The Birmingham age-herald., 1902-08-01
ROCK ISLAND
 PLANS ARE OUT Formal Announcement of CQn- sOIidatiOR Made byPrssidsnt MANY MILLIONS CAPITAL
Bonds to Extent of s75,ooo,ooo and Stock Amounting to $125, ,ooo, ,ooo Will Be Issued-officers Are
 EIected-Leeds President.

New York, July S1.-FormaI announce ment of the reorganization of the Chi- cago, Rock Island and Pacific Railway company was made today in a circular letter which was sent to all stockhold- CTS of record. With fer exceptions the main details have already been publish ed. The circular says in part:
 Chicago, Rock Island and Pacific Railroad company of Iowa hereby offers to purchase all the outstanding stocks of the Chicago, Rock Island and Pacific Railway company, certificates for which shall on or before the first day of Sep tember, 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 s10O, so deposited. to deliver $100 in its 4 per cent gold bonds of 2OO2, $70 in the preferred stock of the Rock Island company (of New Jersey), and $100 in the common stock of the Rock Island company tof 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 Chicago, Rock Island and Pacific Rail- way company. Its authorized securities are: s125.O0O.oOO stock, $75.0Oo,OOO per cent gold bonds. known as Chicago. Rock Island and Pacific Railroad company { per cent gold bonds of POOP.
 Secured by Stock.
 
 limited to the aggregate face value of $75, 600. 000 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 1, POOP. to bear interest at the rate of per 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 a corpora tion organized under the laws of the state of New Jersey. It has no mortgage in- debtedness. Its authorized capital stock is $15O, 100000 in two classes, $54, 900 of non-cumulative preferred stock and $96- GOO 900 of common stock.
 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 1918, and at the rate of per cent per annum there after. The preferred stock is also pre- ferred as to capital. Holders of the stock are entitled to elect majority of the directors, but such privilege may be sur rendered with the consent of the holders of two-thirds in amount of the preferred stock
 The Rock Island company has entered into agreements with the Chicago, Rock Island and Pacific Railroad company (of Iowa) under which, in consideration of deliveries of its preferred and common stock for the purpose of the foregoing offer, the Rock Island company will be- come the owner, as issued, of the capi- tai stock of the Iowa company.
 Officers Elected.
 Accompanying the circular and under date of Chicago, July 31, is a resolution adopted by the board of directors recom- mending the acceptance of the reorgani- zation plan.
 The new company has been organized with this list of directors: R. R. Cable. Marshall Field. H. c. Prick, William H. Moore, D. G. Reid, J. H. Moore, W. B. Leeds, Ogden Mills, George s. Brewster, Anson R. Flower Francis l.. Hine, George c. McMurtry and George T. Boggs. This Is the old board reelected with MT. Prick as an additional member. William H. Moore Is elected chairman of the finance or executive committee, in which position it is said he will prac- tically supplant MT. Cable as chairman of the board. Other members of this committee are Messrs. Field, Leeds, Reid, J. H. Moore and Hine.
 The directors elected MT. Leeds presi- dent of the new company, with MT. Reid as secretary and treasurer, and MT. Boggs as assistant to MT Reid.
 No statement of any kind was issued regarding the financing of the reorgan- ized corporation, but it was again de- clared that under the terms of the ex- change no considerable cash outlay