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THE STORY OF ERIE 247
1875, and 7 percent, after that date; the first con- new company to be formed, the foreclosure to be
solidated bonds to fund their coupons of September obtained under one or more of the existing mort-
1, 1875, March 1, 1876, March 1, 1877, September 1, gages best to carry out the scheme.
1877, September I, 1878, and September I, 1879; One-half the shares of the new company to be
coupon bonds to be issued in exchange for the issued in the names of one or more sets of Trustees,
funded coupons, payable in gold September I, 1920, to be called the Voting Trustees, who should hold
with 7 per cent, interest, and to be secured by a them for voting upon them until dividends had been
deposit of the funded coupons, the interest to date paid on the preferred stock three consecutive years,
from September I, 1877, on their entire amount. certificates to be issued for the same, entitling the
The coupons of the first consolidated mortgage holder to receive all dividends declared on the shares
bonds falling due September 1, 1876 (but to be paid held in trust; the Voting Trustees to be named by
on December 1, 1876), March 1, 1S78, March 1, the Reconstruction Trustees, and empowered to fill
1879, and March 1, 1880, to be paid in cash, the their own vacancies, each Voting Trustee to be a subreconstruction
trustees having power, at the request stantial bondholder at the time of his appointment,
of the Receiver, to extend the time of paying the and to resign in the event of his ceasing to be such.
first coupon to March 1, 1877; the six coupons of The dividend power of preferred stock was rethese
bonds intended to be funded to be forthwith duced from 7]'. to 6 per cent., payable in currency,
deposited with the Reconstruction Trustees and and dependent on the net earnings, each shareholder
receive in exchange certificates representing them, to be admitted to the new Company, share for share,
pending the preparation of the new coupon bonds, preferred for preferred, and common for common, but
thus signifying their assent to the arrangement. conditional on the payment of $3 gold per preferred
The second consolidated mortgage bonds to fund share and $6 gold per common share, on or before
their coupons as follows: Ten half-yearly from June March 1, 1877, the shareholders making such pay-
1, 1875, to December 1, 1879, inclusive, the coupons ments to receive for the amount non-cumulative
to be funded at the existing rate of interest on the income bonds, without mortgage security, payable
bonds, 7 percent., and funded coupon bonds to be in gold on June 1, 1877, and bearing interest from
issued in the amounts bearing interest at the reduced December 1, 1879, payable in gold at 6 per cent.,,
rate of 5 per cent, from December 1, 1877, to June dependent on the net earnings. Shareholders had
1, 1883, and thereafter at 6 per cent., the Recon- the option to pay on or before March 1, 1877, $2
struction Trustees having power to postpone for six gold per preferred share, or $4 per share for cornmonths
the payment of the first coupon on these 111011, then to be admitted to the new company
bonds, falling due June I, 1878, at the request of without receiving income bonds, a further and final
the Receiver.
period to be fixed for the payment of assessments
The principal of the second consolidated and gold beyond March 1, 1877, but after that date an addiconvertible
bonds to be represented by new second tional charge of 7 per cent, on assessments was to
consolidated mortgage bonds at 6 per cent, from be made; new shares to be issued to the amount of
December 1, 1879, an