The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-12-09
BIG STREET RAILWAY DEAL.
Proposal for a Merger Made by the indianapolis
Terminal and Traction Company.

A street-railway deal. which has not been
unexpected since the franchise of the In
dianapolis Traction and Terminal Company
was granted. is announced.
Within forty-eight hours notices will be
sent to all the stockholders Of the In
dianapolis Street-railway Company. accom-
panied by a resolution adopted by the
board of directors of the indianapolis
Street-railway Company, of a proposal
from the Indianapolis Traction and Ter
minal Company to lease all the property
of the indianapolis Street-railway Com
papy. With these documents proxies re-
tutnable Dec. % will be sent out so that
the stockholders may vote to accept or
reject the proposal
One of the important conditions of the
proposal of the Indianapolis Traction and
Terminal Company is that it will commence
paying graduated dividend on the stock
of the indianapolis Street-railway Com
pany as soon as the lease is consummated.
and continue to do so during the period
of the contract of the Indianapolis Street
railway Company and the city, the lease
being for that period-thirty years from
Jan. l.
ANOTHER PROPOSAL.
The Traction and Terminal Company also
proposes to give. pro rata, to the stock
Company stock of the Terminal and Trac-
ton Company TO the amount of S1,5O0.O00
out of total capitalization of s5,OOO,OOO
The authorized bond issue of the Traction
and Terminal Company is limited to S.
OOO
The franchise of the Terminal and Trac-
tion Company provides that it may acquire
the property of the Indianapolis Street
railway Company.
The whole deal is tentative in its char
acter and must be ratified by the stock
holders. Under the street-railway act of
1899 it requires a majority of the stock
holders to authorize such a transaction.
The proposal will doubtless prove popular
with the stockholders of the Indianapolis
Street-railway Company because ii insures
dividend the stock. The stock,
amounting to s5OOO,OOO, has never paid a
dividend, and would not in all probability
pay one for at least a number of years,
although it has risen in the Stock Ex-
change of Philadelphia to 80 bid 1t has
shown late rise. due probably to the
|
The gross amount of stock and bonds in
volved in the deal will be s25.0OO00O. OF
this 81. 1000, 900 is stock of the Indianapolis
Street-railway Company and $40, 600 900 bonds
bearing per cent. interest. The capital
stock Of the Traction and Terminal Com
pany is now s5Oo,Ooo but the new deal con-
templates its increase to s5.OO0,000, which,
with the bond issue of $5000.00O. makes a
total of $25,O 900.
TERMINAL BUILDING SITE.
President MCGOWAN said last night that
the negotiations for a site for the terminal
station were being continued. The public
mind has been fixed on the Miller block
site, but Mr.. MCGOWAN said last night that
other sites were still under consideration.
One is near the Union Station and another
is nearer to Washington street 1t is un-
derstood that the company has been pa
tiently trying to acquire all the property
needed at the Miller block site, but indica-
tions point to the necessity for con-
demnation proceedings to acquire all that
| is needed if that site is selected. The COM
| pany is averse to resorting to this method,
and Is willing to pay generous price for
| all the property needed. but does not want
| to exceed what is the fair market value of
the land, because it is one of several avail
| able sites.
| AS the terminal station is to receive all
the business of the six interurban lines now
in operation, the two that are under con-
struction and one that is financed and will
| soon be constructed, and is to provide for
| the business for thirty ears, the selection
of a site not only requires the most i'm
| telligent foresight but the acquisition of
| an enormous area of land In the heart OF
/ the city The company regards it of the
utmost Importance to act prudently, and
believes that Ii can acquire the most avail
ceedings IL acquisition of pieces of prop
erty at a fair price is not possible. The
| companys plans call for complete pro-
| vision for the future, and had there not
been defeat in procuring property at what
the company regarded as a generous price
the work on the new terminal station would
/ already be under way.