New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-08-27
NEW LIFE FOR THE ERIE.
Frs HAS BEEN OBTAINED.

AN UNDERSTANDING THAT THE
CONSENT OF THE HEAVY HOLD
Frs HAS BEEN OBTAINED.
w.. rlan for the reorganization of the Erie system
- ,ssued simultaneously yesterday by J. F. Nor
- Co. of this city. and J. 5. Morgan & Co.. of
rdon the depositaries. The pamphlet contains
.,-,v-three pages. and Is acct mpanied by an ex-
,.ratory circular. The agreement made on August
~ between c. II. Coster. Louis Fitzgerald and
,,,nonv j. Thomas. constituting the Reorganization
Committee with the holders of stocks bonds of
,ns companies OF the system. is also published
The depostaries declare that the plan proposes TO
~a,,e new company which shall absorb the Erie
- lis various branches. a.so its leased or con-
,ro.ied Ines the NewYork. Pennsylvania and Ohio
"a ,he Chicago and Erie. thus uniting the control
- the entire system in one corporation as through
,,oa from New-York TO Chicago To carry out the
lan the following securities will be created Que
s,a-sd and seventy five million dollars first consoii
so,es mortgage hundred-year god bonds.
.,-ed hv mortgage and pledge OF al property ac-
o,-sd under the pan OF reorganization by the new
,,snv OF these bonds. 1000 Will be per
.,, nrior lien bonds. sl40.0oo0oO will be TO per
.,r, general lien bonds 100000 first preferred
- cent non-cumulative stock. sl6oooco second pre-
serrsd per cent non-cumulative STOCK ana si"oV'-
CO.. common stock
HOW THE BONDS ARE MADE Up.
., Tho nrior lien bonds sl4 100000 will be used to
. as mart OF the purchase price OF the New-York.
psnnsvlvania and Ohio S5.oco.Ooo will be sold to
sv-scate comprising 81. 100000 in money, wnch mas
hes~ formed for the purpose and which WILL succeed
:, o.. the rights OF those holders Of the preferred
80 ,o,,-oon stock OF the New-York Lake Erie and
vros,e-n Railroad Company. who shall not deposit
mar stock and pay the assessments thereon of
besa prior lien bonds also 100000 are reserved Tor
A., srgenncnt and Improvement or terminal iaClnues
,r.iuling elevation OF tracks additional whari iacN
&c. a, New-York. reducing grades. constructing
nd additional equipment
., 10 used only with the consent OF the voting tTus
ICES The new general lien bonds will bear interest
from July l. 1886. at per cent per annum TOT TWO
wears and per cent thereafter
The assessments the stock OF the Ne"-1 orK
AXE Erie and Western Railroad Company VIII be
e. share on preferred stock and SIS snare on
common stock a reduction of 81 and 50 being al
,,os5 ID sepostors who deposit their stock ana pay
me first instalment of g and $ respectively oy
september 20.
CASH WHICH THE PLAN CALLS FOR.
The cash requirements the plan are s2' ci'6ss as
l,a,nr deb, receivers certificates sl 800 900
Collateral trust bonds (Ere) 70 be paid on az
ITO per cent pursuant 10 the terms Of the e-S 4oo
slsan GTs first lien bonds be paid ZOO
Early construction requirements 'system and qq- oss
Car trusts for three years OBSERVATION-DISCLOSURES. 20oo
SOS obs ess
The depostaries say that the fixed charges Oh ','e
r,a svste for 1894 we're 50 10000 while under the
new plan they will be S.S0co. making saving VI
SgNoco a year For the first two years AFTER re-
o-ean,zation they will be further reduced py sS"-
noa since the new general lien bonds VIII lor u''a'
perloa bear per interest. Moderate eNpenu-
,,-ss in cani,al account are also contemplate Inc
dsnostaries say: The absence OF any such pro
vision for capital expenditures has always ose
Of the chief sources OF embarrassment OF .nr s n
system and has made Il Impossible lot lha' So
~ keen IN with its competitors, or TO anapt IsS
~ handling business with that economy "l.0H ~
cbaracter OF its traffic renders essential Il sa''S
factory results to be secured . 90 ,ss-
The real net earnings OF the Erie system loI Ieo-
$50. are nut down leaving an average SUI pre
80 .he M " fixed charges OF about Na.""" Nea::
su@cient for the full cent DIVIDEND on NJ Il. ~
nreferred stock and nearly per cenI on ny nv. ~
md and so the depositaries say: w nIle no. '
tending 10 imply that any return 70 former
earninSs can be Immediately realized we mar u ne
<o,egofnr statement TO show tnat me seVultnos u
the new company will have intrinsic va-ue tive us'
80. The CONTAMINATION is SOUND ana cohSeiN
y. ts understood that the plan mas Deeii ~.
~ ~ the large interests here and ABROAD ana 80
a. Ti he pushed rapidly 10 a CONCLUSION ~ 80, We
.,ar raceysd in the Street Yesterday ne n'ea7 .
W. ", ~ rev company will be 1898 miles. oeing mae
o. o. ~ 53s miles OF NewYork. Lake Erie ana W
up , 500 ~ New-York Pennsylvania ana ONO, ~ o.
|hi~ae and Erie and $50 miles OF me I.r,
Ranches of the New-York, Lake Erie anu WESTERN