Re:(erielack) NJ&NY financial history

["Janet & Randy Brown" <jananran_@_mymailstation.com>]

Tim wrote,  ". . .the stockholders would get nothing. . ."  Ah, but the attorneys and CPA's  . . . 

Randy Brown
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I got out my 1965 copy of Moody's Transportation Manual to check out the NJ&NY Railroad.  Here is the story.

The NJ&NY declared bankruptcy in 1938.  In 1954 Horace Banta was named Trustee to replace the previous one who had died.  There were several attempts to reorganize the company, but none had been successful.  In 196 5
the EL claimed tat the NJ&NY owed them $3.6 million for equipment rentals

and operating costs.  The EL attempted to offer ownership of the company  in
exchange for forgiving the debt.  The bondholders objected as they would get nothing.  There were 14,000 shares of common stock, 8,000 shares of preferred stock, and three series of bonds, all defaulted as of 1938:  1s t
Gold due 1950, 2nd Gold due 1986, andGeneral Mortgage due 1938.  In the 1950's the Erie purchased some of the stocks and bonds in order to attemp t
to bring the case to a close.  This was still going on in 1965!  Needless

to say under every plan the stockholders would get nothing.

The next Moody's that I have is from 1980 and by then there is no mention

of the NJ&NY, not even in the "Companies No Longer in Existance" section.
 

If anyone has a copy of Moodys between 1966 and 1979 perhaps we can find out how the NJ&NY was wrapped up.

Tim Stuy

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