo o,Ooo,oOO com mon stock. t
 The mileage of the new company will be. I3s
 =, Miles.
 New York, Lake Erie and Vest ern proper. ..........,............. 5Ss
 New York, Pennsylvania and Ohio ....,.... ..........,...,........ 500 Chicago and Erie e.,....:r........ 250
 New York, Lake Erie and Western Auxiliary companies. ............. $50 ,99s with valuable terminal facilities at Jersey City, Weehawken, Buffalo, etc,
 and also one-fifth ownership in the
 stock of the Chicago and Western h. l Qland 1tdllfOdQ company.
 "Of the prior lien bonds s5,000,00 are
 reserved for enlargement and improve ment of terminal facilities, including l elevation of tracks, additional wharf ] facilities at New York, reducing grades, constructing double track and purchas- | ing additional equipment, to be used | only with the consent of the voting I trustees.
 l s'Of the general lien bonds, $92,668, ,000 I are reserved for the ultimate acquisi- \ tion of all bonds and guaranteed stocks Il now left undisturbed on various parts I of the system, and $17, 600, ,000 for new I Ieonstruction, betterments, additions, I etc, after 1897, not over $1,000000 to be l used in any one year.
 I The reorganization converts into new l securities everything on the Erie sub lsequent to the first consols, everything on the N. Y, F. and O. except SS,000000 I 41a per cent bonds, and everything on the Chicago and Erie subsequent to the first mortgage.
 The present Erie second consols get 75 per cent. in the new general lien
 bonds and B per cent. in new first pre- | ferred stock; the funded coupon bonds of 1885 get 100 per cent. in new general
 lien bonds, 10 per cent. in new first pre- ferred stock and 10 per cent. in new
 second preferred stock; Erie incomes get
 40 per cent in new general lien bonds,
 and 50 per cent. in new first preferred
 stock; the present preferred stock, on paying assessment, gets. 100 per cent.
 in new preferred, and the present com-
 mon stock, on paying assessment, gets i 100 per cent. in new common stock | Nothing additional is given for the as- sessment i'm either case. Chicago and
 Erie incomes get 100 per cent. in new
 second preferred stock.
 ''The new general lien bonds are to bear interest from July l, 1896, at 8 per cent. per annum for two years, and per cent. thereafter
 'In addition to it's lien on, the the rail-
 road now belonging to the Erie, the
 new mortgage will further be secured by lien on the N. T., P and o. and the | Chicago and Erie, together with vari-
 ous properties, which latter, with the N. Y, P. and O., are, we understand,
 worth some $S5, 900 or more. This 1 will make inc Fpan rrioY. Han bo01