New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-01-21
ATCUISON'S COLLATERAL INTACT.
An APPARENT DISCREPANCY hEdA""''" '''
FLOATING DEBT EXpLAINED-WHAT
THE COMPANY NEEDS

THE tOMfAN' AN''A''
Boston Jan. 2o.-The Boston News Bureau says
There il no foundation FOR the report that A'ch-
n.s oo,,,teral behind its floating debt has been
,acrlaced Some OF the bankers may nave So''
sbor, but every loan has been renewed. ana so
,.r a. tho Atchison treasury Is concerned All inc
collateral Is intact. There have been no inSSti''
men,s OF Atchison affairs In any way We "h"e'
atood the floating debt at the time OF the Te'e'V''
shin TO be s. 100000 and the receivers statement o'
81 10000 was surprise to those weii-ihtor"''u'
have now the explanation OF the apparent discrep-
orcv The floating debt was and Il SoHhV'' Sc
oured by about S4.OO0e0. at par value in bonds
hut as there were 100000 In drafts in transit the
receivers Included these in order not 10 unueres"
mate the indebtedness. but we understand ,"a'
these drafts have now all been returned ana l'a''
outside the January l coupons. the floating deo' Is
under $4,000.
or course II Atchison stock were held by rev
interests instead Of II go people, the simplest way
ont OF the embarrassment would be contribution
Of $40 a share and the freeing of the company from
all indebtedness outside the bonds. but such an
assessment cannot be collected from 80 large
number of stockholders without foreclosure whlch
yvould be more expensive for all the bonds In de-
fault as well as involving sacrifice of the valuable
territorial charter Of the company. ana DONG nh-
necessary Injustice to stock holdings representing
a cash expenditure In the property OF more imam
$50 UOGO , ,r,,,,
t.c present DEPRESSION and sin months srace Is
allowed by the terms Of the general mort lt
Tb.re IL no r.as son % .Xpect any worse condition
of affairs than has been battled with the last SIX
months In Western railroad operations. ana no ne
crssity Is apparent for any reorSahiEatiom ~
Atchison finances. except In the nature OF niue
funding. secured by the company's coupons. OF,
say. perhaps two coupons on tn general hlortsdse
As and six on the second MORTGAGE bonds mat
were formerly income bonds. the separation o, 'ns
Colorado Midland. and In some rounding ou' a., VI
the original reorganization plan as RESPECTS a.,
lantic and Pacific. II Will be remembered that
retirement OF the Atlantic and Pacifc. ana inns
worth Of the Atlantic and Pacific. go , -
There Is no need for Interference with the 81.
Louis and San Francisco Railroad COMPANY, eN-
cept possibly the funding OF Few coupons. so
that earnings may free the company OF hoatng
debt. and leave the whole Atchson system III
strong financial position. But there Is no necessity
for any immediate action. as the next sixty DAYS
liable 70 be important In PROCESS OF change
affecting the general situation Inc important
matter is earnings. and II those r Tn,, before
July Atch!sOn should have no very ditcuit prop
lem TO settle its financial base. 100
The Atchson reorganization OF 1889 was complete,
sound Just To every sectirty-hold ana effective.
When IL issued. In October 1882 acquisitions of
Colorado Midland and St. Louis ana San Francisco
were not contemplated. These properueS d'ducted
from Atchison to-day, leave the latter under the
1889 reorganization sound property III every re-
debt
The capital stock of the Atchison Company may
look large when stated at SO2,UUVv, but II looks
smaller yet In the market. where II Is selling for
about $l.JO a mile. although 1t represents cash
money from stockholders pockets OF ABOUT NWO
a mile over and above the bonded debt
1t should not be forgotten that the ultimate basis
OF security for the second mortgage bonds Is ex-
acty the same the basis underlying the So
general mortgage oris * not for slooco as is
popularly supposed, but for S3ou"@ OF which
f1OCo"o was made mortgage Is ana 1SOoOO 900
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