The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1894-06-21
ATCHIsoN REORGANIZATION.
Details Of Plan Proposed by Reorganiza-
ton Committee.

NEW YORK, June 2I.-The plan of reor-
gauiZation of the Atchisou company has
been submitted by the reorganization COM
mites. The plan contemplates foreclos-
ure. either under che general mortgage.
dated October 10, 1859, or under the second
mortgage, dated May /, 1892, securing the
so-called A and B bonds and the forma-
ton by the purchasers at such sale OF q
new company which will be freed from all
obligations of the present company except
such rs are PRIOR 10 the mortgage fore
closed, or are assumed By the new COM
pany.
If foreclosure Is had under the general
mortgage, the new company will provide
for the payment of past due interest on
the general mort gage bonds aud will Issue
new bonds to the holders of the general
mortgage, such new bonds to have the
same lien aud 10 be the same in terms as
the old bends.
Under the second mortgage the new
company will provide for all past due in
tersst on the general mortgage bonds and
will also assume the payment OF principal
and interest of such bonds. The company
will issue SOP 600 of capital stock.
TIE company shall execute a second
mortgage. subject to the genera! mortgage,
but superior in lien to the new income
mortgage, and covering the same property
as the general mortgage, such second mort
gage to secure S35000,000 4 per cent fifty
year gold bonds, of which not more than
s. 900, 600 may be issued for the payment
of floating debt and other cash require
ments of the reorganization. and IN addi-
ton not more than s.. 600, 900 in any one
wear for improvements. equipment and the
general purposes OF the company.
The new company viii create an issue
of fifty-year income bonds secured by a
mortgage covering tie same property as
the new second mortgage. The total
authorized amount of such income bonds
shall be limited 70 $l1j. 600. Such in
come bonds shall be entitled TO per cent
interest per anuUm, payable annually, cut
of net earnings. The income bonds shall
be issued and delivered as follows: To the
asserting holders of present second mort
cages, bond for priuciDal and interest to
date of new bonds lat 105) SS5, COO 900.
To holders of outstanding 5000 600 B
bonds for principal and interest To date of
new bonds lat 1l2) 5000. 000
To the asserting holders of capital stock
who shall paw assessments OF Sl2 per share
at par, So. 240. 600.
Fer the purpose of acquiring securities
of the auxiliary companies as deemed
advisable by the general committee, 3d.
169, 600. Total, Sis 0J0,0 900 The stock of
Inc new COulDHEh, less sum uliiOuub hS
may lie required to qualify directors.
is to be held Ivy q trust
company until interest Mt the
rate of ) per cent shall have been
earned and paid on the new income bonds
for three consecutive years, and negotiable
trust certificates will be issued by such
trust company against the stock held i'll
trust
Such arrangements shall be made MS
will IN tha hnlHarS of ha in
come bonds and of the stock trust certifi-
Gates the same voting power as if they
were ali stock holders.
When interets ut the rate OF per cent.
shall have been paid ia cash on the new
income bonds for three consecutive years,
the trustees shall deliver the stock to the
holders of the trust certificates aud the
trust shall cease.
The asserting holders Of stock shall re-
ceive negotiable trust certificates repre-
senting one share Of new stock for each
share so deposited. upon which the assess
ment has been paid In full, together with
income bonds for the assessments.
The auxiliary companies, namely. the
Atlantic and Pacific, the Colorado Mid
land, and the st. Louis and San Francisco,
10 be reorganiZed il deemed advisable, ac-
cording 10 plans hereafter submitted.
The first board of directors of the new
company shall be selected by the general
reorganization committee for the purpose
of creating the new securities, and imme-
diately thereafter the board shall be so
changed that it viii consist Of such per-
sons as shall have been selected by vote Of
the asserting holders OF "a and "B''
bonds aud stock in manner to be pro-
vided in the reorganization agreement.
The bonds aud stocks 20 be deposited
under this plan are as follows: Atchison,
Topeka and Santa Fe general mortgage 1
per cent, 4 per cent second mortgage, class
A; 4 per cent second mortgage, class g.,
capital stock Colo RADIO Midland first
mortgage, g per cent; consolidated mort
gage, per cent; guaranteed trust, per