The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-08-01
ROCK ISLANDS PLAN.
Details Of the Proposed ReOr-
ganizatiOn Scheme.

New York, Aug. Formal announce
ment of the reorganization of the chi
cago, Rock Island & Pacific company
has been made in circular letter which
was sent to all stockholders of record.
With a few exceptions the main details
have already been published. The cir
cular says in part:
1.-The Chicago, Rock Island & Pacific
Railroad company of Iowa, hereby of
fers to purchase all the outstanding
stock of the Chicago, Rock Island and
Pacific Railway 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
of the par value of $780, SO deposited, to
deliver 800 in its four per cent gold
bonds of POOP; $40 in the preferred
stock of the Rock Island company of
stock of the Rock Island company of
New Jersey.
THE Chicago. Rock Island & Pacific
Railroad company is a railroad corpora
state of Iowa, with power to acquire the
lines of railroad and the capital stock
of the Chicago, Rock Island & Pacific
Railroad company. Its authorized Sc
curitieS are:
.s125. 900, 900 stock: s75.OOO, 900 four per
cent gold bonds known Chicago,
Rock Island & Pacific Railroad COM
pany, four per cent gold bonds of POOP.
--Ine TOUR per cent gOlQ DOnOS OF zUU1
are limited to the aggregate face value
of $4,000 900 and are to be secured I'M
der 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 Is
land & Pacific company which may be
acquired under this offer or purchase or
otherwise and can be issued only to
face amount equal to the par value of
the stock pledged under the trust agree
ment.
1.-THE bonds are to mature November
/, 2002, to bear interest at the rate of
four per cent from November 1, 1902,
payable semi annually on the first days
of May and November, 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 prin-
cipal and registered bonds in the de-
nomination of $4,000. or multiples there
of. The coupon bonds and registered
bonds are interchangeable.
The Rock Island company is a COR
poraticn organized under the laws of
the state of New Jersey. 1t has no
mortgage indebtedness. Its authorized
capital stock is s50,OOO,O0O in two
classes 1854 600 900 of non cumulative
preferred stock and 500, O0O, 900 of COM
mon stock.
1.-THE preferred stock is entitled to
non cumulative yearly dividend at the
rate of four per cent for the year 1907
including the year 1909, at the rate OF
five per cent per annun for the year
1910 and for each and every year there
after until and including the year 1916
and at the rate of six per cent per annum
| thereafter. The preferred stock is also
| preferred as to capital. Holders of the
stock are entitled to elect a majority
of the directors, but such privilege may
be surrendered at the consent of the
| holders of two-thirds in amount of the
preferred stock The amount of pre-
ferred stock can not be Increased save
| with the consent of two thirds of each
class of each stock.
THE Rock Island company has en-
| tered into agreements with the Chicago
Rock Island & Pacific railroad com
| pany. of Iowa, under which. in consid-
| Grafton of deliveries of it's preferred and
| common stock for the purpose of the
foregoing offer, the Rock Island company
VIII become the owners, as issued of
| the 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 acquired the entire capital
! stock of the present company, while the
| entire capital stock of the Iowa con-
| pany 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 Chicago,
| Rock Island & Pacific railway company.
in the railroad properties and in their
future earnings is preserved"
Accompanying the circular. and under
| date of Chicago July 81, is a resolution
adopted by the board of directors rec
| ommending the acceptance of the reor-
| ganization plan. The new company has
| organized with this list of directors:
| r. R. Gable, Marshall Field, H c.
| Prick. William H. Moore. D. G. Reid.