The Washington herald., 1909-05-31
NO NOSkLEOFSEABOARD
Reorganization Plan Of Rail-
way Has Been ADOPTED.
WILL ABOLISH VOTING TRUST
Recefvershfp VIII BE Ended in SIX
Nonths-CoIIateraI Trust Bonds
VIII Be Retired-Fixed Charges
VIII Be Reduced Twenty five
Cents-No Assessments.

New York. Nay 99.-A plan for the
reorganization OF the Seaboard Air Line
Railway has. il IS understood here to
day, been practically agreed upon and
VIII be promulgated by the COMMITTEES
about June Il There are still some
minor details 10 be worked out. though
the general terms have been approved
BY the reorganization committee. OF
which c. Sidney sheppard is chairman
The features of the plan follow:
10 foreclosure.
Present first mortgage TO secure 4 per
cent bonds 10 remain
Money with which 70 pay OF receivers
certificates and floating debt to be
raised through sale Of debenture or in
come bonds.
Preferred and common stock net TO be
assessed.
Collateral trust three-year and ten-year
Is per cent bonds to be retired at CT be
fore maturity.
Fixed charges under reorganization 70
be reduced about . per cent
Receivershlp 20 be lifted about end OF
the present year.
Elimination OF the voting trust
Il is said that the plan. Of which the
foregoing Is an outline. was unanimously
adopted
To Lift ReceIvershfp
Il is proposed to lit the -eceivershlp
about the end Of the presen, year, or
about Two years after the United States
Court appointed 5. Davies VARIED and
r. Lancaster Williams. OF Baltimore. and
z. c Duncan, OF North Carolina. 10 tslIe
charge Of the property and operate il
under the protection OF the court.
Another important feature Of the reor-
ganization. Il IS understood. VIII be The
elimination OF the voting trust- The
stock VIII be issued 10 stockholders and
by them voted
When the Seaboard AIR Line Railway
IS reorganizsd the Sea5oard Company.
the holding company Of the railroad. viii
be dissolved and the stock Of the rail
road ROW held by the holding company
VIII be distributed 10 the holders Of
Seaboard Company shares.
Il IS understood the holders Of the first
mortgage I per cent bonds VIII be asked
70 deposit their securities with the trus-
tee Of the mortgage, the Continental
Trust Company Of Baltimore. IN order
that a supplemental mortgage may BE
agreed 10. by which the I per cent bonds
may be redeemed at the pleasure OF the
company az par and interest at any in
Jerest-paying period before maturity
Adopted As PreeautIon-
As the financing Of the company may
make il necessary IN the next few years
10 retire the present outstanding per
cent bonds, 50 that a new refunding bond
may be issued 10 provide sufficiently for
the corporations requirements for the
next twenty years. It was deemed advisa-
BE to adopt this precaUtion-
II IS intimated that the plan OF re0r-
ganizstion as agreed upon is dependent
upon the acceptance Of the terms by the
holders CT the Z per cent bonds. and IN
less this assent IS given It may be neces-
sary 20 foreclose The terms. however
are regarded as very liberal 10 all inter
ests. and It IS not likely the bOndholders
VIII reject them.
Under the reorganization fixed charges.
Il Is estimated, viii be reduced about .
per cent or approximately 1.000.003