The gold leaf., 1909-07-15
SEABOARD REORGANIZATION.
Committee of Fourteen Announces
Details of New Bond Issue ProVi-
ded-OnIy Securities TO be Surren-
dered for New Ones are the Gen
eraI Mortgage ) Per Cent. Bonds.

Special dispatch to Baltimore Sun.
New York, July "details OF the
"adjustInent'Or reorganization plan
for the SeabOard Air Line Railway
were announced this evening by the
committee of II, which had had the
matter in charge since April, 1905,
and of which e. Sidney Shepard is
chairman.
Under the plan, the only securities
to be surrendered for new ones are
the general mortgage > per cent.
bonds of 1907, for which adjustment
bonds are to be given in exchange.
The first mortgage fOur5 are to be
deposited, that they may be stamp
ed so as to be later redeemed or pur-
chased at par.
The receivers have paid the interest
maturing on all underlying division
al bonds Of the system, and the only
bonds upon which interest is in de-
fault are SD, 10, 200 first mortgage
4 per cents, SG,34J, 900 general
mortgage , per cent. and $1,000
& per cent. collateral gold notes.
The receivers have also paid the III
terest on a large proportion OF the
floating debt.
Under the plan it is intended that
$7,51O, 900 receivers certificates shall
be paid In full with interest as we'll lis
the 800, 900 q per cent. gold notes,
that the $50, 100000 underlying di-
yisional bonds, SO, 900 ten-year
, per cent. collateral trust bonds,
S4,GJ1, 900 three-year , per cent.
collateral trust bonds, SO, 1000
first mortgage 4 per cent. bonds
$23, ,S94, 100 preferred stock and
$37, ,O10,4O common stock shall
remain undisturbed.
The road is to continue liable for
its lust debts and obligations, i'll
Guiding guarantees of the bonds OF
subsidiary lines, and it is intended
to vest in the SeabOard Air Line
Railway, by sale, merger, cOnsOlida-
tiOn or otherwise, the properties OF
the Atlanta and birmingham Air
Line Railway Atlantic, ,SuwAnee River
and Gulf Railway Company, ,Catawba
Valley Railway, Florida West Shore
Railway, Plant City, Arcadia and
Gulf Railway, Roanoke and Tar
River Railroad Company, SeabOard
and Roanoke Railroad Company
and Tallahassee, Perry and South
western Railway, and Of all other
railway companies, substantially the
entire capital stock OF which is owned
by the SeabaOrd Air Line Railway,
except the properties OF such com
panies as after careful investigation
it appears more advantageous to
operate under their separate Organi-
cations.
The chief issue of new securities au-
thorized will be 4 per cent. refunding
bonds, limited to a total of S12J,-
100000, probably to be dated from
January !, 1910, payable 80 years
from date, to be redeemable at 100
and accrued interest. OF this total
issue S7J, 100000 is to be set aside
for the retirement of $40, 400, 600
underlying divisional bonds, $12,-
775,OOO first mortgage Is, S14 Sol )
900 three-year Js and ten-year IS,
about S6,00O.OOO for equipment
trusts, S4,O0O,OOO for double-track
ing and reducing grades, 81, 100000
to aid i'll iringcollateral trust and
first mortgage bonds and "a ,424, )
900 for betterments and improve
ments or for general cOpOrate pur-
poses. This will leave $JO,OOO,OOC
to be raised under suitable restric
tiOns
The other issue of new securities
authorized is to consist of adjust
ment mortgage , per cent. bonds
limited to n total of $50, 100000
these be comulatetive interest bonds
probably dated November |, 1909
payable i'll 40 years. OF these Sc,
345 700 will be eXchangeable for /
like principal amount of the existing
general mortgage 5s, &634, 800 will
be used in payment of overdue inter
est on general mortgage 5s to Au
gust |, 1909, and SIS, 100000 is to
he offered for sale at 10 per cent. o
theirpar value to preferred and com
mon stockholders.