The sun. [volume] (New York [N.Y.]) 1833-1916, 1892-05-22
A1caIsox,s NEW FINANCIAL SCHEMA

aj Ssy sS Sssa n: sss,
ATCHIsON's NEW FINANCIAL SCHEME
The rneons BonSs 70 be Fu.aeA !. . sess,l
Mortgage.
BosroN May 2l.-vice. President Reinhart o.
the Atchison. Topeka and Santa F6 Railway
Company makes the following preliminary
announcement relative to the proposed flnanc'
| ing OF that conn any:
| The Atchison plan OF conversion contained
In circular No. SO. which will be published on
May rs. Is the completion Of tho reorganiza-
ton plan and returns the obligations Of the
company. including its income bonds and cap.
ital stock. to a fixed basis. Tho necessity for
reorganizing the company arose from the fact
that its net earnings for the year ending June
80. 1885, were but s0772,0OO owing largely
to the loss OF credits brought about by float
Ing debt OF $12.O0OO00. no cash In hand. and
no means for procuring tho same to place the
| property in such condition that It could bs
| operated to produce the best results.
| The Income bond created under the reor-
ganlzation was q temporary expedient, which
was made so elastic as to permit the manage
mont OF the company to use all Of the cash
above the obligatory fixed charges Of the COM
pany should occasion 30 require. After an ex-
perience Of three years with the money so
provided. as we'll as tho cash produced under
the reorganization.t the conf any has reached .
point where the net earnings from all sources
forths current fiscal year ending Juno 80 will
not be less than $11.7OO.OOO.
The net earnings have increased steadily
since the reorganization thus furnishing proof
that, with ample means at command Of the
company not alone should the net earnings
increase. but the holders OF all classes Of obli
cations: including the stock. can know hereafter
precisely what the operations OF the compnny
III. Ssa.S H' wi X" Know tae
rs oer as aG 1s s crafts from "
second maorsssss under which there WIN BE-
|: 1872. # p. per cent. for ths first fifteen
!. 1893. z, per cent. for the year beginning
Oct l. 1894. and 4 per cent; for the year begin
$50. 0OO.600 bonds issued under the same in in.
interest: Sssi5nnS Saiy isS 81 tSess 70
vii! be applied only to e1u improysme st
the system f N sire1aa a
sa I " tsess ns
10 applied in the ysas pe9t soi!SxRlns . Sas
2 90 9Hs year. to more than the proceeds Of
AZ the expiration Of four years classes A
The coupons OF these bonds are payable semi
annually, The right is reserved to the com
pany in the second mortgage. after the expir-
alton OF the four years and y quarter. to issue
In anyone year not more than $500. 900 of
second mortgage per cent bonds for the
same purposes. up toa limit OF $50 0OO. 900.
but the proceeds cannot be applied to the ex-
tension in any direction Of the company's
line Ti. +,+,,ox., -,.,
the four years beginning July !. 1892. will be
As follows, For the first year; 900; for
the second ~" YAK FAX slo1QO00O: for the third
earnings for the current year ending June 80.
1902. will not be less than $1l. 7OOOOO. The
improvements referred to include equip
eoverns ears pnrchased in G $3.50 ana isS
has been cancelled and the property covered
by the same placed under the liens Of the gem
eral and second mortgage. The second car
issuing So. 900 OF bonds. will be provided
Tor out OF class d OF the second mortgage
bonds. to be issued in the next four years.
the liens. including the equipment since the
date OF reorganization. Oct Is. 1850. is APP
proximately SlO.OOO.oOO. which Is S5.0OO.OOO
penditure OF the $5OOO.OOO cash fund pro-
duced In tho reorganization. In tho Atchson |
Company's accounts 1t has been fhe custom to
improvements. In the form Of renewals OF alb |
solutely new material and structures replacing |
those OF an interior character. This class OF |
with the proceeds from the class b second |
mortgage bonds, thus tending to reduction |
OF the operating expenses.
offered to the income Dondhoders. and tho
subscription has been underwrtten. Two and |
one. half per cent. interest. payable Sept l |
next; has been declared on the income bonds
~ ~ N