New-York tribune., 1909-07-02
SAVING THE SEAB0ARD
BIG BOND ISSUE PLANS.
Reor gonizers U7iU Float Ne7c SecWri-
ties of $4,000, 900.

T-,6e, the reorxarization plan OF the Seaboard
Air Isne Railway Company. Just MADE pubic. the
only securities be surrendered for ne" ones are
the general mortgage Per cent bonds of 1907 for
which adjustment bonds TO be given in eX-
change The first mortgage per cent bonds are
10 remain undisurbed. but the bondholders are
asked 70 stamp their bonds so that they shall
become redeerlabIe purclasable at par and
accrued interest on any payment date II
they consent this request the committee say
the carrying Of the plan will be practically as
sured
Two new bond issues 10 be created. one Of
refunding bonds limited TO Sl250Ocoo0. and one Of
adjustment bonds. limited to SO oooo0o OF the re-
funding bonds S75.00oO5 is TO be set aside for the
following purposes For refinement Of underlying
divisional bonds S30.40o.0oo; Of first mortgage per
cent BONDS. S12775OoO: of three-year and ten-year
per cent collateral trust bonds N465Oo; OF equip
rnent trust obligations. about S6,0000: for double
tracking, reducing grades. etc, s4"h""' tor a1dihg
in The retirement OF the collateral trust and hrst
mortgage bonds, and, far as not needed for
that purpose. for bettermens and improvements or
for general corporate purposes, 81 5o0oo, for bet
terments and improvements. or, at the option OF
the directors. for general corporate purposes
IS z2zGo
This viii leave 100000 be issued under re-
etrictons be specified in the mortgage The re-
funding bonds ara 10 bear per cent interest and
ito FUN for fifty years from January next They
will be redeeuable az 10 and interest on any m
lterest payment date
/ The Sc. 10000 adjustment mortgage forty-year
cumulative will be disposed Of follows; In ex-
change dollar for dollar. like amount Of the
existing general mortgage Ss34oo; in payment
dollar for dollar. Of the overdue interest on the
general mortgage 5s to August 1909 S6S45o; TO he
offered for sale ST 20. holders Of the preferred
land common stock. SlSnooGla balance. ShSo The
Sz3 So 100 preferred stock and the S3HolS=" co1fl
/ stock are remain undistlrbed-
a underwriting Syndicate has been formed For
a commission of per cent OF the par value Of the
S1s00O0o0 adjustment bonds TO be sold it has guar
a-teeo TO take at 20 any part OF these bonds not
subscribed for by the stockholders. The proceeds
OF the sale Of the SlS6oo0o0 20. after de-
tiucting the undezwrtting commission. will be ST.
7oaooo which will used follows in meeting the
cash requirements under the plan: For paving on
the receivers certificates S.5000T paving the S7Cc-
GO per cent notes. with interest. $4,000: paying
4the three coupons mortgage As. S766ooo:
thus leaving S2e6I applicable toward payment OF
the floating debt which amounts about S25o0oO0
and interest expenses of the receiVership expenses
and compensation of the -corniTee, and other ob-
cations
Deposits of the first mortgage IS and general
MORTGAGE IS are required on before August 10.
the deposita-fes being the Morton Trust Company,
of this city: the Continental Trust Company, Balt-
more. the Bank of Ricarnond. Richmond and the
American Trust Company. Boston.
Atlanta July 1.-Arnounceraent that the issue OF
$4,000 in bonds for the reorganization Of the
Sea board Air Line Pathway had been approved by
The Georgia Railroad Commission was made here