New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-12-04
NEW Sd AVE. PLAN
BETTER TERMS TO
STOCKHOLDERS.
ProUides for Reduction in Cap
itali@atiOn and SO a Share
assessment.

total capitalization as compared with the
first plan, which was submitted in June.
and giving better terms 10 the stock
holders. although with a provision for a
much larger assessment. was filed yes
terday with the Public Service Commits
sion by the bondholders' committee.
which is composed OF James n. Wallace.
Adrian Iselin. Edmund d Randolph.
Mortimer L sehiff. James Timpson and
Harry Bronner.
The new plan provides for the authori-
zation Of q first refunding hfty-year
mortgage. securing a total issue Of $40
O0o.Oo 4 per cent gold bonds. Of which
SIS. 10000 are 10 be issued at present.
the remaining 50. 10000 20 be reserved
for underlying bonds and for future ex-
tensions, betterments and improvements
The reserved bonds are 70 be issued only
with the approval OF the Public Service
Commission The plan also includes
ffty-year adjustment mortgage. secur-
ing an issue OF SD $4,000 per cent in
come bonds and SIG. 100000 stock-a to-
tai OF $40. 10000 in new securities. The
S5.oO0.Oo0 per cent first mortgage
bonds are 10 be undisturbed as in the
former plan
The stockholders are 10 pay an assess
ment OF S45 a share. which II the plan
shall be successful. will yield S1.2oO.Oco
OF the S15. T9O.Op0 first refunding mort
gage bonds to be issued at present, the
holders OF the present first consolidated
per cent bonds. CT which $3I,o6o.oop
are outstanding. are 10 receive 1890
600. or u per cent Of principal and III
per cent in payment of unpaid interest
and the stockholders. on payment OF their
assessment. the remaining S6.4ooU0-
TRADE WITH BONDHOLDERs.
The S22.536OO0 adjustment mortgage
: per cent income bonds are TO go 10
the present bosdholders. being 10 per
cent OF the principal OF the $16.59O,OD0
new stock. 100000 will go 70 the
present bondholdeTs. being % per cent
OF principal and $500. 900 10 the stock
holders. who Will thus receive in return
for their S45 a share paid as assessment
40 per cent in new refunding mortgage
4 per cent bonds and 40 per cent in new
stock, the outstanding stock Of the pres
ent company being S16,oOo0O0.
The S12O0,OOO expected 10 be raised
by assessment is The amount estimated
by the receiver TO Ee needed 10 complete
the thorough reorganization Of the whole
Third Avenue system. the items being
as follows: For meeting receivers GER
tifcates and ind ebtedness. 100000;
franchise taxes. 81. 800, 600. renewal OF
tracks. 100000; reorganization ex-
penses, fees Of receiver. trustee counsel.
claims purchased and on account of
working capital for the new company.
81. 10000, these items covering the
Third Avenue company alone; and for
the other companies OF the system
100000.
Fixed charges will include the $4,000
yearly interest on the > per cent bonds.
as at present, and $G31. 800 on the S15,-
10000 new refunding / per cent bonds.
a total Of 1881 600. against present fixed
charges Of S1.752. 900. made up of $3.50
O00 interest on the per cents and ST.
J02. 400 on the present S3T. go. 600 con-
solidated mortgage + per cent bonds. the
saving being $50 500
Interest on the SD $50 900 new adjust
ment income bonds is not 10 be cumula-
tive until after three years. this pro-
vision meeting one Of the objections 10
the similar issue included in the former
plan, under which the bonds were cumu-
lative from the beginning and their hold
ers were entitled 10 elect a majority Of
the directors until the full interest. in
Guiding Accommodations, should have been
received for five consecutive years.
VOTING POWER.
Under the present plan the holders are
10 have full voting powers upon ALI
questions upon which stockholders. may
vote until the full interest. including ac-
foundations, shall have been paid for
five consecutive years" The first re-
funding bonds are redeemable al 100 and
accrued interest on and after January
1919. on three months notice. and the
adjustment bonds, ar par and accrued in
terest, al any time on three months,
notice.
In their petition 10 the Public Service
Commission, accompanying the plan. the
committee says the amount due on the
bonds secured by the first consoIidatea
mortgage is fixed by the Judgment ~
foreclosure as OF May i. 1909. al $40
3sLlI3 with interest 20 January 1910
amounting 10 S1.5O7. 5G4. total Of Sill
Sss, Adding the prior claims
S7.2oOD0 and the outstanding stock
Sl6Oooco Uhe total authorized stock is
S40.OOpe0. the total amount Of oblfpa-
tons and securities of the company. ex-
elusive Of the Sj.OOO.ODO first nortgape.
which is lien on the Third avenue
property alone, is figured AZ stu. tlSS. ~
The first reorganization plan. submit
ted last summer and disapproved bv the
Public Service Commission, provided for
SiO.VO.WO first refund!ng mortgage l
per cent bonds Of which SIG.5l6. soD
were 10 be issued and 50. is:,. 200 IN he
reserved; So 100000 , per cent cumu-
lative adjustment mortgage bonds n
carry interest from July 1. 1909. OF which
S%oOoo.tbO were 10 be issued 10 holders
Of the OLD consolidated bonds. 81 900 Opp
70 be delivered 10 the syndicate and
S9J2.ihO 10 be reserved To take care ~
the issues Of subsidiary companies. and
sa0.OJ,UJ stock. 10 be offered 10 the
stockholders on payment OF an afsess-
ment Of 50 a share. their holdings 90
new stock 10 be 10 per cent Of their
former holdings.
GROSS PROFITS NEAR NORMAL.