Omaha daily bee., 1902-08-01
REORGANIZE ROCK ISLAND
Offers to Purchase All Outstanding Stock
Of the Old Company.
COMMON AND PREFERRED STOCK ISSUES
Bonds Under the REORGANIZATION Are
TO Mature in a Hundred Years,
Bearing Interest at the Rate
of Four Per Cent.


W YORK. July 31.-Formal announce
ni.-lt Of the reorganization of the Chicago,
Rock Island Pacific Railroad company
was made today in a circular letter which
was sent to all stockholders OF record. With
few exceptions the main details have al
ready been published, The circular says in
part:
Chicago, Rock Island q Pacific Railroad
company, (of Iowa) hereby offers to pur-
chase all the outstanding stock OF the Chi
cago, Rock Island Pacific Railway COM
pany, 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
| railway company, Of the par value of
500, 80 deposited to deliver 500 in its four
per cent gold bonds of 2002; $40 in the
preferred stock of the Rock Island COM
pany (of New Jersey, and 800 in the
common stock OF the Rock Island company
| (of New Jersey.
Chicago. Rock Island Pacific Railroad
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 Chicago. Rock Is
/
/ thorized securities are:
$125 100000 stock, s75,0Oo,OOo four per
cent gold bonds. known as Chicago. Rock
Island & Pacific Railroad company 4 per
cent gold bonds Of 2002.
The per cent gold bonds OF 2002 are
limited to the aggregate face value Of $75,-
900, 900 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 & 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 agreement.
The bonds are to mature November 1,
2O02. to bear interest at the rate of per
cent from November 1, 1902, payable semi
annually on the first days of May and No
vember, both principal and interest to be
payable In the city Of New York, free of
tax. The bonds are coupon bonds for $1,000
each with the privilege OF registration as
to principal and registered bonds in the
denomination Of 5000. or multiples there
Of. The coupon bonds and registered bonds
are interchangeable.
The Rock Island company is a corpora
tion organized under the laws of the state
of New Jersey. 1t has no mortgage in
debtedness. Its authorized capital stock
is $3.50 900 in two classes; $54. .000, 900 of
on-cumulative preferred stock and $685.
600, 900 OF common stock.
4 Issue of Freferred stock.
The preferred stock is entitled TO non
cumulative yearly dividends at the rate Of
per cent for the year 1902 and for each
and every year thereafter until and in
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
6 per cent per annum thereafter.
The preferred stock is also preferred as
to capital. Holders Of the stock are en-
titled to elect majority OF the directors,
but such privilege may be surrendered with
the consent of the holders Of two-thirds
in amount Of the preferred stock. The
amount Of preferred stock cannot be in
creased save With the consent of two
thirds of each class Of stock.
The Rock Island company has entered
into agreements with the Chicago, Rock
Island & Pacific Railroad company (of
Iowa), under which, in consideration Of
, deliveries of it's preferred and common
. stock for the purpose of the foregoing
! offer. the Rock Island company will be-
1. | COtuc tuc OWncIes as lsbutu OI Ine Capital
! stock Of the Iowa company.
Accordingly, upon the acceptance of such
, /, offer by all stockholders Of the present
company the Iowa company will have ac-
!, quired the entire capital stock of the pres
ent company, while the entire capital stock
OF the Iowa company will, in turn, be held
by the Rock Island company, so that
, through the stocks OF the Rock Island
: company to be delivered in pursuance of
this offer of purchase, the proportionate
= interest Of stockholders OF the present Chi
cago, Rock Island & Pacific Railway com
pany in the railroad properties and in their
future earnings is preserved.
The capital stock of the Rock Island
company not required for the purpose OF
this offer is reserved for future issue for
: the acquisition Of additional properties and
: other corporate purposes.
Accompanying the circular, and under
date OF Chicago. July 81, is a resolution
adopted by the board of directors recon-
mending the acceptance of the reorganiza-
tion plan.
The new company has organized with this
- list of directors: r. r. Cable, Marshall
!. Field, H. c. Frick, William H. Moore D.
! G. Reid, ]. H. Moore, w. B. Leeds, Ogden
:, Mills, George s. Brewster, Anson r. Flower
!, Francis L. Hine, George @. McMurtry and
) George T. Boggs. This is the old board, re-
n elected. with Mr. Frick as an additional
member
= william H. Moore Is made chairman OF
n the finance or executive committee. in
= which position IL is said he will practically
\ supplant Mr.. Cable as chairman Of the
a board. other members OF this committee
u are: Messrs. Field. Leeds, Reid. ]. H
,s Moore and Hine
! The directors elected Mr. Leeds presi-
n dent Of the new company. with Mr.. Reid
= as secretary and treasurer and Mr.. Boggl
J. as assistant to Mr.. Reid.
/ No statement OF any kind was issued re
garding the financing OF the reorganizeC
corporation, but II was again declared
& that under the terms of exchange no con
= siderable cash outlay would be required.
\ Trading in Rock Island shares was verl
light today, total operations aggregatinl
only 800 shares, at net loss OF 2h points