The indicator., 1904-09-03
TERMS OF PEACE.
Agreement Said to Have Been Reach
ed in Reorganization Plans of
the c. F. & /. Co.

Headquarters of the Colorado Fuel
& Iron company have given out an
outline of their plans for the future
which look good and are as follows
They include funding plan and
agreement which has been declared
operative by the debcnturc bondhold-
ers' committee, of which ]. A. Blair
of New York is chairman. By the
terms OF this plan Gould and Rookie
feller are to be paid $I2,ooI 200 in
cash, which they advanced to the
company in July and November, 1908,
at the time they secured control of
the corporation.
By these terms it is also shown that
E. V. Gary, an official of the Standard
Oil company and a partner of Rocke-
feller, holds as security for the loan
advanced by Rockefeller and Gould
valuable earning properties of the
company valued at nearly $I3,ooo,ooo.
Exactly what these properties were
that were given as security for mon
ev advanced is not known, but it is
thought that the plant at Pueblo was
among the property so pledged.
These properties, it is intended,
shall be returned to the company SO
that the stockholders may get some
benefit from their earnings.
In brief, the reorganization plan is
said to be as follows:
John d. Rockefeller and George
Gould, principals in the combination
now in control, will receive $12,ooI,-
200 cash, advanced in July and No
vember, 1908. The bonded indebted
ness will be increased to $4s,ooo,ooo.
Changes in the original plan are neces-
sary through refusal of holders of
$I,7Io,ooo of the debenture bonds.
/ he dissenting bonds will remain pri-
ority. The valuable earning proper
ties placed since November, 1908, with
.-dward V. Cary of the Standard Oil
company as pawns for repayment of
the Rockefeller Gould advance, will
be returned to the company.
The Colorado Fuel & Iron COM
pany's bonded debt will be increased
to $4s,ooo,ooo and its common stock
by $6,2oo,ooo. The apportionment of
the bonds and stocks of the new issue
will be:
Bonds. Stocks.
Holders of as
senting out
standing de-
bentures :. ..$I4, 4,ooo, 900 So, 5000, 600
New bonds and
stock for re-
pure h Sc of
property and
new capital =. 100000 100000
Retirement of
first mortgage. 100000 .........
Lal. in treas.
available for
add. capital :. 100000 .........
|
Totals :. ......... .$45, 900 st, 200, 600
The Rockefeller-Gould combination
will receive $1,000 600 bonds and $3,-
100000 new stock set apart for repur-
chase of properties and for additional
capital, $I6,23o,o 600 bonds and $324,8oc
stock. This leaves $76I 900 bonds and
$Is2, 400 stock available for new cap
ital. This division is based upon the
assumption that the combination will
take over the bonds and stocks set
aside for the redemption of the prop
critics without waiting for them to be
converted into cash.
OF bonds held in the treasury foi
additional capital 100000, it is un.
derstood, will not be marketed fol
two years; $3I 900 of bonds will
be issued Immediately, and will be
used to place the company on it.
feet.
There are two alternative plans fol
the reorganization of the company
The first is that Edward " Cary o.
the Standard Oil company convey tn,
properties purchased by him from
Rockefeller and Gou,d to the fue
company or to company to be or
ganized under direction of the com
mittee which may acquire the proper
ties purchased by him to a corpora
ton to be organized. The stock o
this corporation will then be trans
ferred to the fuel company, whicl
will guarantee the principal and in
terest of the bonds.