Richmond daily palladium. [volume] (Richmond, Ind.) 1876-1904, 1904-01-12
ALL FACTIONS ARE UNITED
AND ALL ARE PULLING
TOGETHER
TO BETTER THE SYSTEM
Loree is in Full Commando Large
Bond Issue to Meet Obligations

New York, Jan. 9.-The three
large interests represented in the
Rock Island and which hitherto have
not been in full accord regarding pol
icy of management, have been har-
monized completely in a comprehen-
sive plan Of reorganization and re-
financing. The three interests which
are now pulling together with view
Of making the 18,000-mile railroad
system the greatest and best in the
West are represented by the Moore
Brothers, W. B. Leeds, B. f. Yoa-
kun, president Of the Frisco, and X,
r. Gable, who until recently was
chairman of executive committee of
the Rock Island The coming bond
issue which will be authorized to the
amount of $15O,0O0,0OO, meets the
approval of all the men named, as
does the scheme for reorganization
which President L. T. Loree is ex-
pected to carry out.
The main details Of the bond issue
were learned today although it has
not not been settled definitely what
kind of bonds will be issued. OF the
entire amount, $6O,OO0,00O will be
devoted to retiring the bonds of the
Rock Isand system, proper, as they
come due for the next twenty-five
years All the immediate issue that
viii be necessary vii be to take care
Of the bonds which will fall due
within the next two or rthee years,
and which aggregate between $1O,-
O0O,OO and $112,OO0,OOO 1t is un-
derstood that these bonds already
have been contracted for by Speyer
& Co.
The Chicago, Rock Island and Pa
cifc Railway Company has during
the past decade advanced $45, 100000
cash for construction purposes and
for the acquisition Of new equipment.
There are 900 miles of road belonging
to the company against which there
IS no mortgage. The company is to
be reimbursed for these advances by
a bond issue for the amount stated.
In this issue the stockholders will, as
a matter of course, have valuable
rights and the bonds will not be put
on the market
The railroads interested in the
plan thus far outlined are only those
comprised in the Rock Island Sys-
TEN and represented by the Rock Is
land Company of New Jersey as a
holding company. These roads are:
Chicago, Rock Island and Pacific
Railway, Choctaw, Oklahoma and
Gulf, Chicago, Rock Island and Tex
as, Chicago, Rock Island and Mexico,
Chicago, Rock Island and FL Paso.
and the ChoetaH, Oklahoma and
Texas Railroad.
The Frisco system also is repre-
sented In the refining scheme to the
extent of $4,000, ,000. This amount
represents o Rock Island bond issue
which was made In connection with
the purchase of Frisco stock and
which is held rs collateral security
for tie issae These bonds ten
year 5 per cent bonds, and to be
retired moon coming due Tie total
amounting to 1926, 100000 repre-
sents about all the main items which
have been provided for ia the agree
ment
The remainder of>the authorized
issue. which under the present plan
will be $150,000,000, viii BE held in
the treasury as a sinking fund,
against which the Rock Island system
may draw for at least thirty wears to
come or during the entire time in
which the bonds to be refunded are
coming due and are being retired.
This sinking fund, amounting to an
authorized issue Of S25, ,00O. 900. will
be subject to actual Issue to provide
for improvements and additions to
the property and for the acquisition
of new railroads when desired.
The reorganization scheme which is
planned in connection with the bond