The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-07-14
CHICAGO FRACTIONS PLAN
TERMS OF EXCHANGE OF SECURI-
TIES ANNOUNCED.

Receivers WIN soon 30 Discharged
Regulate Amount OF Securities "a
satisfy the City Ordinance Ratified by
Popular Vote Have Been Deposited.
The plan for the rehabilitation OF the
Chicago surface traction system. including
the financing Of the Chicago Railways Com
pany. which ID to DO the holding company,
and the terms Of the exchange Of securities
OF the underlying companies for its securi-
ties was published yesterday by ounsel for
the controlling interests with the approval
of Judge Grosscup.
Judge Grosscup signed a certificate on
Friday stating that the requisite amount Of
securities OF the subsidiary companies to
satisfy the terms OF the city ordinance
ratified by popular vote Last spring had been
deposited.
Judge Grosscup will fix a date In the near
future for the hearing Of any complaints OF
injustice Of the terms which may Do pre-
scented by holders OF the securities. but IL is
stated that he is very well satisfied with
the terms as outlined and any changes he
may be persuaded to make will be small.
After that has been definitely settled the
Judge will discharge the receivers In whose
hands tho roads nave been for the last two
years. That will, 1t In confidently expected,
be the last step toward the clearing up Of the
muddle which has distracted the whole
city. That the situation could be un-
ravelled so thoroughly in 90 short a time
ago. The city, the courts and the railway
are now practically in partnership in the
matter and equally Interested in it's success.
The plan comprises the issue OF five
classes Of securities. partly TO be used 10
raiaA YoOnn~ fnv ipnnrN uonn0nta md mn rflv
TO exchange for securities Of the companies
to be merged. and the formation of two
syndicates to supply the immediate cash
demand.
Chicago Railways Company are as follows:
1. A FIRST mortgage to secure an issue Of
twenty-five year 5 per cent. gold bonds out
of which to provide the funds required to en-
able the railways company from time to
time to comply with the requirements OF the
ordinance concerning rehabilitation, addi-
lions, &C. As the amounts which will be
needed for these purposes cannot be fixed
with exactness, the amount Is left without linn
%itation, except as to the purposes for which
such bonds may lawfully be authenticated
under the mortgage.
.. A consolidated or second mortgage to
secure an issue Of twenty year 4 per cent.
bonds aggregatlng $50 SOC. 900. OF which 49,
OO0, 900 shall be Of series A. having priority in
all respects over bonds OF series b.. and ti7.-
500. 900 shall be Of series r.
3. An issue OF twenty year 4 per cent. sink
ing fund income debentures OF IS. OoO.o 900.
4. An issue Of Ave year 9 per cent. collateral
notes redeemable at par on any interest date
three years or moro after date not to exceed
$500. 900.
S. An issue OF ten year S per cent. collateral
notes redeemable at par on any interest date
three years or more after date. interest pay
able only II earned after payment of all prior
bxed charges. not to exceed In tho aggregate
IS, O00, 900.
Q. The stockholders of the railways COM
pany will make the capital stock the subject
Of an issue Of income participation certificates
as follows: A-Serfes A, entitled to priority
Of annual income in the extent. IL earned. OF
per cent. or 81 per share OF the nominal value
of 800. and as to principal II any over series B
and c, amounting to si7. $50. 900. B--Series b
entitled, subject to the prior rights OF series A.
and in priority over series G. and to the extent
II earned, Of 8 per cent. or IS per share Of the
nominal value Of 800. and as to principal. IL
my, amounting to 90. 0Oo. 900. C-Series G.
subject to the prior rights Of series A and
series B. amounting to IS, ZOO. 900.
7. Said nrst mortgage and consolidated
mortgage and the bonds to be issued there
under and said debentures and collateral
notes shall be in such form az the committee
anu COuDSei WIN buo upptONdi u IA OOdlu
Of directors Of the railways p may
prescribe or consent to.
1t is proposed that the cash requirements
Of the situation shall be met and supplied
by means Of two syndicates. The first is
TO be Q rehabilitation syndicate to furnlsh
si2, OOO, 900 In cash. which sum shall be set
apart and solely applied to rehabilitation /.
&c. The second Is to DO an organization
syndicate which 10 to furnish about - .OO0, 900
in cash which 10 to be set apart and solely
applied to the following purposes For
paying or acquiring receivers certificates
a mounting TO $500 900. for other certificates
amounting to $3.50. 600. for paying or ac9uir-
ing car trust and equipment OBLIGATIONS
issued amounting to $4,000. for paying
or acquiring notes secured by real estate
mortgages and for cash to be paid into the
treasury Of the railways company on de-
mand Of les board Of directors. or OF the com
legal and other expenses and for other pur-
poses. amounting to S2,l4i ,OO0.
The ten year S per cent. collateral notes
are to be used In payment. Of the indebted
ness Of West Chicago Street Railroad, North
Chicago street Railroad Company and Chicago
Union Traction Company.