St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-08-27
REoRGAuIZED ERIE
DETAILS OF THE PLAN FOR RE-
JUVENATION ANNOUNCED BY
THE MORGANS.
CENTRALIZING OF CONTROL.
ROAD FROM NEW YORK TO CHI
CAGO UNDER ONE MANAGE
MENT.
$4,000, 600 OF NEW BONDS.
Bankers Morgan Charge 100000
for Their Plan and Take 1t
in Common Stock.

NEW YORK, Aug. 26. - The
Erie reorganization plan has
been issued by J. P Morgan & Co.,
and ]. S. Morgan & Co., London.
The plan contemplates the harmonic
ing of interests hitherto more or less
antagonistic to the lines composing
the Erie system. An arrangement
has been made with the New York,
Pennsylvania & Ohio railroad, vot-
ing trustees, whereby, subject to
ratification by their beneficiaries,
they undertake to foreclose and de-
liver the New York, Pennsylvania
& Ohio property subject only to the
prior lien of evictment and leased
line services, for which reservation
is made. The reorganiZers have by
a contract secured the Chicago &
Erie, so that the Erie system will be
consolidated into one organization
from New York to Chicago. New
securities are to be created on the
entire line from New York to Chi
cago, with all branches, as follows:
!. One hundred and seventy-five mill
ion dollars first consolidated mortgage
100-year gold bonds, secured by mort
gage and pledge of all property ac-
quired under the reorganization. OF
these bonds, $50, 00O, 900 will be per cent
prior lien bonds, and S140000000 will be
3 to per cent lien bonds.
2. Thirty million dollars first pre-
ferred per cent cumulative stock
3. Sixteen million dollars second pre-
ferred 4 per cent non-cumulative stock.
4. One hundred million dollars COM
mon stock.
OF the prior lien bonds $50, 900 are
reserved for enlargement and improve
ment of terminal facilities, including
elevation of tracks, additional wharf
facilities at New York, reducing
grades, constructing double track and
purchasing additional equipments, to
be used only with the consent of the
voting trustees. OF the general lien
bonds, S92, 6SS,00G are reserved for the
ultimate acquisition of all bonds and
guaranteed stock now left undisturb-
ed on various parts of the system;
$17000,000 for new construction, better
mentS, additions, etc, after 1897, not
over S1,000000 to be used in any one
year. The reorganization converts into
new securities everything in the Erie
subsequent to first consols; everything
on the New York, Pennsylvania &,
Ohio except 100000 AZ per cent bonds,
and everything on the Chicago & Erie
subsequent to first mortgage
DETAILS OF DISTRIBUTION.
The present Erie second consols get
70 per cent in general lien bonds and
So per cent on new first preferred
stock; the funded coupon bonds of 1885
get 100 per cent in general new lien
bonds, 10 per cent in new first pre-
ferred stock and 10 per cent in new
second preferred stock; Erie incomes.
90 per cent in new general lien bonds
and CD per cent in new first preferred
stock; the present preferred stock on
paying assessment gets 100 per cent
in new second preferred and the pres
ent common stock on paying assess
ment gets 100 per cent in new common
stock
Nothing additional is given for the
assessment in either case. Chicago &
Erie incomes get 100 per cent in new
second preferred stock. The new gen.
eral lien bonds are to bearinterest from
Jan. !, 1885. at per cent per annum,
for twenty years, and AZ per cent
thereafter. In addition to it's lien on
all the railroads now belonging to the
Erie the new mortgage will further be
secured by lien on the New York,
Pennsylvania & Ohio and the Chicago
& Erie. This will make the new prior
lien bonds an exceptionally strong
security, and will also entitle the
new general lien bonds to a high rank
in the market.
All the stock will be put in a voting
trust. The Erie reorganization first
lien and collateral trust bonds will be
paid off. The assessment in stock de-
posted by Sept. 20 is So per share on
common and 50 per share on preferred,
payable in four 1nstallments when
called for, at least thirty days apart
A syndicate of $50, 000,0G0 in money has
been formed to subscribe for SIS, COO, 900
of the prior lien bonds of the new COM
pany, and take the place and succeed
to all the rights of holders of pre-
ferred and common stock of the New
York, Lake Erie & Western Railway
company, who shall not deposit their
stock and pay the assessment thereon
]. P. Morgan & Co. and j. S. Morgan
& Co. charge $780, for their services
and take common stock in payment.
The circular claims that under the
plan of reorganization the fixed
charges. which were 50, 1905 900 in 1894,
will be reduced to $7,S50,0
Now Passenger Alone.
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