New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-04-04
HnannaI.
B0N1H0LDERs OF THE DENVER E.
RIO eRANDE WESTERN RAILWAY
COMPANY

BtUunUANEnS VI tHI S"'
RIO GRANDE WESTERN RAILWAY
COMPANY
Arc nonaed that they deposits their bonds ana
49,, funded coupon certAcates With the Central trust
co,nn.nv "a Wall-st Hew-Kork, and rccelve therefor
engraved negotiable certificates Of the Trust CompsJ'
Under the reorganization agreement dated April l0o'
on Hle with IT,
ccpios q the Committees circular may be hao a. ens
Trust Company or Of the Secretary Of the Committee.
Notice Win be given to Stockholders inviting deposit
Of stock when tho engraved certificates therefor are way
The snnsxed Is summary Of the pan. ,..,,.,.r
GEORGE FOSTER PEABODY, Chairman.
CHARLES J. oANDA, FREDERIC T. oLooTT.
IAMEs @ PARRISH JOSEPH D. POTTS
BARrHoID soHLEsINeER.
SAMUEL scovILs Secretary,
JIG Brcad-st. New-York City
SUMMARY oFTHE PLAN
Tho present issues Of the Company consist Of;
900 600 In First Mortgage per cent Soyesr bonds
maturing Sept l. 1911, with the coupon eerunesVes Dc
longing thereto, and e7.6oo,ooo in stock
These securities shall DO exchanged as hereinafter stad
A Comnany is 70 be formed 70 be called the Utah
Colorado Railway Company, which Is to acquire ana
succeed to all the properties and rights now oWneo W A
Denver Rio Grande Western Hallway COMPANY anu
TO acquire and possess such other rights ana powers
shall be deemed advisable out the objects OF this
psn TAs Company Is 10 issue the following securities
II Is TO first trust mortgage, which WIN con-
first lien upon all pEVpSkpI
stock ana provide for issue Of per cent 5oyear
eold bonds hereunder the purposes contemplated
the aggregate issue 70 DO limited to s1e,o0oooo.
II Is to issue preferred stock entitled 70 dividends up
TO per cont per (non-eumulauve) before the
common stock shall DO entitled 10 any dividend h1er
the payment any year OF per cent on tne pre-
ferred ard stocks both classes TO share on eoua
footing any further dividends for that year. Preferred
stock shall issued amount suncient 70 carry
out this plan, and may be issued 70 the extent Oh
81, 600, 600.
Also common stock not exceeding $4,000 S. %:
year shall be named by this Committee.
hs above securities shall DO applicable tOriOws
CO. 100000 in said FIRST TRUST MORTGAGE
BONDS to exchange for retire present
FIRST Mortgage Bonds with the certificates
thereto beionging) aud
az 600 70 the purposes widening the gauge pro-
yidIng an adequate amount OF rolling stock for
bsttcrnents and building extensions as here
mater re.errsd 70. The remaining
sd<oo 600 shall be Kept capital only to be
ISSUED against new lines at rate that viii not
under this mortgage. impose an annual charge
exceeding 81 900 per mile thereof.
sio,oOO,O0o
$4,000 IN PREFERRED STOCK shall be dis
tributed pro rata TO holdars Of present bonds
70 compensate for the reduction tn interest,"
and 10 represent the coupon certificate TO
eack bond belonging. being at tho rate OF 5000
20 each present bond. The remaining
50 800 ooo except as may otherwise appropriated BY
the Committee 10 carry out this pian ahal De
held in the treasury Of the Company as eapi
tai reserve.
The COMMON STOCK win DO issued 10 the holders
Of the present stock exchange therefor dollar for dosr
The new First Mortgage win contain proSisons that In
default in the payment Of interest In whole OF IN
part the Mortgage Trustees he Central Trust Company
OF New York; or In case they do nt act ma3oEy OF
the bondhoders shall have tbs right 70 nominate anu
have elected majority Of all the Directors OF the Oom-
pany thus providing and efficient remedy avoid
ing they desire, the delay expense ana
attending receyerships foreclosure and nhgstion
To provide means widening the gauge. procuring
rolling and doing the other things
appurtenant ths plan, presena issue shall oe MADE
Of not less COO and not more than SI1VOOoe
NJ the now First TrusttMortgsge Bonds
The money realized nom this issue shall be deposited
IN Trust Company in NewYork, TO oe paid OUT under
uroper checks for such improvements extensions ana
connected with involved in the execution Of
this plan as majority Oh tnis Conl'eS SnA4' LIVE ~
70 time approve
On the delivery the bonds interest on the pres
arg securities Is TO paid at the rates they can Tor 70
May l. 1882 from which date interest "lu O0pA0 0 INC
new bonds.
PRESENT bonds exchanged win be KEEP. alive and In trust
10 uroect those asserting until the existing mortgage or
trust deed Of August /, 1881. fs cancelled or ahnued
be minimum amount Of bonds required TO be taken
IA make the plan elective is 700 and the Com
ynee Is able to announce that It has secured subscp
lions underwriting TO that extent tho proposed pubic
issue Of the loan by bankers
CONCLUSION
II this uan be executed the yearly fixed charges under
IL win be less than 81 200 per e against about Ell 300
under present conditions while the property WIN be
greatly improved and earning capacity Increased The
bond viii DO lifted up from the speculative stage anu
p,aced on platform business certainty and confidence
as b the actual income 1t promises The remainder IL
capitalized In PreeTed Stock, and 20 given an APpe-
I ciable value.
aondholders exchanging win, instead Of per cent
bonds having fo Of % years and secured by lien on
line inadequatey equipped. get an equal
amount In new per cent bonds having hfs OF 30
years and secured by lien On an improved road wen
eouipped with modern rolling stock To compensate for
the reduction OF and for the interest accrued now
represented By per certificate that has six years
70 run they will get 1900 In new permanent security
entitled to ell the rights Of ordinary stock but VITA
Interference in dividends up 10 per cent per annun
Bondholders are invited 10 deposit their bonds with
the certificates thereto belonging and stockhod
era arc invited 70 deposit their stock with the conal
Trust Company OF EewYork, which Win issue engraved
negotiable certificates for each Application Win be a.
once aao 70 list the Trust C0mpanys eerthcaies ~ the
Stock Exchange, that they may be as avail
able for all purposes the present bonds and stock
The Committee reserve the right 70 amend this plan
within its general scope and purpose but In case OF any
amendment beyond It's present scope and purpose me ae
posited securities may Withdrawn within two weeks
scr notice by advertisement Of such amendment but
| those not 50 Withdrawn shall be deemed to assent
I The plan in detail embodied in the agreement deposited
NTH the Central Company, under which the eert
ncates Of deposit issued 70 which reference IA made
IA the season Is at hand when the work contemplated
should be begun bor3holdefs requested to deposit
their bonds without delay and before April 10 the
Committee reDerying the right 70 MAKO less iASStaoe
| terms for bonds thereafter admitted
hs holders Of majority Of the total Issue Of bonds
have 40 far assened and majority Of tho stock has al
ready boon deposited under the plan.
/ IOM BARD
INVESTMENT COMPANY,