New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-12-05
FORECLOSURE SALE
OF R. R. TODAY
Buffalo & Susquehanna Bond
holders Expected. To Be
Only Bidders.

Al the foreclosure sale to-day OF
tho Buffalo 4 Susquehanna Railroad
comrany at Coudersport. Penn. the prop
.rty is expected to be bid in by the pro-
,ectiye committee representing the first
refInding per cent bonds. Of which
Alvin W Krech. president of the Equi-
table Trust Company, is chairman. The
rpsr: price has been placed at 40 per cent
of the $3.50 1000 bonds outstanding and no
other bids are expected.
l. s Farlee. of J. $. Farlee & CO., 4
member of the protective committee; l.
Rbosdos secretary, and J. +. Wicker
sham. Of Simpson. Thatcher 4 Bartlett,
counsel for the committee. will represent
the boudholdcrs at the foreclosure sale.
Mr. Rhoades said yesterday that approx
nately 9Si2 per cent of the first mortgage
4, per cent bonds has assented 10 the COM
pany's reorganization plan. which was
made public on November Il.
The preferred stockholders committee,
Of which James n Wallace, president of
the Central Trust Company, is chairman,
has already indorsed the plan. thus in
suriug its success.
This plan provides for an assessment Of
70 per cent on the preferred stock, in
return for which the holder will receive
10 per cent in first ! per cent bonds OF
the new company, 20 per cent in the new
per cent preferred stock. cumulative
after 1914 and 90 per cent I'm new COM
mon Thus the holder Of LEGO shares OF
the old preferred stock. of $4,000 par
value viii pay an assessment OF $5,1@. for
which ne receives 5000 i'm new first I per
cent bonds $1,000 in new cumulative 4
per cent preferred stock and $4,000 in
new common stock.
Interests ASSOCIATED with the reorgani-
cation estimate the new bonds are earn
ing double the interest charges, cOnse-
ouently are worth 20 on this basis; the
new preferred stock is worth 40. on the
assumption that it will soon go on a
dividend basis. and the common stock
should be worth at least ;. This would
give q value of S 80 to the new securi-
ties. an excess Of $3.50 above the $500
assessment.
III. l. Miller. who was appointed re-
cever for the Buffalo q Susquehanna in
1910 and who will. according TO present
plans he elected either president or
chairman of the board Of the new COM
pany. took a hopeful view yesterday Of
the proporty's future. I'm an interview
with your correspondent, he said.
Under TIE reorganization plan the
company viii have approximately the
same amount Of securities outstanding
as under the old arrangement. The com
pany is now earning its fixed charges,
and / confidently expect that next year
the fun 4 per cent dividend on the new
preferred stock will also be earned. In
the past the Buffalo & Susquehanna has
suffered from inadequate equipment, ana
arrangements have been made TO meet
this need
4 traffic agreement is being worked
with the Pennsylvania system which it is
believed will be of great value to the
Buffalo & Susquehanna. The details oil
this agreement have been practically com
pleted and if no hitch occurs will be
signed shortly
) II is stated that the GOODYEAR interests,
which originally held the greater part OF
tine company's interests, have disposed OF
practically all their holdings. which are
now understood TO be widely distributed.