The Indianapolis journal., 1895-08-27
WAR ON IN EARNEST
PENNSYLVANIA OPENS ATS FIGHT
AGAINST UNFAIR COMPETITORS.
Excessive Commissions Must Go or
Rates VIII BE Cut 10 the Behe-
Erie Reorganization scheiRe.

by the Pennsylvania 10 meet the under
handed methods its competitors have been
practicing Of late to secure West-b0und
business The Pennsylvania, first of al.
called upon the Baltimore & Ohio and 9TH
er competing lines to withdraw their So COM
mission on tickets to Chicago and 81 on
Cincinnati tickets. They were notified that.
unless this promptly done, the Penn
sylvania would announce fat rate of 80
to Chicago. instead Of the present so rae.
This was followed loy instructions TO all
ticket agents and conductors TO honor at
once thefsreturn coupons Of the knights
Templar. half-pate tickets. or course. this
knocked passenger rates into a cooked hat.
for the tickets only began to come to New
York on Saturday. On Tuesday. according
to the printed tickets, the return coupons
will be good. The general Eastern agents
at once went into conference with their SUI
periors. Those who were out of town were
notified by telegraph. and instructions were.
asked for The trouble over commissions
Is due TO the fact that lines running to
Western points via Southerly routes, have
been scrambling for business. All pay COM
missions with the exception OF the Penn
sylvania. The latter line has been con-
templating such drastic action. A 50 rate
ized by the differential lines, after deduct
Ing commissions. and would, Of course, at
tract all the business to the Pennsylvania
only competitor. The Knights Templar'
trouble owes its source TO the fact that the
seresment TN made IN Febyuarv LAST reouir-
ing tickets to be signed and stamped at
Boston in order to make them good, return
ing. Furthermore, they were to be good
only till Sept TO- unless deposited in Bos-
ton, when a limit to Oct, 3 could be had.
Both these provisions were broken. Accord
ingly the Pennsylvania went all hands one
better yesterday Not only will it's tickets
require stamping or depositfng up to
Oct. 3. but they are good returning at once,
to Boston. conductors have been in,
structed to honor tickets which have been
used only as far as New York. and to
simply take up the Boston coupon
Erie Reorganization Plan.
The Erie reorganization plan has been
issued by Messrs. j. P. Morgan & Co.. New
York, and Messrs- j. s. Morgan & Co.. Lon
don. The plan contemplates the harmonic
ing of interests. hitherto more or less an
tagonistic. of the lines composing the Erie
system An arrangement has been made
with the New York. Pennsylvania & Ohio
railroad voting trustees whereby, subject to
ratification by their beneficiarfes. they
dertake to foreclose and deliver the New
York. Pennsylvania & Ohio property. sub
ject only to the prior lien, equipment and
leased line securities. for which reservation
Is made. The reorganizers have also prac-
tically secured the Chicago & Erie, SO that
the Erie system will be solidihed, into one
compact organization from New York 10
Chicago. New securities are TO be created
on the entire line from New York 10 Chi
cago. with all branches. coal roads, ETC., as
follows:
-First-sl75. 10000 first consolidated mort
By mortgage and pledge OF all property ac-
CURED under the plan of reorganization by
ooe Win sT be prieT ien 0nf bonds and
AD'ooooOo win be 3 to per cent. general
second sso.coeoco hrst preferred 4-per-
cent. noncumulative stock
Third-&I6 600 900 second preferred 4-per-
cent noncumulative stock.
Fourth-$1O0,0 100000 common stock.
OF the prior lien bonds, $5,0o0000 are re-
served for, enlargement and improvement
OF terminal facilities. including elevation of
tracks. additional wharf facilities at New
York. reducing grades, constructing double
tracks and purchasing additional equipment
to be used only with the consent of the
voting trustees OF the general lien bonds,
So. SOS 900 are reserved for the ultimate ac-
QUESTION of all bonds and guaranteed stocks
now left undisturbed on various parts of the
betterments, additions. etc. after 1897. not
over <,000,000 to be used In any. one year.
The reorganization converts into new se-
to the nrst consois, everything on the New
York, Pennsylvania & Ohio except IS, coo
~ per cent bonds. and everything. on the
Chicago & Erie subsequent to the first
mortgage. The present Erie second consols
get % per cent. in new general lien bonds
and 50 Per cent. in-new first preferred stock; /;
the funded coupon bonds of 1885 get 100 per
cent. In new general lien bonds, 10 per cent
In new first preferred stock and 10 per cent.
In new second preferred stock; Erie in
rraf In lfor.
bonds and so per cent. in first pre-
ferred stock. The present preferred stock,
on paying assessment. gets 100 per cent in
new second preferred. and the present COM
mon stock. on paying assessment, gets 100
per cent in new common stock. Nothing
ser CASE Is heago Erie ge a
100 per cent. in new second preferred stock.
The new general lien bonds are to bear in
terest from July l. 1896. at per cent. per
annum for three years and per cent
thereafter
IN addition to its lien on all railroads now
belonging TO the Erie, the new mortgage
will further be secured by Hen on the New
York. Pennsylvania & Ohio and the Chicago
& Erie, together with various other prop
Pennsylvania, 4 Ohio. II is understood
worth some $S5000,0c0 more. All the stoc'
will De put In a voting trust. The Eriesor
bonds Will be paid of. The assessment
stock deposited by Sept. 20 is si2 per shs
on common and s per share on PREFER
for. at least thirty days apart.
A syndicate OF $500 900 In money
been formed to subscribe for SIS. .oS0 900 OF Ii
prior lien bonds of the new company. anG
to take the place and succeed to all the
rights of holders of preferred and common
stock OF the New York, Lake Erie & West
ern Railroad Company. who shall not de-
posit their stock and pay the assessments
thereon j. p. Morgan e Co. and j. :. Nor
gan q Co. charge $4,000 for their services
and take common stock In payment. The
circular claims that under the plan of re-
organization the fixed charges, which were
8.4oo0o In 1894, will be reduced to ST. $4,000
New Southern Freight Association.
Conservative railroad officials of northern
through lines. as well as of Southern roads
are much relieved that new association
has been formed. and on a permanent
basis. seemingly. or the old Southern Rail
way and Steamship Association, (which for
the last two years has been a rate dis.
turber. The Commercial Advertiser says al
the meeting In New York last week all the
important Southern railroad and steamship
Interests were well represented and the
agreement which is TO bind the members
Of the new association. was carefully con.
sidered In every detail. after which IL was
signed by all present. 1t is the genera
impression that this agreement will be
signed by all those interested before the
time for the next meeting. A committed
OF five was appointed 10 nominate officers