The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-04-11
BY DIRECTORS,
Endorsement of the Plan for
the Reorganization of the
AtChiSOn.
Methods by Which Interests of the
Stockholders Are to Be
Protected.

NEW YORK, N. Y, April 10.-The board
of directors of the Atchison, Topeka and
Santa Fe Company met to-day and issued
the following circular letter to the stock
holders of the company:
When your directors were elected they found
your company bankrupt, its property in the
hands of receivers, its defaulted interest
amounting to many millions of dollars, its
floating debt more than $10,O00,000, its re-
pairs. renewals and improvements not up to
date, and its business badly demoraliZed. In
addition to this the reorganization committee
had long been considering the problem OF re-
organization, and had already announced and
withdrawn one plan. By the time your direc-
tors had acquired full knowledge of the con-
ditions and requirements of your company the
original reorganization committees, desiring
perfect unity of action, had arranged for com
mittee, known as the joint executive reorgan-
ization committee, and this committee had
taken up the task of making q. plan where the
first committees had left it off. A plan has
finally been formulated and announced.
During the time through which the joint
executive reorganization committee has de-
voted itself to forming this plan your directors
have given unceasing attention to it, and have
left nothing undone to insure on the part of
the committee a knowledge and consideration
of all possible and pertinent facts and opinions
relating to a proper recognition of the share
holders. In every feasible way the views of
your directors and individual shareholders and
their friends have been brought to the atten-
ton OF the committee. What has been COM
municated to it has also been communicated,
so far as was proper, to many independent
parties of great financial strength, whose in
terest in the property has been repeatedly and
earnestly appealed to or solicited. No new in
terest seemed willing to undertake so great q
task as the one presented. The Joint executive
reorganization committee, therefore, has been
alone in the field so far as relates to the actual
PRONUNCIATION of plan. The reduction of the
assessment from S12 per share in the stock, the
amount fixed by the first committee, to $40,
giving the preferred stock for this assessment,
and the reduction of the fixed charges, so as to
insure to the stock what seems to be absolute
immunity from the danger of foreclosure in
the future, are provisions in line with our APP
peals for fair treatment to shareholders.
Though the charges ahead of the present stock
are somewhat increased, the property and its
possibilities are bettered, and the net result is
undoubtedly q great gain over existing con-
dttions.
In completion of the plan, it was underwrit-
ten by Messrs. Barring Bros & Co. of London
and other strong foreign and American bank
ers, who should be able to estimate correctly
the probable future of the shares. These under
writers have assumed the liabilities of paying
the assessment and taking the stock. 1t is
evident they would not have done this but for
the belief that the stock would have its present
value or a higher one. The outlook is, there
fore, that the general mortgage bondholders
will deposit their bonds, the plan be effective
and an entire reorganization of the system be
speedily accomplished.
In view of these considerations we approve
the plan, recommending that the stock be de-
posted and the assessment paid, and the re-
organization be facilitated in every possible
way. william L. Bulle, James A. Blair, Edwin
Berwind, B. P. Cheney, H. r. Duval, Thomas P.
Fowler, Charles R. Gleed, Samuel P. Lawrence,
John A Mccall, George r. Nickerson, Thomas
A Osborne Frank K Sturgis