The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-10-15
FUTURE OF THE MONON
THE REORGANIZATION OF THE L.,
". A. & c. MORE FULLY SET OUT.
Annual Meeting of the T., ID. e. w
StockhoIders-No i'm Grand
Trunk Directors or officials.

1t Is proposed that a new company snail
be formed to be called the Chicago, Indian
apolis & Louisville Railway ompany
which shall acquire the existing property
and all further assets above mentioned APP
pertaining to it, namely, the indianapolis
terminals, Lafayette shops, Kentucky
bridge bonds, equipment. etc. The new Sc
curities which the company is to issue will
amount to SIS. 900. 600 of bonds. IS, 900 of
preferred stock and $40, 800, 900 of common
stock. The new bonds shall be dated July
/, 1897. and shall be secured by a first lien
upon all the railway of the company, its
ownership in the Chicago 81 Western In
diana railroad and Belt railway, the ter
minals in Lafayette and Indianapolis. its
equipment and all other properties of the
company, subject only to the s., 900,0 goo ex-
listing divisional bonds, for the
of which an equal amount of refunding
mortgage bonds is reserved. To provide the
capita needed by the new company it is
proposed to sell for the sum of ~, 100, 900 in
cash new bonds to the amount of 1880, 900.
together with $3.50, $50 preferred stock and
$40, 500, 900 of the new common stock. A re-
sponsible syndicate has made a proposition
to purchase the same and has entered into
an agreement with the committee to allow
the holders of the old preferred and COM
mon stock extinguished by the foreclosure
the first opportunity of subscribing for the
new common stock on the following basis:
The existing (old) preferred stock shall
have the privilege of subscribing for an
equal amount of common stock in the new
company at $3.50 per share, receiving in adj
dition thereto new preferred stock equal to
the amount of cash paid. The existing ODD
common stock shall AVE the right to sub
scribe at $3.50 per share for an amount of
common stock in the new company equal to
nnG-fhfr1 nf N aXiGffnO MIR nnmn nn
stock, receiving with each subscription in
addition new preferred stock equal to the
provisions will be as follows: Each 800 Of
existing (old) preferred stock will receive
800 OF new common stock and $3.50 of the
new preferred, paying therefor $3.50 in cash.
Each holder of $500 of existing (old) COM
mon stock will receive 500 of new common
and $3.50 of new preferred upon payment Of
$3.50 in cash. The syndicate is not to be
required to extend the privilege of sub
seripti9n to the capital stock Of the Chi
Company (the new company to be organ
lied to purchase the property beyond the
bondholders' committee is being formed to
oppose the plan of reorganization.
No hange on the Grand Trunk.
There was a large attendance yesterday
at the annual meeting of the Grant Trunk
railroad of Canada, which was held I'm Lon
don, England. The president, Sir Charles
Rivers-Wilson, said he had been accused
of ordering an expensive new car. Such a
car, he admitted, had been constructed,
but, he added, he did not think any atten-
ton would have been paid to the circum-
stance had it not been for the lively i'm
agination of Canadian reporters. Continu-
ing, the president said it was also charged
that he was Americanizing the system,
while, as a matter of fact, very few Amer
lean officials, considering the large staff,
had been appointed, Later Sir Charles
hnDppd tho Ct0nkhnJ6arc fn No nnfiapt
not propitious. although the horizon, he
said, seemed to be clearing. The Ameri-
cans, he said, were in the throes of a
financial crisis. but possibly in a few weeks
the crisis would be over, and from infor-
nation which he had received he believed
the result would Be a triumph for sound
financial principles, which would, in his
opinion. bring about a revival of business,
in which the North. American railroads
would share. Finally, the president said
that he wished it to be distinctly under
stood that no scheme for reconstruction
would be entertained by the board of di-
rectOrS. The annual report was aQODted.