New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-01-15
BIG BOND ISSUE OF R. |.
TO PUT OUT s16S,OOO,O00.
Treasury To BE Reimbursed for
Expenditures.

The plan OF the Chicago. Rock Island and Pa
cihc Railway Company. announced last july iof
the creation of a s250,000O bond ISSUE was aDah-
doned a few weeks ago. al which time 1t was saio
on authority that bonds Of any KIND would
be sold within period Of many months ana
probably Of than a year Yesterday olnclll
announcement was made Of a meeting Of stock
holders 10 be held on March q. for the purpose or
acting on a proposition for the creation Of an IL
debtedness Of Sl6S.001O0 bonds, OF which it is
planned issue S15.05)0OO at the outset president
Leeds in his circular 10 the stockholders. says:
Since the Issue of a cali for a meeting OF stock
holders for october g. 1903 (since adjourned with
out action. your board has given careful con- con-
slderauoil 70 ana colleIIed VIII 60
friends OF the company concerning, the character
stances il would desirable, In the interests OF
the stockholders TO issue for the purpose OF re-
protecting the strong position of the company ana
The conclusion which we have reached is that. in
lieu Of the adoption OF the plan formerly proposSu,
OF eighty-fve years it is preferable now restrict
the refunding operations 10 the requirements Tor
II has also been thought advisable 10 limit the
which should make the new bonds available for
Investment under the New-fork savings oahA
The immediate purpose in providing FOR r.. a bono
issue now is the Iara! reinoTseIent OF tie made
There has been disbursed between January l. lsOl'
and October 81, 1903:
For acquisition Of lines shops and $40 4aa COG ?.
For retiring bonds and equipment notes.. 2O1ScoO 90
1908, 70 complete work under construc- c.,.,s-.
ton ''eN'7o -
Total l5S'994 "
The company has no floating debt. The follow
ing statement shows The current assets ana ha a.
buires Of october 81. 1905 QncIqdlng those OF
the Choctaw, Oklahoma ana Gun ttalIIcSG S T
pany and the Chicago. Rock Island ana III Faso
cent diTectorsf shares is owned by your company.
The current assets and liabilities OF me Bnrg on;
the Rock Island and Peoria Railway company
were merged With those OF your company on IN fs my
Assets-cash. S. 6S414s IS: other current assets
ana accounts, sos l7S o.; material and supplies
s47s1t Ga IS; total: SS4G4 SIS ~ ,.o,. a,a +oxos
and unpaid vouchers payrolls and accounts as OF
s6 G6s@ no non ex6ende from income IN Better
ments and improvements prior 10 1850. 81 22 sil:
current liabilities 100 49, ada securities in
Total tID: Sill 2- s55 O$ s. ''-''''' ''' -
The general features OF the proposed bond issue
are as follows Total issue not 20 exceed s1eSOOo-
600: date of maturity April l. 1894. subject 10 re-
dempdon prior to April J. 1911; rate OF interest not
exceed per cent per annun; no bonds under
existing mortgages to be extended during the
life Of the new bonds; the company will make no
additional mortgage upon property covered by the
new mortgage during the life OF the new bonds.
OF the new bonds. Sl5.OOo0O0 are to be issued
forthwith For retiring taking up acquiring. at
before maturity. certain issues there are to be
reserved $S2025.oo OF the new bonds some OF these
ample. among the items for retiring WHICH ne
00o Chicago, Rock Island and Pacific Hallway CON-
pany general mortgage As. hereafter 10 be issued
for retiring maturity Sl2.5De1 Chicago ROCK
Island and Pacific Railroad Company first mort
gage 5s of 1877" and "S559O.o|l Choctaw, Okla
homa and Gulf Railroad Company consolidated
6s. hereafter to be issued for retiring SS.5Oo0O
Choctaw, Oklahoma and Gulf Railroad Company
general mortgage IS of 1919 ~.
New bonds TO the amount OF S3-5OO,OO are re
served be issued TO provide funds TO the amount
of other companies whbch may hereafter be
Quired by the railway company, and which are 10
be pledged S further security for the new issue;
S7 $500 reserved to be issued mot to exceed in
the aggregate s2.Jlo0e0 year from January l. 1904,
cumulative to the amount, at the market value
then The bonds issued. of the cash cost OF
future improvements betternents, including
equipment, 10 the properties covered by the new
mortgage
panv shall furnish the trustee certificates. stat
Ing that II has. subsequent 10 January l, 1904 eX-
pended amount of cash equal 10 the market
value then Of the new BINDS issued for the
may lawfully acquire, IN permanent improve
ment betterments, including equipment, on the
railroads subject 10 the mortgage.
1t is proposed 70 make the new mortgage a first
lien either directly through pledge Of the entire
issues of bonds OF the companies owning the seme)
on the following unmortgaged and unpledged
property: Terminal property at st. Paul, Mime
apOlis and St. Louis. costing about SO3O,000; new
equipment costing about 81. S34 coo; new shops at
Moline costing about 81 200 901 railway lines. ag
gregating 62959 miles, and all first mortgage bonds
on lines aggregating 51sSS miles.
II IS proposed make the new mortgage a. Junior
lien (subject TO existing mortGages) on all other
railways OF the Rock Island system. aggregating
exclusive OF SCI - miles OF leased lines and track
age. 5eS9.9s miles,