Sterling convertible 6s, $4,457,714 $267,463 First consolidated 7s, 12,076,000 845,320 Convertible 7s, 10,000,000 700,000 Second consolidated 7s, 15,000,000 1,050,000 ----------- ---------- $41,533,714 $2,862,783 Old Mortgages, 13,155,500 921,062 Guaranteed bonds, etc., 6,003,360 449,411 ----------- ---------- $60,692,574 $4,233,256 Rentals, 742,226 ---------- $4,975,482 _After December 1, 1883_ _Principal_ _Interest_ Consolidated 7s, $20,005,794 $1,400,405 Consolidated 6s, 33,516,666 2,011,000 ----------- ---------- $53,522,460 $3,411,405 Old bonds, 13,155,500 921,062 Guaranteed bonds, etc., 6,003,360 449,411 Rentals, 742,226 ----------- ---------- $72,681,320 $5,524,104 Total before reorganization 60,692,574 4,975,482 ----------- ---------- Increase, $11,988,746 $548,622 It thus appears that this reorganization plan contemplated an immediate increase in the cumbrous capitalization of the company to the amount of nearly $12,000,000, and an eventual increase in fixed charges of over $500,000. It offered no reasonable assurance that the solvency of the company could be maintained under the average conditions existing in the past, and left no margin for contingencies of any kind. The trouble lay in the unwillingness of bondholders to sacrifice any part of their holdings to meet difficulties caused largely by inflation over which they had had no control. This reluctance was natural,—it should have been met, however, by the realization that the question was now of the future and not of the past, and that the best interests of the bondholders themselves demanded a reconstruction sufficiently radical to leave no doubt of the ability of the new company to pay its debts.