Morning journal and courier., 1892-05-27
Atchfsonss Reorganization Complet-
 ing.

and is fully covered by insurance.
 Atchisonss Reorganization Compiet-
 ing.
 Boston-Five years ago the present fnan- cial management of the Atchison, Topeka & Santa Fe Railroad company came into power. An expenditure of more than S100, ,000, 900 had been made by the previ- ous management for the building of exten- sions and new lines, but when the balance sheet was struck net earnings were found to be not only under dividend expecta- tions, but one-third less than actual inter est charges, while floating debt and needed physical improvements hard pressed the company.
 The new directors and their banking as- sociates carried the company for year and brought forth a scheme of financial reorganization which has ever since been considered masterpiece. It proposed in
 brief that $12, ,000, 900 of charges be divided upon the basis of making one- third option al to pay according to net returns and inn provement requirements of the company. For this $4, ,000, 900 of optional interest $80 ,000, 900 five per cent. income bonds were issued to the bondholders.
 It was immediately seen that there was defect in such a plan-an uncertain fea- ture made necessary at that stage by the uncertainties of the future-and that there remained open the temptation to rival or speculative railroad interests to purchase control of the property and develop the stock at the expense of the holders of the income bonds by putting all the net earn ings into improvements. It was proposed to cure this by voting trust, but objec- tion being made to this centralixation of power that plan was dropped.
 The same banking management, how ever. continued in control and carried | forward the development of the property l until the new mileage after five years of l operation has shown it's earning capacity | and proven the ability of the company to return to fixed rate of payment upon all the money that went into the construction of the Atchison road, save that represent ed by the capital stock.
 l could not have been proposed before-to cure the one defect in the reorganization plan, and make provision for improve ments upon capital account for present | mileage for several years to come. It will substitute second mortgage per cent. bond for the present income per cent.
 bond, but present income bondholders | will get 24 per cent this year, and at the
 rate of 24 per cent. for the fifteen months from July 1 next, then 3 per cent. for one | year, 3a per cent. for the next year, and
 the regularly established rate of 4 per l cent. thereafter, in effect making the pres l ent income bonds into per cent. mort gage bonds with 21 per cent. declared upon them payable September next, but waiving in the aggregate during the next three years per cent. of their fixed per l cent. annual interest.
 AS per cent. mortgage bond Is far su- perior to g per cent. income bond there is no ground for complaint from the holders of the incomes, and stockholders, while be- ing benefited by the reduction from per cent. to 4 per cent. in the charges ahead of them, have the credit of the company placed upon such a basis that they can inn prove their property during the next four years by the proceeds of S20, ,000, ,000 of the new 4 per cent. bonds; and when the prop erty has thus been improved, there will be no more interest charge than at present between the stock and the first mortgage bonds. Meanwhile the road will be pay ing but graduated scale upon the second lien increasing after 1898 by only $400. 900 per annum.
 The details of this amendment to and completion of Atohison's great reorganiza- tion plan have been worked out in a mas terly manner and will be read from tho official advertisement of the company. published to-day, by all investors in rail road properties, as well as by the %. 900 or more oirectly interested in the shares and pFnpsEty. -sasten. .Hsxs arTsss, s'' 4