New-York tribune., 1906-06-08
HUNDRED MILLION PLAN
TO RETIRE DEBENTURES.
Wabash to Erecute Blanket Mort
gage-On Way to Seaboard.

The directors OF the Wabash Railroad Company.
Il was learned yesterday from authoritative
sources WILL at their meeting toward the end OF
this MONTH when action is to be taken for re-
firing the debenture b. bonds recommend the
execution of blanket mortgage for about 100000
CO., covering the entire road. and special meeting
of the stockholders will soon thereafter be called
to ratify the proposition, we'll as TO approve the
issue of stock for carrying out the debenture
"B retirement plan OF the s1o0.Ooo0o0 per cent
bonds. 10 be secured by this consolidated mort
gage. For retiring the debenture "B bonds sS.-
1900 will be required, and certain amount VIII
be reserved for retiring the debeEture AS ana
other obligations OF the company: the remaining
part of the issue being reserved. under restric-
tons, to be disposed of from time 10 time to meet
the cost OF new construction and betterments-
A syndicate. among the members of which are
William A. Read & Co. and Blair & Co, has been
organized TO underwrite the new securities whlch
the Wabash will issue in exchange for the de-
benture "B's"
AS already published. the terms OF the agree
ment recently reached between the debenture b
bondholders' committee and the Wabash Railroad
Company for the retirement of the issue provide
for the taking up of the s2S5OOOtO outstanding de-
benture BIS a basis OF 20 per cent In new
consolidated mortgage bond. 80 per cent In wabash
preferred stock and 30 per cent in common stock
The bondhOlders will also have the option of ac-
ceptng 80 per cash in lieu of the new securities
If they desire. $500 for each $1,000 bond. This
option is based the underwriting price, the syn
dicate agreeing to pay $500 for the new bonds and
stock which each holder of one debenture B
bond will be entitled.
The plan is understood to include also the re-
trement of the debenture "a bonds. of which
$3500,0O0 outstanding This issue. 1t Is under
stood. will be called at par in accordance with the
provision of the indenture. which allows the "A
bonds to be retired at par four weeks notice
To carry the provisions of the retirement plan
issue of $1,000 preferred stock Will pc
necessary. making the total stock OF this class
S37 25001O The authorized common stock is S'sOO,-
O11. of which S3S.000O00 is now outstanding Wnlch
amount will be increased to ISL $4,000
1t Is understood that considerably more than a
majority of the debenture bonds is in the
hands of interests favorable TO the plan How
large a percentage of the total issue must be de-
posted before the plan is declared operative could
in well informed quarters that the underwritcrS
would be called upon to take little II any part OF
the securities IL was figured that the total
value of these securities was around 81 or SS, ana
that when the transaction was completed the de
bentUre b. holders would have received almost
par for their bonds.
Special dispatches received in Wall Street yes
terday from Pittsburg brought the news that work
had already been begun on the projected line, de-
scrbed in The Tribune few days ago, between
Wheeling. W. Va. the eastern terminus OF the
terminus of the Western Maryland Railroad,
Gould property. This link, the cost of which may
be met out of the proceeds Of part of the new
500, 900 900 Wabash bonds. will. when completed,
give the Wabash a through line to the Atlantic
seabOard at Baltimore.