The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-06-08
BOND ISSUE NEXT.
S,tIsE BEHENTCRss AND
sgovJDE FOH THg FtTtRE

ptselcnlly decifed upon y
, financing comprehensive enough
Hf ali tba demabda N Tho road In the
"a.,u,is future and for yeats w CONS
~" ,i,o fs similar io that adopted NOV long
wv ~, uo southern Hallway Company,
n1 ",.I.,,ria bond iss,ie ~ t7on 0Un. no
VI ly , general mortgage on an the
=" A.. l,,Is in in Used fof tho retire
W., ", .~..,-nnrda and for improvements
VI .,,...rrs from time 10 tifur'
"a. VIs.b Iss,ie will not 10 sn largs'
- .u'lo No large " the relative resources
n. ,,, s,siora afe considered.
W. ,g,,.,spd that the iae,le will he ~
49,, ,Tn Ouo o0o. snil n prominent hanher
,,srdsy and Perhaps much more l
-, mink b, will 30 larger, for In my opin-
FL r..ro than thnt can be ,ard 10 good
l..a,.ss in cona' ructlon Of llnee con-
-, Tho various parts ~ the Gould syH-
W., 1, ,bn T,st and bringing TO final rom
a..on tho rlans for a transcontlnental
rr,,or which up 70 this time George Gould
~. ,.,nrousIy and successfully adj
nncei =.
rr cent and will mature In fifty years
nav will 10 secured by deposit of stocks
49, h.,d. Of s~uleidiafy companies by a
s,ro,,Im mortgage on all the lines and by re-
t-,c,,,rs which will forbid the issue Of
,r ~ -Ia l.rd- except for a specific tise.
n e. 10000 Cur instance, Ia needed 10 COM
.a, tho IaI,rtown and Wheeling Short
4 r,.a ne # tho unCompleted links in the
,r.tsro an amount Of tho bonds sufficient to
.,ya- The eJ, rrse- Of the line will be issued
md the i--te will he occurred or the new
ha. Tie zane idea applies to other future
4 trer .os for improvements and extensions.
OF the Issue s2l ,O0O, 900 will be used for
ma retirement OF the Wabash dehentures,
srss A AMI series B. There have been
nnors for several weeks that the settle
rant If the long standing controversy
batTeen holders of tie bonds and the nan
,r.nent wa- near at hand and it is finally
considered certain that such Us the case.
though no agreement has been signed by
the ho1dbolders' committee or the Wabash
management, n number Of bankers and
Wabash officials unite in declaring that
there seems no possibility Of the plan fall
ing through.
The A debentures, OF which there are
rDOOOO. will be called at par in accordance
WITH the provisions of the indenture which
allows their retirement at par on -four weeks
t0tice.
The B debentures, Of which there are
] 1880, 900 outstanding, will be retired on
,basis Of 10 per cent in the new 4 per cen
bonds, 50 per cent. in preferred stock and
a $1,000, in nnpopnn ctnnl A EvDHspntA
consisting Of Blair d Co. and William A.
Read L Co. will underwrite the new securi-
ties and will offer to debenture holders
y per cent. Of their holdings in cash in case
they prefer a cash payment to securities.
4 don't think the syndicate will be called
4 upon to pay much cash. said a we'll known
banker. The new securities look better to
ne. The new 4 per cent. bonds should GER
ainly be worth 80, and Perhaps SIS. But
issuming that they are salable at but 90,
he holder OF every 81 900 B debenture would
i ret a new bond he could sell for $500. His
would net him sos n his allotment OF
referred $3.50, or a total Of sel5 for every
/ ~dbenture B bond. / think that the new
I per cent. bonds will sell better than so
and that those who take the securities in
exchange will realize anywhere from 9s to
rar for their debenture B holdings
Members Of the B ~debenture committee
IRE well satisfied with the arrangement.
Though interest was paid on the A deten-
lures at 8 per rent. from 1900 to 1908. there
has not been a solitary interest Payment
Oh the Be. Nevertheless a fair price has
been maintained for the debentures for the
reason that they were the first hen on the
arnings after the payment OF the interest
% the first and second mortgage bonds,
And II hrg laap l-@u-n frr g4rNa tiron that |
TIE road was earning 9 per cent. over and
bove these payments and was putting
ae earnings into improvements rather than
9ythe G per cent interest on the debentures.
The debentures were secured by a second
n6rtgage on the lines west Of the Mississippi
RIVER and a third mortgage on the lines
hSt OF the river.
Z Henry Evans, George NJ. Cummings and
henry K, Pomroy was formed to protect
he interests Of the B holders. Up to a month
40 the committee represented holders Of
tonds aggregating about SO, zoo, 900, but it
: understood that now the committee has
bonds TO the amount Of at least $1,000, 600.
.he bonds carry a voting privilege for every
,D OF principal, and 1t was shown at a
sockho!ders' meeting not long ago that
le GouIds we're very large holders Of the
securities. Since that time it is believed
le Gould holdings have largely increased, |
mo i is said also that a large number Of
ne deo7ntures are in the Wabash treasury.
ms fact makes il all the more certain
ia, the plan will be adopted, for there can
N out few b~ondholders to object and it is
much 10 the financial interests of all the
s11gest holders that the plan go through.
Inc Wabash will not need to make a new
sue OF common stock to carry out the
pah, Tor It has in its treasury S4S, COO, 600
q common stock, but there will be ~necessi-
steo a new issue of the preferred to the
mount Of SIS. 1000. After the formal
uuoeptance of the plan by the holders Of
se aeoentures the plan must be approved
" the directors and a special stockholders
sIeelne called to secure their approval. |
Iasnuch as the control Of the road Is so
scule,,y in the hands Of George Gould-a
NJ which he demonstrated in his struggle
t"h former President Ramsay-there can
no failure Of the plan on this account.
PAR d Co. and William A. Read & Co.
~. uhaerwr.te the common and preferred
sock necessary for the retirement of the
sanas and that part of the new bond issue
nn%sesafy Tor that purpose, but no ar
easements have yet been made with
G y looking TO the underwriting Of
NJ ~ 9ther new bonds. The authority
~ tnese other bonds will, however, be
vSS;uhIea az the same sto ckholders' meeting
ds 1Sn Will approve the retirement of the
lSSeentures, George j. Gould sails for
ii..,Vle on Tuesday, but he has announced
,sso ne mas conferred authority on his
o 4aIes IN the Wabash management to
~ out the plan.
retirement Of the d~ebentures. bankers
bS.i,tiu, VIII put the Wabash in q stronger
NsANigUt fnNnINnn raN -, 49, =