New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-05-29
GOULD ROAD DOOMED
,SO BANKERS UNDERSTAND
Wabash Pittsburg to Default Bond
Interest, They Sau.

-,,s.ul. will be made in the payment Of the
--,sunual interest cue Monday on the out
--,5,us sea5oo.eo per cent first mortgage bonds
:. RE wabash Pittsburg Terminal Railway Com
- srd application viii be made for receivers
f-.s,s to-day. II is understood by well Informed
ss.-r4nr interests. although no announcement Of
rx SORT has come from the management Meet
.-rs were held yesterday by the directors OF the
-shs.h Railroad Company, which owns the en-
.,-. CAPITAL stock Of the Wahash-Ff ttsburg Ter
,,e, Railway Company. and by the directors NJ
a. latter company, but II was seid after those
,-se-ences that no statement would be given out
rntn to-day
-pe-e is reason for believing that the statement
..s.,e-shir thu announcement Of tire formation
strong protective committed which will fraros
-i-r of reorganization for the property Among
re urohshle members OFT this connrlitte are said
- ~ lanes X. Wallace. president OF the Central
--,st Company: Haley Ffske vioe-president Of the
metropolitan LIE Insurance Company: William
g.as Of William A Read & Co: John B. Dennis
:, Blair & Co. and Gordon Abbott OF the Old
Colony Trrst Company. Boston.
The interests OF the waba sh Railroad and III.
Wabash P1ttsburg Terminal Railway through
which the wabash system gains ;ts entrance into
F-tsburE. are closely interviewer. The IS 10000
three year per cent Wabash notes. which ma
tu-pd on May TO- 1907. and were extended for two
wears are secured by the $40 900 900 capital stock
ana ssspOo ao Of the first mortgage bonds Of the
wabash PfttshJGrg Terminal Company IN addition
n s. 500 nao wabash first refunding A. and IN the
collateral q ave year ~ Per cent notes Of 1905
~ the wabash. Of which s. 10000 are outstanding
are about IS 0aocao wabash Pfttsbrrg notes Close
--s~c arrangements exist also between the two
-osds IS they DO between the waha -Pittshurg
,nd the Wheeling & Lake Erie. which the former
controls.
IN cne way, II was said yesterday the Wabash
snd the Wheeling & Lake Erie would benefit by
rscsiversfhp for the Wabash Pitisburg Terminal
fr- wears ago these two roads pledge 3 Der cent o-
their gloss earnings derived east of Chicago and
- Louis from traffic interchanged with the Wa
hesh-Fitts5Urg TO the payment OF interest on the
frs and second mortgage bonds Of the Wabash
Pitfsburg company. payment which would no
longer De obligatory If the wabash-Pittsburg de-
faults Il its interest the first mortgage bonds
the seconds only income bonds until 1910. when
tire interest becomes fixed charge-snd passes into
the hands OF receivers.
Ru-norS were current yesterday Of a rece!vership
for the Wheeling & Lake Erie also. These reports
have been in circulation for several weeks bur the
strength CT the company's short term notes
which have had considerable advance, has tended
&c confirm the rather positive statements that the
notes. Of which $4,000 are outstanding will be
taken cs-e o. at their maturity, on August ! All
TIE Could issues were weak yesterday. Wabash
common and preferred lost respectively Il. and 8
points Wheeling & Lake Erie point and Texas
Pacific II, while Missouri Pacific suffered a net
oeCne O. % POINTS closing At 1854. IN the bond
department. the Could securities were similarly
weak, and the Wabash -Pittsburg first mortgage |
hands, which had closed on Wednesday at a. fell !
20 - while the second mortgage bonds lost about
points. closing 1t ga. &,
The extreme weakness II Missouri Pacific was !
cue not only 10 the difficulties OF the Wabash |
F1ttsburg Terminal but also 10 ? report. credited
= good quarters. that TIE company would suspend |
dividends. The last serri-annual dividend Of pa 1
Per cent in January. paid in stock. but on /
T1rnors that the directors their meeting next |
morth would resume the declaration Of cash divi- |
osnds the stock recently made q rapid advance,
selling high $40 May 20. 19 points above
its low OF yesterday. II is estimated by bankers
familiar with the conpany's condition that the
ut earnings applicable u dividends viii n the
current fiscal year not be il excess OF Per cent
u lis applicati ton the New York Stock Exchange
t0r listing OF additional 10000 OF its So
tNeD) per cent gold loan Of 1856 which au-
thor,zed by the governing committee Wednes-
cay, the company presented z statement showing
that the income for the first nine months Of
TIE fiscal year. after payment Of ore sern-annual
dividend amounting 10 8, e35,21o only sg71.336
According 70 advices from P3ttsburg. 4 party Of |
high officials OF The Grand Trunk Railway and OF
ths Buffalo Rochester & PIttsburg q Gay two !
ego made an inspection trip over the Wabash
PittsbUrg and the Wheeling & Lake Erie. but the
Inference that these roads contemplated bidding
fr- TIE Wabash Pitts5urg. control OF which would
gre tie Buffalo Rochester < Pittsburg at inde-
pendent entrance into Pittsburg declared TO bs
unfounded by President Yates of the latter road /
s1d Third Tsce-President Fitzhugh OF the Grand
Trunk