The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-09-06
Finanfial.
Kansas City, Pittsburg & Gull
REIMBURSEMENT.

TO THE HOLDERS OF BONDS Ann
STOCK OF THE KANSAS CITY, PITTS.
BURG q GULF RAILROAD COMPANY.
AND OF THE MERCANTILE TRUST
COMPANY'S CERTIFICATES OF DE-
POST FOR THE SAME.
Tho undersigned have caused the accounts ana
properties of the Kansas City. Plttsburg n Gulf
Railroad Company to be examined by competent
experts, and. having now duly considered the r,.
ports made by those experts. announce that pursu.
ant to the agreement of March 3th 1902 they hays
adopted
READJUsTMENT PLAN,
the salient features Of which are as follows:
"a Formation Of q new company for tho acoui
.jton of the property of the Kansas City. Pttsburs
L Gulf Railroad Company proper.
The Committee deems It unwise at this present
juncture to provide for the inclusion of the Sub.
urban Belt Railroad properties. basnK its opinion
upon the statement OF it's experts. that terminal
facilities at Kansas City be had at greatly re-.
duced cost per annum. and upon the fact that
the demands Of the holders of its securities are
such as would impose upon the company
n1ed charges which it's earnings would not warrant
The Port Arthur Channel and Dock Company,
which is also set aside for future consideration,
has at present virtually no earnings. although 10
has already issued bonds to the oItent of 81 $780,
ooo and it's works are still far from compilation.
ca Issuance by the new Company of the follow
ing securities:
Prior Lien Mortgage four per cent. Gold
Bonds SIS, 100000
Adjustment Mortgage four per cent.
Gold Bonds interest non cumulative
until 1905 $4,000. 900
Preferred stock four per cent
cumulatv ..-.-......-.........'.-.-.. zoooo.ooo
Common stock NEUTRALITY-SUSPICIOUS.. 25.ooo.ooo
To be apportioned ns follows:
To holders of present First Mortgage Bonds for oaoh
81, 900 bond:
$500 in Prior Lien por cent. Bonds
$500 in Adjustment Mortgage 4 per cent. Bonds,
$500 in preferred stock.
S25 in cash. for April coupon.
To stockholders who pay SIS per share upon pre-.
sent capital stock, for each share OF said stooki
$3.50 in Adjustment Mortgage Per cont Bonds,
$3.50 in Preferred Stock
$4,000 in Common Stock.
This plan further provides . cash resource Of
90. 4So. 900. a. follows:
From sale of Prior Lion per cont.
Bonds at par. SO 900 900
From stockholders NEUTRALITY-SUSPICIOUS.. 8.4bo.ooo
se,45o, 600
which amount has been underwritten by q guaran-
teo syndicate.
There will be reserved in the Treasury:
Prior Lien Bonds 100000
Adjustment Bonds 1,o2e,ooo
Preferred Stock 11.375.ooo
Common Stock. 100000
A careful examination Of tho plan recently pro-
muignted by q Ph1ladelphiA Committee, taken in
connection with tho reports of the experts above
referred to, have convinced your Committee that
the Philadelphia plan Ii too wide in its scope. that
Il proposes to impose upon the H. G.. P. Il G.
property charges which 1t cannot earn. and that
for these and other reasons such plan must be
enrdsd 90 o makeshift which may tide present
difficulties. but only at tho expense of the future
prosperity Of the Kansas City. Pittsburg and Gulf
Railroad proper.
Holders of bonds and stock Of the Kansas City.
Pittsburg Il Gulf Railroad Company who have not
0d hal