The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-12-29
Terms of the Proposal That Were
Announced i'm n Circular Letter
To the stock Solders.
RANDALL MORGAN IN THE CITY
HE is LARGELY INTERESTED IN
STREET-RAILwAY COMPANY.
Work VIII BE Speedily Begun ON the
Terminal station After the
Deal Is Closed.

The stockholders of the. Indianapolis
Street-railway Company will vote their
shares this morning at 10 O'Clock at the
offices of the company I'm the Claypool
block for the acceptance or rejection OF
the proposal of the indianapolis Traction
and Terminal Company TO lease the In
dianapolis system for a period of thirty
years The acceptance of the proposal,
which now appears to be about unanimous.
means that by Wednesday at midnight the
entire business of the Indianapolis Street.
railway Company will pass into the hands
of the Terminal and Traction Company,
as the lease is to become effective on Jan.
i, 1903.
The terms of the proposal were an
nounced TO the stockholders of the In
dianapolis company on Dec 9. The term
inal company proposes to assume all re-
sponsibility for maintenance. construction
and extension of the present system; to
pay all interest on the bonded debts OF
the Indianapolis Street-railway Company,
of the old Citizens Street-railway Com
pany and the Broad Ripple Transit Com
pany, besides paying the following divi-
dends annually upon the capital stock OF
the Indianapolis Street-railway Company:
1903. 2ik per cent; 1904. slk per cent; 1905.
Az per cent; 1906. 5lk per cent. and for
1907 and each year thereafter until the
termination of the lease per cent.
DISTRIBUTION OF STOCK.
In addition TO these obligations
ton and Terminal Company agrees % ulsk
tribute pro rata to the shareholders of the
Indianapolis Street-railway Company s.. .5oo-
coo of full paid and nonassessable stock Of
the Traction and Terminal Company.
On receiving this proposal the directors
of the Indianapolis Street-railway Company
adopted a resolution setting forth their
reason for indorsing the proposition and
submitting il 10 the stockholders. In this
resolution il was recited that the Indianap-
oils Street-raiway Company had exhausted
its authorized stock ana bond issues IN the
reconstruction and betterment of its sys-
tenn and that there now required a
large amount to make extensions. construc-
tion of new lines, additions to the rolling
stock, increase of power capacity and other
obligations of a constantly growing busi-
ness, all of which were items property
chargeable to capital, but which II made
must be paid out of the earnings of the
company.
The resolution further stated that the
Traction and Terminal Company was now
preparing TO carry out its contract with the
city in the construction of the interurban
terminal station and attendant tracks. and
that IL proposed to unite the systems under
the terms above mentioned.
NO OPPOSITION TO DEAL.
Since the notices have been sent out not
the least opposition to the deal has been
disclosed. The stock of the Indianapolis
Street-railway Company is now s5.0oo.0oo.
and II is bonded for 100000. The bonds
are per cent, but the stock has never
paid a dividend and would not in all prob
ability for several years. The proposal OF
the Traction and Terminal Company af-
fected the stockholders of the indianapolis
Street-railway Company only, 1t inssret(
them dividends upon their holdings which
otherwise were of a remote possibility. in
pany's system. consequently there is little
doubt that the ratification of the proposed
lease will be practically unanimous.
In addition to the dividends insured the
proposition of the Traction and Terminal
Company to distribute 81 10000 OF its own
stock to the shareholders of the Indianapo-
lis Street-railway Company gives them ex-
pectancy of dividends in the future upon
that.
The Traction and Terminal Company will
probably be reincorporated to-day or to-
morrow for s5O00,O00. Ii was Incorporated
last July for $4,000. with w. Kelsey
Schoepf, of Cincinnati. as president The
company has an authorized bond issue OF
this with the S. 100000 of stock and si0.-
000,O00 of bonds makes the Indianapolis
100000 Upon this capitalization the fixed
charges In interest and dividends after
1907 will amount 10 s1.01000. The gross
annual earnings OF the company have not
been reported since 1900 except approx
imately, but IL Is understood In financial
circles that they amount TO about ST.
10000.
WORK WILL BEGIN.
The completion of the deal will be
speedily followed by the details of the
plans for the terminal station and the
early commencement OF the work OF
track extension incident to the terminal
facilities of the bond issue OF s5.ooooo0
which the Traction and Terminal Company
has authorized. about s5ooo.Ooo will be re-
quired for the erection OF the terminal
station and the construction of the lines
required under the Terminal Company's
franchise.
Randall Morgan. of Philadelphia. repre-
senting the majority stockholders In the
indianapolis company. reached the city
Yesterday for the purpose of attending the
stockholders meeting. All OF the notices
that were sent out were accompanied by
proxies returnable 10 the secretary OF tho
Indianapolis company and In this way IL is
believed that most OF the stock will be
voted Mr.. Morgan IL associated with the
Widener- Elkns traction syndicate OF
Philadelphia. and during his stay I'm the
city is the guest of President MCGOWAN OF
the Indianapolis company. Presidcnt
Schoepf, OF the Traction and Terminal
Company. will come 10 the city from Gin.
cinnati to-day.
For the purpose of facilitating the con-
struction work which the Traction ana
Terminal Company is obligated by sts
franchise TO do. construction company
Incorporated In New Jersey as the Indiana
Company. with $l.oo0.ooo capital. has been
organized. This company Includes i'm its
directory many OF the prominent pembers