The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-08-27
ERIE REORGANIZATION.
Plan Has Been Issued BY the Nor
GanS.

h Assueu By the Nor
NEW YORK, Aug. 26-The Erie reor-
9anization plan has been issued nv
Messrs. j. p. Morgan & Co, New York
ana j. 5. Morgan & Co., London. TIE
plan contemplates the harmonizine of
interests heretofore more or less antae-
olistlc, OF the lines composing the Erie
An arrangement has been made with
the New York and Ohio railway voting
trustees, whereby subject to rat. fication
Dy tnelf beneficlaries, they Undertake. to
564Ir;eciose and deliver the New York &
Ohlo property subject only 10 the prior
Heh equipment. and leased bns securities
1or WHICH reservation is made The reor-
ganlzers have also practl ally secured
t the engage q Erie, SO that the Ere sys-
tenn VIII be solidified into one compact
organization from New York to Chicago
New securities are to be created on the
entire i.ne from New York to CHICAGO
with all branches. coal roads, etc. as
follows: 49, "'
l-Sli5.0 100000 first consolidated mortgage
lou year gold bonds, secured by mort
gage and pledges of all property acquired
under the reorgan cation by The new con-
pany OF these bonds, $50, OOO. COO will he
Z per cent, prior lien bonds and $40
100000 will be 3 to per cent general lien
bonds 80
$50. 100000 first preferred per cent.
SIT, 100000 second preferred per cent
non-cumulative stock
4-$l0U, 10000 common stock
OF the prior lien bonds, $1,000 600 are re-
served for enlargement and Improvement
OF terminal facilities, including elevation
OF traffic, additional wharf facilities at
NeW ORR, reducing grades, construct
ing double track and purchasing adii-
tional equipment, to be used only with
the consent of the voting trustees. of
the general lien bonds, $92,66S, 600 are re-
served for the ultimate acquisition of all
bonds and gold stocks now left uudis-
turbed on various parts of the system.
ana SlLUO0,000 for new construction, bet
terments, additions, ETC., after 1897, not
over $l,c00,OOO to be used in any one year.
The reorganization converts into new Sc
curltieS everything on the Erie subse-
quent to first consuls, everything on the
New York p. K O. except $S,00g,C90 1 per
cent bonds and every thing on the Cnicago
i Erie subsequent to first mortgage The
present Ere second consulS get IS per
cent in general lien bonds and IS 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 preferred stocks Erie
incomes get 40 per cent in new genera
lien bonds and 60 per cent in new frs
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 in new common
stock. Nothing add tional Is given for tn
assessment in either case. Chicago ant
Erie incomes get 100 per cent in new
second preferred stock. The new gen
eral lien bonds are to bear interest from
July /. 1856, at per cent per annum for
two years, and four per cent thereafter.
In addition to its lien on all the railroad
now belonging TO the Erie, the new
mortgage will further be secured by lien
on the n. Y. p. & Erie. together with
various properties. which latter with
the n. Y. & o., are worth some S35.000
0G0 more. This will make she new prior
lien bonds an exceptionally strong Sc
curity and will also entitle the new gen
eral lien bonds to high rank in the mar
ket. All the stock win be put in a vot-
ing trust. The Erie reorganization first