New-York tribune., 1922-09-05

the five-year period, beginning January
l, 1928, the interest coupons maturing
on or before January 2, 1923, with re-
spect to bonds in the above list, are to
be detached by the respective deposi-
taries and lodged with special de-
positary or depositaries approved by
the committee, against the issue of re-
ceipts or certificates to an equivalent
face amount Such receipts or GER
tificates are to be purchased or re-
deemed by the government from
fund sufficient to retire them in full,
extending over period of forty years,
beginning January /, 1928. The GER
tlhcates for arrears of interest will be
Of two kinds, Class "a and Glass 'B';
Glass a. to be retired completely prior
to Glass 3D.
The respective bonds to which this
plan Of reimbursement applies are to re-
ceive certificates for arrears of inter
est on the following basis: The secured
debt and the railway notes secured
thereby (Nos. 1, 2, 8 and 25) are to
receive 100 per cent Of arrears of in.
terest in Class "A certificates. The
balance Of the government loans with
the exception of the internal 3 per
cent and 5 per cent loans) and of the
railway obligations with the exception
OF the notes No. 25 secured by govern
ment bonds) are to receive IS per cent
Of arrears of interest in a certifi-
Gates and 65 per cent in 81 certif-
Gates. The internal 8 per cent and
per cent bonds are to receive 100 per
cent of arrears Of interest in 81 GER
tihcates Based on the amounts of sA'
certificates and 'B' certificates to be
issued, it is calculated that the nro-
posed annual payments will retire all
the a certificates in a little less than
twenty years from January /, 1928. as-
suming that retirement is effected at
par.
s'The government is to make prompt
return of the National Railways to pri-
yate management and to the control of
board OF directors agreed upon with
the committee. 1t recognizes it's obli-
cation TO restore such railways, incIud
ing rolling stock, to their condition at
the time the government took over the
railway lines.
Holders of outstanding obligations
OF the National Railways system. listed
above, upon deposit under the plan and
the adoption thereof, are to have their
bonds and notes stamped to the effect
that the government agrees to assume
the payment of principal, interest and
existing sinking fund therof, subiact to
the provisions set forth as to the nav
ments during the five-year period. TIE
liens created by the existing MORTGAGES
are not to be enforced unless the gov.
ernment defaults in it's obIieations
under the plan, in which event surb
liens may be enforced in favor of the
respective bondholders.
"Ten per cent 90 per cent? of tba
annual gross receipts of the RAILWAYS
are to be set aside toward the mini
mum fund to be provided for the nav
ment of cash current interest. Further
as stated, until the resumption in cash
Of full current interest on the oblipa-
tions dealt with under the plan. the net
operating revenues of the National
Railways are to be added to the fund
for the same purpose.
Matured Obligations
"The matured notes of the Nation 81
Railways of Mexico (No. 26) are to ba
extended for period of ten wears from
January 1, 1928, with interest at < nor
cent per annum for the first five years
and at 8 per cent per annum tbere-
after The 6 per cent notes of the frov-
ernment of Mexico (Nc. 81 and the Ma
tional Railways notes, secured by a
per cent government notes (No. 25l.are
to be extended for the same nariod of
time, with interest at the rate of q ner
cent per annunl.
All sinking funds are to be most
poned Tor period not to exceed FIVE
years from January l, 1928"