The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1907-04-25
Kenosha Electric R'y Co. Places
a Million Dollar Blanket on
Property in Kenosha
Cash FOR EXTENSIONS READY
Western Trust and Savings Bank and
Willoughby G. Wa11ig of Chicago,
to Take the Bond Issue of the
Electric Railway Company

The Kenosha Electric Railway COM
pany by it's president and secretary
has issued a trust deed to the West
ern Trust and Savings Bank and to
Willoughby G. Wallig, of Chicago,
to cover a bond issue of $1,000, 900.
The mortgage, which is one of the
largest ever fled in the county, was
placed on record with the register Of
deeds this morning. It is understood
that the company will Immediately
issue bonds to the amount Of $500, 900
and that the remaining loan provided
for IN the big mortgage will be re-
ceived as it is needed for the extern
sion or Improvement of the property
of the company.
The mortgage covers many pages
of printed matter and it is most ex-
plicit in its terms. The purpose of
the loan is stated as follows: ''For
the purpose of funding and paying
the outstanding indebtedness of the
company and all existing obligations
and for enlargement, improvement,
extension or betterment Of it's railway
system, and for additional equipment,
lands, easements or other railway
properties that the company may
hereinafter construct or acquire by
purchase or otherwise and for a part
of its permanent and fixed invest.
ment."
It is stated that the bouds to be is
sued are to be 1000 in number, and
are of a denomination of $1,000. They
are to be payable in twenty years,
and are to bear interest at the rate of
5 per cent per annum. The property
conveyed is all the property both real
and personal, including all franchise
rights and all property that may be
acquired by the company during the
life of the trust deed. The present
managers of the company are to re-
tain possession of the property and
are to operate it, giving to the trus-
tees an annual report of the business
done.
The trustees are to receive $500, 900
in bonds at once and the remainder of
the bonds are to be issued as the de-
mands of the company may require.
tor enlargement and extension. The
deed provides that in case the COM
pany shall fail to pay the interest on
the bonds the trustees will have the
right to take possession of the proper
ty covered by the mortgage and oper-
ate it for the benefit of the owners of
the bonds, but as soon as the arrears
are paid the property must be turned
back to the company for operation.
1t is stipulated that the mortgage is
to be lien only on the property
owned by the corporation and the
personal stock holders and directors
assume no liabilities under the mort
gage.
The bonds will bear the date of
April /, 1907, but they are not to be
deemed as issued until delivered to
the purchasers.
The filing of the mortgage will
give the people of Kenosha some idea
of the great value ofathe railway. 1t
was purchased by Mr.. Frost a few
years ago for $35O,OCO and at that
time it was thought he was paying an
enormous price for it. The trust deed
shows that the line is worth a large
amount more. Of course much money
will be expended in the extension Of
the line but the amount to be expended
will probably not be in excess of $780,
600. The bonds held in escrow will
be utilized by the company for future
extensions.