The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-01-26
CAPE FEAR g. YADKlN VALLEY
Bondholders Reject the New York Re-
organization Plan.

Bondholders Reject the New York Re-
organization Plan.
4 meeting of the holders Of certifi-
Gates representing Cape Fear & Yadlin
Valley bonds deposited under the
agreement appointing the Baltimore
Committee (Wm. II. Blackford, Chair
mani, was held in Baltimore Monday
to consider the plan of reorganiza-
ton dated October 81, 1895. This plan
aims to harmonic the interests of all
the bonds, A, b. and G, and to preserve
the integrity of the system as dis
tinguished from the plan of the New
York Committee C. Adolphe Low,
Chairman), which is primarily in the
interest of the A bonds. At the meet
ing the New York Committee voted
majority of the a" certificates against
the plan, which was accordingly de-
clared not adopted, the agreement re-
curing the assent of majority of
each class of certificates to render the
plan operative. The vote in detail for
the Baltimore plan was: AS 394, BIS
497, C's 646. The vote against the plan
was: AS sos, BIS 80, C's Is.
Upon the announcement of the result
Mr. John X. Cowen, counsel for the
Baltimore Committee, requested all
those asserting to the the Baltimore
plan, and who had not already signed
the agreement, to do so at once, as the
Baltimore Committee proposed to
push its plan in court, regardless of
the non-acquiescence of ''A' interests.
THE TWO PLANS PROPOSED.
The plan Of the New York commit
tee provides for the foreclosure sale Of
the division covered by the A bonds,
and lease Thereof for 100 wears to the
Southern Railway Company at rent
sufficient to pay 4 per cent interest on
81 100000 of new 100-year bonds, as
also the taxes and corporate expenses
the Southern Company to own the
entire common stock of the new COM
pany, and to pay as an additional con-
sideration S225,000 of its own pre-
ferred stock For the A division at
foreclosre sale the New York Com
mittee will, if necessary, bid at least
the sum of $1,050,000. The New York
plan further provides that
I'm case the Southern Railway Com
pany should become the owner of the
seventy-fve miles or Whereabouts Of
said Cape Fear d Yadkin Valley Rail
road upon which the ''B' bonds of the
latter company are a first lien, it is
agreed that if the Southern Railway
Company to select the said seventy-fve
miles of said railway may be conveyed
to said new railroad corporation at the
same time with the said "a" division,
and in such case S450,00 additional of
said first mortgage bonds shall be
created and issued To the Southern
Railway Company as the considera-
ton thereof, making the total amount
of the first mortgage bonds to be is
sued by said new corporation i'll that
event 81 $4,000, par value, thereof, all
of such bonds to be equally secured by
a first mortgage covering all the prop
erty OF said new railroad company,
including both the property purchased
by the committee at said foreclosure
sale and the 3D. division of said Cape
Fear & Yadkin Valley Railroad trans
ferred to such new corporation by the
Southern Railway Company"
In like manner if the division cover
ed by the &C" bonds is conveyed TO the
new company 100000 of the new bonds
may be issued thereon, the total bonds
i'm that case to be S2,350, 600, all equally
secured on the entire property, and all
to have interest payable as rental UNI
der the lease to the Southern Railway
Company.
Until and including January 10.
1896. the New York Committee offers
to purchase the b and { bonds with
all unpaid coupons attached at the
price of so cents on the dollar of the
par value of the j bonds and 40 cents
on the dollar of the par value OF the
G bonds. OF the 81 800 900 of a. bonds
those asserting will each receive APP
parentIv $1,000 first IS of the new
company and $3.50 in Southern Rail
way preferred stock tout of the $225.-
000.)
The Baltimore plan,i it will be remem-
bered, provides for the issue of $500
900 prior lien bonds for improvements.
reorganization purposes, etc. and OF
Sc, 100000 general mortgage lO0-year
bonds bearing 3 per cent interest for
four years and 4 per cent thereafter
series A to receive $1,000 in the new
generals and $500 in first preferred
stock and 5000 in common stock.Series
r and C bonds alike to receive $3.50 in
new generals and 5000 in first preferr-
ed and $500 in common stock. Mr..
Blackford at the meeting submitted
proposition of President r. Curzon
Hoffman, of the Seaboard Airline, to
guarantee the interest on all the bonds
issued under this plan and to give the
net earnings over to a dividend on the
preferred stock
The Baltimore Committee says:
/ "If bondholders will come forward
at once and sign the agreement, the
committee feel sure that they can pre-
serve the property and restore it's val