New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-10-15
ATCHISON'S NEW PLAN.
FIXED CHARGES TO COME DOWN NEARLY
100000.

"
SUBSCRIPTIONS ASKED FOR s12 100000 NEW
PER CENT BONDS AT ONCE.
Boston, Oct 14.-The long-expected plan OF reor-
ganzaton Of the Atchson, Topeka and Santa Fe Rail
road Company made public today. II contem-
plates the issue OF new 1oOyear per cent general
mortgage bonds to the amount of $780, 900 900, all
dt0nal bonds 10 be Issued only for newly contracted
or newly acquired mileage. The circular issued by
the directors says The and rentals added to
The Interest upon that portion OF the per cent bonds
which 1t is proposed to issue at once, make up
nual fixed charge OF under a. 100000 This sum, in
the opinion OF your directors, fairly represents the
earning power OF the system this year, and they
hdenty hope and believe IL will be increased In the
fuure.' 1t is also proposed to issue 1OOyear income
bonds for $50 900 900, bearing interest rate not to
exceed per cent nOn-cumuative. These bonds will
be used to facilitate the refnding of the old higher
rate interest bonds The Board says in Its circular,
after stating that the basis for the scaling Of the
various bond Issues have been most carefully
sidered They feel 1t necessary state in the strong
est terms that the Of this proposal Will III
evitably result In foreclosure with all its attendant
misfortunes.
The total outstanding principal Of the bonds issued
by the Atchson Company, for which 1t is partly
wholly responsible, is $780, s6,O0O, with an annual
interest charge OF 80 G2O exclusive of u 445660
equipment lease warrants, with annual interest OF
So614O. There also outstanding $lO,l3G,0O0 In
come bonds bearing per cent interest when earned.
The fixed charges Of the company at present are as
follows:
Interest bonds and guarantee fund 209 go
Interest on car s67IO
932O ITO
Deduct interest on bonds and guarantee fund
notes owned by the company aud represented
as collateral, 2o53iO
Total :........,............. s0O7577O
22inklhg FUNDS S339OOO
So Os2 900
Grand tota.................... ......sIi l57, 40
Under the proposed plan of reorganization the new
per cent bonds to the amount.of l44 $50 $50 would
bear Interest charges Of 40 662 deductng 1881,
500 new fOurs returning TO the treasury when the
floating debt is paid and securities thereon and in the
treasury exchanged, the Interest charges cut
down S141 ,272, leaving net interest charges Of
5000 800 The total amount of fixed charges under
the new plan then would be-.
Net per 629 800
daNes wv
RENTALS oO2OOJ
Total ........... 81, 3j2 800
The reduction from present fixed charges Will
amount to So, S05]S0.
The new per cent bonds are to be applied as
follows:
To take up existing mortgage and ., ,oo --o
For cash subscription. 122,5oo99'QQ0
For 0,fOS,9OO
--Sl50, 900 600
In addition to the reserve of S5,73345O. there Will
be returned to the treasury of the company after
The floating debt Is paid by means of the cash sub
sciptons TO the bonds, and the securities held
thereon released ard exchanged, the amount Of
70 ,531 500 bonds, making 30 2G5,25o bonds held In
the treasury for future use.
The now 3 per cent Income bonds amounting TO
$50 900 900, are to be issued as follows:
To take up existing mortgages and lien COZ l60
For cash subscription isvVVv199
For isues OF income bonds outstandng.-.... 40929id
Treasury balances 9oV-p
Total
After tho floating debt has been paid oil as IN
the case OF the per cents. there VIII DC
II 30l $50 incomes returned b the treasury giving
Il a total amount OF income bonds of 81 ,10O5So
The directors circular Invites subscriptions %
sI2 500 600 new general mortgage per cents. sub
scrlbers Of $500 in cash being entitled TO receive
II 600 new As and 600 In now income o. STOCK
holders OF record OF to-day VIII be entitled to pref
erence in case The applications exceed tho issue;
The Union Trust Company Will receive deposits OI
bonds under the proposed plan Of Reorganization
INTERSTATE COMMISSION DECISIONS.
II