The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-08-10
ROADTO THE STRAITS.
New Peninsular Company Pre-
pairing to Build.
OLD LINE ON A NEW FOOTING
Washington Southern Reorganized and
Put IN Position to Extend Through
the Olympics.


recently organized from the Washington
Southern Railway Company and the Sat
SOD Railroad Company, is already prepar-
ing for its extension TO Lake NawatZei.
and now that the various debts If the old
company have been funded successfully
and its financial complications are. at an
end, the new company. ii is expected. will
do unusually well in the territory IL Is
about to penetrate. Those who are linanc-
ing the scheme are said to be placing the
property in fine condition for heavy
traffic. The particular object of the cor
poration is 10 build railroad from Big
Skookum, or Hammersiys inlet, on the
Sound. northwesterly 10 some point on
the Straits of Fuca, thus tapping the re-
gionS of the Olympics.
Since the decision by Judge Irwin at
Montesano early in June last confirming
the sale of the properties Of the wash
ington Southern railway 10 j. ID. Low
man. as trustee. for numerous bondnold-
ers and creditors of that company, the re-
organization has gone forward without
further interruption. Mr.. LowInan, as
trustee. has conveyed the properties 10
new organization called the l'eninsular
Railway Company. The board of trus-
tees is composed of K. r. Spencer, Angus
Macintosh. Lester Turner. George f.
Gund and y. H. Anderson. The fenin-
suaT company has already executed and
recorded a mortgage 10 the Security Saw
ing and Trust Company, of Portland. Or,
as trustee. for a new issue of bonds TO
carry out the scheme of reorganization.
Result of a Compromise.
The reorganization is evidently the re-
suit of considerable concession on all
sides. II appears from the reorganiza-
ton agreement that three classes OF in
cumbrances formerly rested on the prop
erty-receiver' certificates. first mort
gage bonds and second mortgage bonds.
The receivers certificates, the FIRST lien,
on which nothing had been paid, were due
on demand with per cent. interest The
first mortgage bonds were long overdue
both as to principal and interest. The
second mortgage bonds, the largest of the
membranes, were overdue as to inter-
est and liable to be declared overdue as to
principal.
Under the reorganization plan the hold
ers OF the receivers certificates consent
TO take twenty-year bonds in the new
company at per cent. and these bonds
are merged In general issue compre-
hending the first and second mortgage
bonds of the old company. A simple pref
erence is given in the issue 10 :he bonds
thus substituted for the receivers GER
tifcates. and they are not given an in
dependent mortgage. AS TO the first mort
gage bonds these have all consented 10
be pooled without preference with the
second mortgage bonds which, as before
stated. are considerably the larger class.
The first mortgage bonds are chiefly held
by the National Bank of Commerce. \
few are held by Charles and Lucy Hop
kins. whose recent contest at the sale at
tracted considerable attention and result
ed unsuccessfuliy at Montesano The sec
ond mortgage bonds of the old company
were principally held by the Merchants
National bank which, however, consents
In the reorganization agreement to take
about one bond in the new company for
two in the old, as IL had held two bonds
for every thousand dollars of It's claim
The total result of the new issue shows a
decrease of more than one-fourth from
the old bonded debt. and consequently
new bond is worth considerably more
than an old one.
The Creditors and What They Get.
The principal persons and corporations
entitled TO receive new bonds are: The
Merchants National bank. the First Ma
tional bank the National Bank of Com
merce. the Bank OF British Columbia,
Charles and Lucy Hopkins. A. S. Neal p.
p. Healey. Henry & Balch and the Seat
tie National Bank. The agreement pro-
vdes for the acceptance of its terms by
the proposed distributes of the new
bonds and those who have resisted the
scheme OF reorganization or refused to
accept its benefits are excluded. Except
ing the Hopkins interest, il is understood
that all the distributes have accepted.
the provisions of the reorganization agree
ment as all the old bondholders have been
recognized in the distribution.
The following table. compiled from the
reorganization agreement. shows the
amounts which IL is agreed are due 10 the
various creditors of the Washington
Southern. in addition TO any debt incurred
by IL on account of its assumption of the
Satsop Companys or the Seattle Lumber
Company's liabilities, and also shows the
amount Of new bonds Of each class 10 he
given 10 each creditor in settlement OF its
claim: