New-York tribune., 1909-06-26
THIRD AVENUE PLAN
SCHEME OF REORG4NIZ4-
\ TION SENT TO p. S. c.
Old Stock assessed S25 a Share
Ne7U Bond Issue ST2, 900 900
and Stock $50. 900 900.

which has been prepared by committee represent
ing the bondholders under the first consolidated
rnortEage Of which James y. Wallace is chairman
The plan which provides for assessment OF 80
q share OF the stock and the issuance Of bonos 70
cover the present issue as We'll as 10 proVloe lor
the accrued interest now in default meets win me
approval Of Frederick " Whitridge receiver OF
the Third Avenue Railroad Company. Commenting
on the plan last night he said
Tt ought 10 he plain that the stock no" L u 10
value There are some people who thlnk II Is o-I
cant see il from my point OF view The company
is not in position TO any dividend on the
stock one argument for holding on 20 the slooA'
however is that II is gold bearing
This statement was made by Mr- Vhtrtdge WAen
told that in some quarters there was disposlIoh
10 criticise the reorganization plan oeo@1se -'
water had not peen squeezed out Of the STOCK
~ rnus+ he understood he said that ta's ls
not new company This stock mas peei tsS'
ana We must give the stockholders Vho OeiieNe -
has some value something 70 represent the1r holo
s,ee r7y+ the amount Of stock does not make any
,zi4fereroA 50 long as no attempt is made 70 Pay
ssrearred dividends by fraudulent praohoes-
NJ vbfrridge was asked how he hoped 10 ge'
an eseass-7,ent of S25 share securities WHICH
..-,-5f,e- 70 his way Of thinking. would be OF 10
value ...,+s,
Nam Of the stockholders have sentl7aeh.zl
regard for the stock he replied ana VIZ - -. =
,,ror holding il They have faith that Il VII paS
-z,eu IN time l heard of man Who s7lieo -
F-.rone ? few days ago leaving instructions " W.
7-ts bankers tc nav the assessment on ms lHiu
Avenue stock no mauer what il was
NJ w-hitrtdge said the committee reileo oi -
assessment TO aid in establishing l1LiD -,
--,,-n- the property. We could noS squeeze 'l.7
60 ,,,- If -he stock very we'll he declared
..---ho,t squeezing out the money at the same
time II You wiped out the stock Fol "ol- ,
n 5ss,,e mora bonds and increase ne -l2eo 'i
- -ha latter proposition I have been strehuouslS
opposed .,,,.-,o- of
-r s,,~or,er-z- rv the Public Service toraE2-s7'A
They have some peculiar notions ABOUT .II
sl-,pose they will kick about TINS plail' D
win approve IL
P1-P.-44AsE OF PRoPERTT-
-ra Man provides for the purchase by ne - Dosl-
holders of the property which Is TO be so-o --ile-
tI.-. - serfernher L is 70 be turned over
= new COMPANY 70 be formed. the seclrlt.ss u
ul7irh shan he So 0aoopo in bonds ana S-o'' -
stock. ..
an If these bonds are not he Issued al once
- A. r1,t * v[z-er as an answer those who
-.,+ on, that the lia hiltes OF the new company
. win be nearly great as those OF me present
cornparv which are SsS5l"se
I * also sho-yn that Of the bonds provided tor
=. ,bs nan So ..oc are 10 be adjustment income
to,5.-trar Is not 20 receive interest until II Is
se-ned although the interest viii Re curnu4auNe
OF the s4aoaa6a refunding mortgage oonos II i
planned 10 issue Immediately only Sloolh-"'
as for the s3nNNaen stock il was said last nlsLat
fz- re~son familiar with the reorganization that
Il could not be said TO iHper the soundness Of the
company so long no effort was mace 70 pay
unearned dividends
4 member Of the reorganization committee which,
in addition 70 Nj Wallace consists of Adrian Iselin.
E,drr ID D Randolph. Mortimer L Schih. James
Tiuapson and Harry Bronner, said last night lhat
thev had not intended 10 have the plan MADE pup
lie at this time They had submitted It simply as
q tentative proposition to the Public Service Com
mission in connection with the application for per
mission 70 issue the proposed securities
The Public Service Commission named Wednes-
dav morning for hearing on the application It
was suggested that the commission did not alto
sether fancy the idea Of approving the issuance
% securities in connection with tentative plan.
and would pass on the reorganization pan N
pass form Of reorganization except IN so Tar
as the issuance Of securities is Involved
PLAN or REORGANIZATION.
The man Of reorganization as submitted 10 the
Public Service Commission is as follows:
The property covered by the Third Avenue con-
1ifte II foreclosure sale unless should here
after decide TO proceed without toTeGloSLTeZ Z aaQ
the laws Of the State Of New York, by which the
seouIities herein pToyded foT Saal 0e IS5o "s s
Application has already been made 10 the conmls-
Tie seclrIJies Of the new company are TO be:
$50 0ao eee first refunding mortgage ffty-year Per
cent gold bonds, TO carry interest from July l.
81 d5a ooa cumulative per cent adjustment mort
gage gold bonds, 10 carry interest from july l
s20ds.a 010 stock
and accrued interest and after July /, 1914, on
f1ree months notice by the COMPANY
die to be formed by the committee. and Of
which the members Of the committee may become
members
sl0lssa0 shan be issued 10 holders Oft Of the present
Third Avenue consolidated bonds. being per cent
for unpaid interest and - per cent on account OF
81 zs5es0 shall be reserved 70 take up the under
loo 80 shall be issued forthwith to provide for
es+na
s2oSs aea shall be reserved TO make future exten-
sions improvements. under restrictions to be
defined in the mortgage These bonds viii only
be issued with the approval Of the Public Service
AdfliStrnent bonds shall he cumulative and be en-
TITLED elect majority Of directors until the fun
interest including accommodations, has been
ceived for five consecutive years. and shall be
redeernable whole but not in part ar par and
accrued interest any interest date three
months notice by the company
S3lFzs shall he issued holders Of the present
Third Avenue consolidated bonds. being 50 per
cent Of the principal thereof
sos al be delivered to syndicate
Se52 shah be reserved take care Of certain is
sues Of subsidiary companies. any balance to re-
nlain in the treasury of The new company.
100000 shall he delivered 70 the syndicate who
will offer the to the present stockholders Of
me ihird avenue company who deposit their
sock and consent 70 this plan and pay s25 per
share, in amount equal in each to 125 per
5 cent Of their present holdings
Nr whitridge explained that the fixed charges
would be reduced by about $4,000 a year. The
plan is expected provide s.. 10000 in cash which
il = estimated. will needed to complete the
thorough reorganization OF the entire property.
The reorganization committee ends its outline Of
the plan with Just touch Of apprehension for the
future. Il SAYS:
II submitting this plan the committee has sought