The news-democrat. (Providence, R.I.) 1906-1909, 1908-01-08
RECEIVER FOR
CHICAGO c. v. RY.
DECIDED upon

London. Jan. s.--The expected meeting
OF the note holders OF the Chicago Great
Western Railway with A. B. stckney,
president OF the company, was held this
afternoon. II was decided TO appoint a
receiver for the company TO maintain
| the status quo during the time necessary
to prepare first mortgage bond, covering
all the indebtedness of the road and TO
obtain n vote OF the stockholders on this
measure. Many note holders were at the
meeting.
THE ROADS CONDITION.
New York, Jan. s.--The Great Western
has outstanding $4,000 In five per cert
gold notes which mature at various times
from 1905 TO 1911. 1t has slO6.os2,37s In
stocq, consisting OF S44, .545 in common
shares; s11 .33 500 In preferred A; t2S. lOA-
| s42 In preferred B md $2s127.0s9 in four
pei cent. debenture stock. There are bond
issues only on Its two subsidiaries. The
Wisconsin, Minnesota and Pacific rail-
road company has S5.796.0o0 first mortgage
four per cent. bond. outstanding, while
the Mason City and Fort Dodge Railroad
company has sl2.0oo.ooo four per cent. first
mortgage bonds
In discussing the financial condition OF
the Great Western. financier closely
identified with the property said yester-
day: THE future OF the read Is unques-
tionably In the hands OF the London f.
nance committee. which will decide its
fate. Mr.. Stickney has, for the last few
days. been detailing the roads position TO
them.
mo default has occurred on the Mason
city bonds. and the interests on them hav-
Ing been paid promptly last December
The interest was only recently deferred on
the four per cent. dcbentude stock, but the
company has leeway OF six months be-
fore the finance committe can assume
charge of the property under the terms OF
the debenture agreement.
The only difficulty at present confront
ing the company is In regard to the So =
900 FIVE year gold notes, which mature at
various times this year 1t was especially
regarding this matter OF refunding the
gold notes that caused Mr.. Stickney to go
abroad at this time to consult the finance
committee.
1t will be necessary for the Great West
ern to raise new funds TO meet these
notes. The T57 miles or the main line have
no bonded indebtedness. and IL was until
recently the plan of MIR. Sticknoy TO place
a mortgage upon this line In order to
raise necessary funds for extension and
to pay off the ss50oooo OF five per cent
gold notes. We are now expecting word
from Mr. Stickney regarding tho out
come o fhis conference with tho Eng-
lsh security holders"
The majority OF the roads securities are
held abroad. especially the debenture
stock issue and the preferred A and II
stocks, also the greater part OF the gold
notes The four per cent debenture stock
has voting rights at all meetings and Is
cumulative, with interest payable In gold
January and July. In tho event OF a de-
fault OF the interest payment for six
months the debenture stockholders may
step In and assume charge OF the prop
erty.
Holders OF the debenture stock and
preferred A stock appoint the London A.
nance committee. which consists OF How.
ard Gilliat. Sir Charles Tennant, Alexan.
der +. Wallace and Edwin Waterhouse
all OF London. The committee exercises
general supervision over the roads n
nances Additional securities OF the stock
issues may be put out. but only with con-
sent OF a majority OF both classes OF
stock present at a meeting.
The gold notes. however. are direct
obligation ahead OF the debenture stock
No lien can be placed on the property
without providing for their payment The
greater part OF the stocks and notes were
placed abroad by II. Benson & Co. Of
London
Tho Great Western, which IL the crea-
tlon OF Mr. Stickney. occupies a territory
In the Middle West. connecting Kansas
city. Omaha and ST. Paul with Chicago.
The road has not had a prosperous year.
and for the fiscal year ended June % ~
reported only small surplus over fixed
charges Earnings have fallen OF So
vereiy during the last few months while
expenses have increased heavily. The
entire system. known as the Maple Leaf
route aggregates 1895 miles.