New-York tribune., 1903-04-14
ACCEPT FIDELITY PLAN.
TROLLEY COMMITTEE 4CT.
Reorganization of Traction and
Light Com pdnies assured.

trjc light companies taken at Jersey City
Yesterday. when the committee OF six made its
official report. which Is to be submitted at once
70 the stockholders OF the companies involved
These companies are the North Jersey Street
Railway Company. the Jersey City, Hoboken
and Paterson Street Railway Company, the Or
ange and PassatC Valley Railway Company the
Elizabeth. Plainfeld and Central Jersey Railway
Company and the United Electric Company of
,leu-Jersey- The acceptance Of the plan and
conditions Of the reorganization, II is thought. IS
certain.
The committee which submitted the official
report yesterday is composed OF A J. Cassatt
president Of the Pennsylvania Railroad Com
pany: John / Waterbury. president Of the Man
haitian Trust Company: John D. Crirn'nins
president Of the New-York City Trust Company
Z Z c Young. president Of the North Jersey
Street Railway Company: Randall Morgan. vice
president Of TIE United Gas and Improvement
Company. and Thomas y. McCarter, Attorney
General Of Ne,y-JeTsey.
After accepting the report Of the sub-com-
ruirtee in which il was recommended that the
proposition submitted by Thomas l. Nevins be
declined, as told in The Tribune yesterday. the
committee accepted the proposition which was
submitted by The Fidelity Trust Company. Of
Newark y J The Ffdelity's offer is TO ''cause
z new corporation 10 be formed. with au-
thorized capital stock Of S25.oo0.000 par value,
os which al this time there shall be issued S1O,-
0goOgO at par for cash. which sum will be
6aru-rirten by the Fidelity Trust Company The
bylaws OF the company shall provide that
the remainder OF said capital stock shall be
only issued for cash al not less than par The
new company viii purchase the shares Of stocks
of the companies named above. and in pay
-nen1 therefor VIII issue TO shareholders of said
conloanies perpetual interest bearing certih-
Gates. secured by general pledge Of all shares
purchased with them" on the following basis:
For North Jersey. 20; Jersey City. Hoboken and
Paterson. 50; Elizabeth, Plainfeld and Central
Jersey. 80: Orange and Passaic Valley. 30. a
cash pavment Of 1 per cent on the par value OF
said certificates when issued will be made.
The amount paid upon these certificates"
the report continues shall be as follows;
First year. . per cent wiz. per cent paid as
above and per cent payable 1T the end Of the
first interest year.; second year. per cent, pay
able seni-annuaIly; third year, 21z per cent,
ravable senli-annually; fourth year, ) per cent
pavable serli-annuaIly; fifth year. 31A per cent,
pavable serai-annually: sixth year. per cent
rsvable serni-annually; seventh year. 412 per
rent payable semi-annually: eighth year, per
cent. payable senli-annually; ninth year. 312
-,a- cent. payable seni-annually; tenth year and
thereafter. 6 per cent. payable semi-annually
Interest shall begin TO run said certificates
4-or, the first day Of the month following the
date when the plan shall become operative
The report continues:
Z IS proposed that the new company shall
-oTer 10 the shareholders OF the Unlteo t1leclEIc
COu1pany Of New-JeTsey, for STOCK OF saio Gun ~
pany delivered TO IT, nke Ger 81 $40 e4 par
OF said certificates. for each share OF STOCK o.
said company sold and deIlFeTeo .. 10 to1i 81 en a.
also proposed that the new company SIolt
7asz-or 10 acquire by lease the properties OF the
following named companies Essex ana huusoIA
cas- Company, Hudson County Gas Cornpany'
Pa and
r7anz- South jersey. Gas. Electric ana 4faCtioIL
Cornpauv and negotiations TO that eIld are no"
ir r~ogress II NAV also be desirable for the
corTparv 70 acquire other similar proper Les-
Eight million dollars of stock OF Iae ne" Coi.
49, viii forthwith be offered for subscription
a. mar pro rata TO the holders Of the certlhcales
above referred 10 and TO the stoc khocers o. Ins
cor7panies last above enumerated ne rlueIIeS
r~1,e- CoYonanv and others acting in co-opera-
ton with Il VIII agree 70 retain large
il the new company for period OF tllne AoI 4000
than five years.
Speaking Of the completion Of the coholIloIS
OF the reorganization by the new company one
20 he most prominent members Of the Joint
committee said 100000 Of new money VIII
60 into the property and viii be used for paying
debts. making necessary improvements to prlng
the property up 10 the highest state or elnclehcS
and 70 meet other requirements This SIo'eoo'-
60 does not go in lien ahead OF present
securities NO new obligations can he salo'
BE created by the new company The author
lied capftaI is S25.OO0000. The amount issued
IS S100e0oeO in cash. This leaves S15,OOoOo
which may be issued al not less than par Wheh-
ever the new company may think best 10 90 So
The ras companies come in on a leased basis
The traction and electric light companies come
IN OF perpetual interest bearing certificates.
All reports 20 the contrary, this member Of the
committee said he had not heard of objections
upon the part Of any company named to accept
the conditions now proposed in the committee
report We are" he continued, squeezing
S4G00G00O Of water out Of the old companies
and putting in S10OO0.oo0 Of real money
member Of the joint committee said: IN
GouotedIv the people who put UP Slooeooo IN
casa Wlu manage the property an 80 as VI
OF the strongest financial interests In New ioLh'
New-Jersey and Pennsylvania VIII coflIoi lHe
reorganization Of the old companies lhLo q ne"
company l may say an estimate OF Iile ad-
Vantages 10 the sh1-eholdeTs whlcn ec tiIs 80,
ganzation will be that If s3c01ooo n2d oee.- s
spent three wears ago in improvements anu +oi
Other necessary purposes. whereby pubic cor
fdence and support would have been galneu' lES
properties included in the reorgaillzflIon e 49, 49,
be now paying divioends. instead OF OeiI4S ~ Ia
ucally bankrupt -,-- viii
As thc report says the new company WI
pay the non-funded Indebtedness OF the stfeIfi
street railway companies. aIflounliii-5 aEt - +ba
r.,atelv 70 81 800 600 and VIII also pa! -
aroor,57re necessary to cover the iTnEnealate &c
quirerrerts Of said companies. aggresatlI-e, "P
r,~7xfrra-elz- 81 10000, making loIaI "a
SG0S5OED for which payments 1Ie ~" y nav
narz viii be entitled 70 receive, as Tar az nc
he honds Of said companies issued OF 10 .. Dt
s1s5 = arrborized by their respective eHlstiiAS
Uaortgages- -, r.- c+rae+ Rail
The directors Of the North jersey SCl f1f
vrsz- f-orr7r,ar1- Yesterday received me resls-i
rsor ~ me -ice-president and general iiaI-a
David yorrg IL is thought that Nj. iou7 49,
viii have responsible place WIN liie iie" 00