The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1894-07-19
FINANCIAL.
REORGANIZATION
Ar|ison, Topeka ( Santa
FG Railroad Company.


The Stockholders of the Atchison Topeka &
Santa Fe Railroad Company, realizing that it
will be necessary for them to furnish the COM
pany with new capital, and the Second Mort
gage BondholGers, being asked to make conces-
sion for the future welfare of the company, are
uniting in a reorganization of their own crea-
ton, rejecting the plans of the General Reor-
ganiZation Committee" The members of that
committee have informed us that they ICON
sented to act as general reorganization COM
mittee at the express request and with the di-
rect cooperation of the officers and directors
of the Atchison Company" 1t follows, there
fore. that the voting trust which they proposed
would have resulted in perpetuating the present
management, Eand $30,OO0,000 OF the new
bonds which they undertook to put ahead of
the present second mortgage would have been
left in the hands of that management.
But the Atchison managers came out of the
courts in 1889 and were given fresh start
with So, 600. 600 in cash and over $4,000, 600 In
bonds They have since bought railroads at
fatal cost, and now ask for $17,OoO.O00 more
to get out of the courts again.
Both bondholders and stockholders have
become unanimous in the opinion that the
time has come when the Atchison policy of
railway expansion and the financial methods
which have twice brought the company into
the custody of the courts shall be forever
abandoned; that hereafter no floating debts
shall be incurred, and that the officers shall de-
vote themselves to development of business
and economy of operation.
The stockholders and second mortgage bond
holders, being represented by the undersigned,
will cooperate with each other for the rescue and
preservation of the valuable equities of which
they are the joint owners; and the undersigned
are charged with the responsibility of effecting
a reorganization which will accomplish this re-
lsut. will avoid the issue of $65 100000 of new
would destroy the future mi rket value of the
stock, and which will prevent the degradation
OF the second mortgage. The general
will retain their present status, and the
holders OF second mortgage bonds will give
such temporary relief to the company, in re-
that stockholders will be justified in making a
new Investment to furnish the company with
new capital.
The Undersigned have taken steps to asoer-
tain the exact financial condition Of the Com
pany and will obtain the best estimate posi-
Die OF the net earning power of the system I'M
der varying conditions.
The amount of the required assessments an d
tne extent OF the concession from the second
mortgage bondholders will depend upon this
Information. and will be made as little burden
some as sound finance will permit, but the i'm
peritive necessity is realized Of placing the
company upon financial foundation which
frugal management Will render permanent
Upon the payment of the assessments the
stockholders will take the property into their
own hands,
Holders of "a" and .'B" bonds and holders
OF general mortgage bonds are requested to de-
post their holdings promptly, either with the
Farmers Loan & Trust Co. Of New YORK, or
the Atlantic Trust Co. of New York, or The
Amel lean Loan & Trust Co. of Boston, where
copies of the trust agreement and circulars ex-
Will be furnished,
mediate necessity for uniting their votes aud
their influence, and are requested to deposit
their holdings at once with either of the above
repositories, in pursuance of the trust agree
ment above referred to.
ATCHIS0N PROTECTIVE REORGANIzA-
TON COMMITTEE:
HON. THEo.W. MEYERS, l
HON. GEN. BENJAMIN IF.
TRACY, Ex-Sec'y of the
WILLIAM II. MALE, Prcsi- New York.
dent OF the Atlantic Trust
HENRY CLEws of Henry
C1ews g. Co., Bankers,
EDWARD N. TALLER,
MARTIN VAN buren, EDGERLY, Presi-
dent of the Mass. Mutual Life ms. Co.,
Springfield, Mass.
HON. CHAS. III. ALLEN,
President of the Central
National Bank land Home
Savings Bank, Boston.
MARQUIS f. DICKINSON,
Jr.,Firm of Hyde, Dickin-
son g. Howe,
F. D. CARLEY, Secretary,
80 Broadway. New York.
GEN. BENJAMIN H. BRISTOW,
Ex-Secretary of the United States Treasury.
SIMON STERNE. ESQ.,,
NEWMAN ERB' ESQ.,,
of Counsel. ily19d1t