New-York tribune., 1908-04-22
TN AID OF LONDON TUBE
Plan FOR READJUSTMENI
.SDeuers TO Assist IN Placing Com
Dauu on It's Feet 4gd'n.

rrba rIan for the readjustment or the ihaheos
of the underground Electric Railways ooinPanS
Of London. of which company sir ,'eoIs s.
the managing director, was appoih'eo -
last Wednesday, was made pupll' i"' msa
some Of the details have already been puoilsnea
:, dienatcbes from London. The circular IS au-
dressed to the shareholders and the hoiuei %
the Il 1000 900 per cent proht-sharlhg seIueU
notes
Tho share capitaI is 100000, and under the
plan no assessment is asked from the shafehoio-
ars OF the note issue f359926s has been placed
in Europe and s16550. 600 in the United states
A half years interest on the notes when mature
on June /. was payable on December /. 'he
amount due being f175,00o. besides other claims
of considerable size: but the company was unaoie
IA meet these obligations at the time. The SpeE-
ers purchased almost all of the coupons al Iace
value and have not presented them for payment
and they also assisted The company TO raise SUI
fcient funds for its more pressing requirements
The plan provides that the company VIII
pledge in addition 10 the f11000,00O face value
of stocks and shares now held by the bonooh d
Westminster Bank Ltd. trustee for the note
holders an additional $4,000 nominal. OF tuoe
shares and the equity in the power house, and
issue against this total of f14,50o,o00. nominal
of shares 81 600 prior lien 3 per cent bonds
due 1920, e. 100000, at AZ per cent bonds Due
1888. and 70. 100000 per cent income bonds, due
I94S.
The prior lien bonds are TO be sold to speyer
Co. and their friends. who also agree TO provide
up to 100000 for any possible deficiency IN hNed
charges in the next few years, this special inter
fund being supplied by the purchase by the
Speyers not than f2O0eo0 of the AZ per
cent bonds and 100000 of the income bonds. The
100000 prior lien bonds have been underwrltten
by the Speyer interests at SO, conditionally upon
the plan being accepted and will be offered 10 the
noteholders and shareholders at that figure
Deposits of TO be made in New Nork
with the Guaranty Trust Company and in London
with the London and Westminster Bank, Limited
The present noteholders are receive 40 per cent
in A. per cent bonds and 20 per cent in per
cent bonds. giving them Sll00 in bonds
for each s. 600 note. The ncteholders will by ac-
ceptng the income bonds. have the controlling
voice in the mana cement. the income bonds will
be entitled The circular also states that
the voting trust will be dissolved and that it Is
intended to proceed with the scheme under the
joint stock companies arrangement act Of 1876.
For this purpose the company must be temporarily
put into voluntary liquidation.
The plan is strongly recommended by the board
Of directors and las been formulated in consulta-
tion with Speyer & Co, Of New York; Speyer
Brothers. OF London: Teixeira de Mattos Broth
ers. Of Amsterdam, and Lazard Speyer-E -Ellissen. of
Frankfort, which banking houses making the
above mentioned cash contributions and Will act
as readjustment managers without compensa ton.
The plan is also recommended by London and
Amsterdam committees Of the noteholdeTs,
posed OF well known in those cities