The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1892-05-24


| which includes earnings from railway
| operations as we'll as net cash results
| from investments. This amount of net
earnings has grown steadily since the
| successful outcome of the reorganiza-
ton, thus rendering substantial proof
that, with ample means at command of
| the Company not alone should the net
| earnings be made to increase, but that
the holders of all classes of obligations
of the Company, including the capital
stock can know hereafter precisely what
the operations of the Company are, as
well as the intrinsic worth Of their secu-
rites.
THE income bondholder in the con-
version will obtain a security which will
return fixed interest of known amount
not subject to violent fluctuations of the
market in the absence of knowledge dur
ing the entire year as to how much his
| obligation will be declared entitled to.
''The stakeholder will know that he is
entitled to all the money produced by
the Company from its railroad opera
tons and other sources over and above
its known fixed charges.
1.-THE plan provides for the creation of a
second mortgage under which there will
issue at once $4,000, 900 of bonds termed
class A. with graded interest beginning
July, /, 1892, at q per cent the first fifteen
months, per cent for the year beginning
Oct. l, 1893, 81 per cent, beginning the
year Oct. /, 1894, and 4 per cent for
the year beginning Oct. /, 1895, and
thereafter. Also for 100000 bonds
issued under the same indenture, termed
class b carrying interest, begin
ming with July l, 1892, at per cent.
per annum, under which no greater
amount than $5,000,000 in any one year
can issue, the proceeds of Which will APP
ply specifically and only to improvements
including equipment on existing mileage
of the Atchison, Topeka & Santa Fe
railroad system as it is described in cir
cuar G3. 1t is also provided that if the
Improvements do not call for the issue of
S0,000,0OD of these bonds in any one year,
the excess amount of such proceeds can
apply in the next year following, but in
no one year to more than the proceeds of
$5,000,000. At the expiration of four
years CLASSES A and B become Identical
~ the same bond issue. Coupons under
these bonds ale payable semi-annually.
The right is reserved to the Company in
the second mortgage, after the expiration
OF the four years and one quarter, to
issue in any one year not more than
$780, 900 of second mortgage per cent.
bonds, for the same specific purposes, up
to limit of S50,000,000; but the proceeds
not to apply, however, to the extension
in any direction of the Company's lines.
"The outside amounts Of the fixed
charges of the Company in the four years
beginning with July l, 1892, will be as
follows:
F E me nrst year ............ SIC, 900
For the second year. 10,70O,000
For the third year. ............ IL 100000
For the fourth year. ............. IL 100000
LAS before stated, the net earnings for
the current year ending June 80, 1892,
are not less than 81 100000, the position
OF the Company, with ample and stated
means provided for improvements, can
be readily seen.
Improvements referred to include
equipment. The first car trust for over
81, 900, covering cars purchased in
1880 and 1891 for the Company has been
cancelled, and the property covered by
the same placed under the liens of the
general and second mortgage. The
second car trust, upon which the Com
pany is at present issuing $2,500,00O of
bonds, will be provided for out of the
second mortgage bonds, class B. to be
issued in the next four years.
The value of the new property placed
under lien, including the equipment
since the date of reorganization of the
Company, October IS, 1889, approx
mates S10,000,000, which is $4,000, 900
M hoy hot RI a Dr.
900 cash fund produced in the reorgani-
cation.
I'm the Atchison Company's ac-
counts, it has been the custom to include
in operating expenses items strictly
improvements in the form of renewals
OF absolutely new material and struct-
ures replacing those of lesser produc-
tion This class of construction and ma
chinery will also be covered with the
proceeds from the 'class b second mort !
gage bonds, thus tending to a reduction ]
OF the operating expenses.
AS has been demonstrated also oper-
ating expenses are naturally decreased
by improved condition of plant, SO that, |
with the experience the management has |
had it feels entirely safe in returning the |
Company and its obligations to perma-
nent basis, which the management has
always had in contemplation from the |
time when necessity for reorganization |
arose.
THE first issue of class b bonds will |
be offered to present income bondhold- |
ers, and the subscription has been under |
written.
Two and one-half per cent interest. |
payable September 1, has been declared |
on income bond coupons for current year
to June 30.'