New-York tribune., 1909-05-31
PLANS FOR SEABOARD
TO AVOID FORECLOSURE.
Denial bB Committeeman of Ad0p-
lion of Organization Scheme.

Baltimore. May 30.-A plan for the reorEaniza-
ton Of the Seaboard Air Line Railway has. accord
ing to a story printed In The Baltimore News
to-day. been practically agreed upon and viii bs
promulgated by the committee about June II Ther-
are. the article states. still minor details TO
be worked out, though the general terms have been
approved by the reorganization COMMITTEES.
In brief the plan provides for No foreciosu-s;
present first mortgage TO per cent bonds
remain; money with which pay OF receivers csr-
tiftcates and floating debt be raised through sale
Of debenture income bonds; preferred and com
mon stock 20 be assessed; collateral trust three
year and ten-year per cent bonds be retired az
or before maturity; fixed charges under reOrganizs
ton TO be reduced about 25 per cent. recsvsrshi7
TO cease about the end OF the present year: slni-
nation OF voting trust: stock be issued to stock
holders. and by them voted.
Elaborating the foregoing features. the paper
says there will be an issue OF debenture OF income
bonds for the purpose OF raising money with which
pay OF the receivers certificates amounting
se50Ooo and the floating debt. being the total cash
requirements necessary 70 be provided for befor-
the receivership be lifted, Up about
s12O00000
The present first mortgage to secure issu.
OF S7500O.O00 OF per cent bonds. OF which S2,-
750O0 outstanding will not be disturbed though
provision is made for the payment OF all back
coupons. of which there are three 1t is said nOns
OF the stocks will be assessed this being obviated
by the sale OF debenture bonds.
When Seaboard Air Line Railway rsOrganizeI
the railroad. will be dissolved and the stock or
the railroad held by the holding company
will be distributed to the holders OF SeabOard Com
pany shares
II IS understood that holders OF the first mortgages
4 per cent bonds will be asked 10 deposit their
securities with the trustee OF the mortgage the
Continental Trust Company. OF Baltimore in order
that supplemental mortgage may be agreed 20.
by which the per cent. bonds may be redeemed
at the pleasure OF the company par and interest
at any interest paying period before maturity
II is intimated that the plan OF reOrganization
as agreed upon is dependent upon the acceptsncs
or the terms by the holders cf the 4 per cent
bonds. and unless this given il NAV b.
necessary TO forecose- The terms. however. are
regarded as very liberal all interests and is in
not likely the bOndhOIders Will reject them
Thomas J. Hayward, Of this city. a member OF
the subcommittee OF the general COMMITTEES on the
reorganization Of the Seaboard Air Line. to-night
denied the report OF the reorganization plan. No
agreement had been adopted. he said and nor
even a tentative plan had been formulated bv tire
subcommittee we had hoped before this he
added, Ito have plan all ready 70 submit TO ths
general committee. but yet va have not been
able to do so. I in hopes that a plan may be
approved very soon Perhaps it NAV be approved
which will be held June ), but I cannot say
positively that plan will be submitted Mr..
Hayward gave II his opinion that the receiver
ship will be lifted from the company by next jan
uary