New-York tribune., 1901-10-12
MEXICAN MA TTONAL CHANGES
THE FINANCES OF THE RAILROAD COM
PANY TO BE READJUSTED.

Large holders of the various securities of the
Mexican National Railroad Company, having care
fully examined the affairs of the company besides
seeking expert advice, have reached the concu-
sion that the future prosperity of the road depends
upon the changing OF the gauge and the making
of other necessary improvements in order TO estab
Hsh standard gauge main line from Laredo
Tex, to the City of Mexico. thus preserving the
roads through traffic. Expert estimates of the
&, cost or changing tue gauge and making other
necessary improvements, including the building of
the FL SalIo extension, about $40 200 900. 1t is
estimated that within two years after these i'm
provements are completed the net earnings of the
road Will amount TO about s21GDeOO. United States
currency and that thereaf the met earnings will
increase from year TO year < g.. d..
readjustment cot the finances of the Mexican
National Railroad Company becomes necessary to
carry out the purposes outlined. Speyer & Co, and
Kuhn. Loeb & Co, of New-York and Speyer
Brothers, of London. have prepared a plan Of re-
adjustment and have agreed TO act readjust-
ment managers. A. syndicate has been formed TO
provide all the cash requirements. under the plan
which has been approved by the directors of the
Mexican National Railway Company. Limited of
London, who hold on deposit large majority of
the Mexican National Railroad Company per
cent second mortgage series.A and series bonds
The plan of readjustment provides for the crea-
ton of the following securities:
First 600 prior lien AZ per cent gold bonds
due 1926 These bonds are to be secured by a
mortgage on all the property Of the Mexican Ma
securities of the Texas Mexican Railway Company,
including the proposed FL SatO extension. The
right will be reserved. increase this issue not 10
exceed 100000 for the general purposes OF the
company, under proper restrictions. The bonds are
subject redemption six months notice, at lO5
and accrued interest of the amount C20O0O9O re-
ferred to; &0T79000 Will be applied in partial eX-
change for existing bonds and &22l,00 will be pur-
chased by the syndicate 20 provide the cash re
quirements of the plan.
Second-sl5 900 600 first mortgage consolidated
per gold bonds. due 1851, subject only TO the
prior lien mortgage. These bonds will be applied
as follows In partial exchange of existing securi-
ties Sll 6S7 So purchased by syndicate to pro
vide cash. $3.595312 30 The amount Of these bonds
may be increased by S15O00.000 of which s6,@0Oo0
may be used for betterments and improvements
and 50 600 600 for acquisitions and extensions.
Third-$25 900 010 per cent non-cumulatve pre-
ferred stock. This stock VIII be applied as follows:
In partial exchange for existing securities $50 66S,
625; syndicate purchase TO provide cash. S,cnON;
in compensation for surrender Of all rights Of the
Mexican National Construction Company, $4,000;
for contingencies. $l-936,3I5
Fourth $SS $4,000 common stock to he applied In
exchange for existing capital stock, dollar for
dollar.
Speyer & Co, of New-York will act de-
positary under the plan, and Speyer Brothers Of
London. and Teixers de Mattos Brothers, of Am
sterdam. will receive deposits in Europe. De-
posits may be made and after October H.