The Montgomery advertiser. [volume] (Montgomery, Ala.) 1885-1982, 1902-08-01
ROCK ISLANDS SCHEME
FORMAL ANNOUNCEMENT OF
ROADS REORGANIZATION.
capitalization is $15o,ooo,ooo, OF
Which $54, o0o,o 900 is Non
cumulative Preferred and
SOC, 900, 900 Common Stock

New York. July s2.-Formal announce
ment of the reorganization of the Chi
cago, Rock Island and Pacific Railroad
Company was made today in circular
letter which was sent to all stockholders
of record. With few exceptions, the
main details have already been publish
ed. The circular says in part:
Chicago, Rock Island and Pacific Rail-
road Company of Iowa hereby offers to
purchase all the outstanding stock of the
Chicago, Rock Island and Pacific Rail-
way Company certificates for which shall
on or before the first day of September,
1902, be deposited under the terms of this
offer with the Central Trust Company
of this city. For each share of stock of
said railroad company of a par value OF
500, so deposited. to deliver 500 in its
per cent gold bonds of 2002; SO in the
preferred stock of the Rock Islands Com
pany (of New Jersey. and 500 in the
common stock of the Rock Island Com
pany (of New Jersey.
Chicago, Rock Island and Pacific Rail-
road Company is a railroad corporation
organized under the laws of the State of
Iowa, with power to acquire the lines Of
railroad and the capital stock of the Chi
cago, Rock Island and Pacific Railway
Company. Its authorized securities are:
s125 100000 stock; 1000 4 per cent gold
bonds, known as Chicago Rock Island
and Pacific Railroad Company 4 per cent
gold bonds of 2002
THE per cent gold bonds of 2Oo2 are
limited to the aggregate face value of
$75.00o.00o and are to be secured under a
trust agreement with the Central Trust
Company of New York by deposit and
pledge Of all shares of the capital stock
of the present Chicago, Rock Island and
Pacific Railway Company which may be
acquired under this offer of purchase or
otherwise, and can be issued only to a
face amount equal to the par value OF
the stock pledged under the trust agree
ment The bonds are to mature Novem-
Der /, 2002 to bear interest at the rate of
4per cent from November l. 1902, payable
semi-annually on the first days of May,
and November, both principal and inter-
est to be payable in the city of New York
free of tax.
THE Rock Island Company is corpo-
ration organized under the laws of the
State of New Jersey. 1t has no mort
gage Indebtedness. Its authorized capi-
tai stock is $50 000 900 in classes-S54 900, 900
of non-cumulative preferred stock, and
SCI, 100000 of common stock.
1.-THE preferred stock is entitled to non
cumulative yearly dividends at the rate
OF 4 per cent for the year 1903 and for
each and every year thereafter until and
including the year 1909; at the rate of 5
per cent per annum for the year 1910 and
for each and every year thereafter until
and including the year 1916 and at the
rate OF per cent per annum thereaftr.
1.-THE preferred stock is also preferred
as to capital. Holders of the stock are
entitled to elect a majority of the direc-
tors, but such privilege may be surren-
dered with the consent of the holders OF
two-thirds in amount OF the preferred
stock.
1.-The Rock Island Company has enter
ed into agreements with the Chicago,
Rock Island and Pacific Railroad Conn
paAly (of Iowa. under which, In con-
sideration of deliveries Of its preferred
and common stock for the purpose or the
foregoing offer, the Rock Island company
will become the owner, as issued, OF the
capital stock of the Iowa company"
Accompanying the circular and under
date of Chicago, July 81 Is resolution
adopted by the board of directors recon-
unending the acceptance of the reorganiza-
ton plan, The new company has been
organized with this list of directors; r.
r. Cable, Marshal Field. H. c. Frick,
William II. Moore, d. G. Reid. J. II.
More. w. b Leeds Ogden Mills, George
Brewster, Arson r. Flower, Francis
L. Hine, George C. McMurtry and George
7. Boggs. This is the old board re-
elected with Mr.. Frick as an additional
member. William H. Moore is elected
chairman Of the finance or executive COM
mittee in which position it is said he
will practically suppiant Mr.. cable as
chairman of the board. Other members
of this committee are Messrs Field, Leeds
]. H. Moore and Hine.
The directors elected Mr.. Leeds presi-
dent of the new company with Mr.. Reid
as secretary and treasurer and MIR. Boggs
as assistant to Mr.. Reid. No statement
of any kind was issued regarding the
financiancing of the reorganized corpora
ton, but it was again declared that under
the terms of the exchange no consldera~
BILE cash outlay would be required.