Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1896-04-03
NORFOLK e. WESTERN
Plan Of Reorganization Announced by
New York Committee.
STRONG FOREIGN COOPERATION.
Influential Aid on the Part of Lon
don and Amsterdam Committees
Secured - Distribution of new
stock.
stock.

NEW YORK, April 2.-Announcement is
made Of the plan OF the REORGANIZATION
| OF the Norfolk and Western railroad sys-
TEN. including the Roanoke and Southern
Railroad Company and the Lynchours
and Durham Railroad Company. the Ne"
York committee. undertaking TO carry the
Man into effect. consists OF Louis fitZ-
gerald. j. Kennedy Tod, George coppeli,
| A. II. H. Boisseyein, Robert Fleming, G.
Sligo de PothonIer. and Il. r. Hubrecht'
| They have secured the cooperation OF IN
nuentlal committees in London and Am
sterdam. The Mercantile Trust Company
will act as the depository Of all securi-
ties. Deposits will be received on April
9Th. and security-holders are requested TO
make their deposits not later than April
3Oth.
The plan provides for the issue OF ~2.-
10000 first consolidated mortgage per
cent. gold bonds. of which 81. 522 G75 will
be used 10 provide for certain disturbed
bonds, 81, 500. $50 win be received TO take
ND or pay undisturbed bonds Of the Nor
folk and Western Company. and the re-
mainder will be used for future improve
ments and new acquisitions.
The capitalization of the proposed new
company will consist OF 100000 4 per
cent. non-cumulative, adjustment-pre-
ferred stock, TO be distributed among the
holders of disturbed bonds, and s56,WoVJJ
common stock.
BASIS OF EXCHANGE.
The basis Of exchange Of the disturbed
bonds for new securities is as follows;
Norfolk and Western Railroad Company
lOO-year mortgage bonds, 81 IL per cent,
I'm first consolidated mortgage bonds, ana
70 per cent. in adjustment-preferred stock;
Maryland and Washington division bonds
20 per cent, in first consolidated bonds
and 67l-2 per cent. In adjustment-pre-
ferred stock. Clinch Valley division bonds,
80 per cent, in first consolidated bonds
and 70 per cent. in adjustme1t-preferred
stock: equipment mortgage bonds OF ISIS,
100 per cent. in first consolidated bonds
and lS per cent. in ACKNOWLEDGEMENTS
stock; 8 per cent. deDentures of 1892, lVt
per cent. in Observation-Disclosures Stock
Roanoke and Southern Railroad Com
pany bonds, 50 poT cent in first consoil-
dated bonds and 60 per cent. in ADJUST
ment-preferred stock; Lynchburg ana
Durham Railroad Company bonds, 80 per
cent. in first consolidated bonds, and %
per cent in adjustment-preferred Stock
The Norfolk and Western company 3
adjustment mortgage. per cent. bonds
will receive per cent. cash, 100 per cent.
I'm new first consolidated bonds ana ~
per cent In adjus tment preferred stock.
In addition 10 the foregoing, dep0ators
will receive at the time Of deposit sum
in cash equal 10 three months interest
on the new first consolidated bonds 10 be
received by them under the plan.
Depositing stockholders OF the respeo-
tive companies will receive common stock
in the new company 10 the following
amounts in consideration Of the pay
mont I'm instalments Of $3.50 per share
deposited: Norfolk and Western Railroad
Company. preferred stock. liz IL per
cent. do. common stock, 20 per cent
Roanoke and southern Railroad Com
many stock 70 per cent, and LynchDure
ana Durham Railroad Company stock
30 per cent
II is understood that the underwriting
syndicate Is almost entirely made up III
London ana Amsterdam, where all DG'
n few thousand shares Of the stock were
held. 1t is therefore expected that thert
will. in a comparatively snort time, be al
hast SjOOOn0O OF exchange aVallaDie
against this syndicate operation, mas
much as all the money realized VIII have
IN he used here. 1t Is stated thal the
floating debt Is nearly all held III this
country