The San Francisco call., 1908-09-10
WILL DECIDE ON
BIG BOND ISSUE
Stock Holders of the Denver
and Rio Grande Railroad
Meet at Denver
One Hundred and Fifty Mill
lions Needed for Refunding
and improvements


An important meeting of the stock
holders of the Denver and Rio Grande
railway company will be held today in
Denver, when they will be asked to
ratify a proposition already agreed
upon by the directors TO authorize the
issue of sl5O.0O0.O0O first and refund
ing mortgage bonds, to bear date of
August 6, 1908, and to run for AZ years.
The rate of interest is not given,
this being one of the matters which the
stock holders viii be asked to decide.
AS a temporary arrangement the di-
rectors have decided to issue S15,000,-
600 three year gold notes, also to be
dated August 1. 1908, and to be con-
vertible into the proposed new re-
funding bonds.
The company is to have the privi-
lege of extending the period of the
notes to five years. They are TO be
secured by the new bonds in an amount
to be determined by the directors and
the stock holders, who will be asked
to fix the rate of interest
California is particularly interested
in the outcome of this meeting, for
among the other Gould properties
posed bond issue is the Western Pa
cific- Accompanying the call for the
meeting was an explanatory letter
from Z. 7. Jeffery, president of the
Denver and Rio Grande railroad COM
pany. in which he informs the stock
holders that the issue is necessary to
provide for future capital requirements,
the Improvements and extensions of its
lines of railways, and for fulfilling its
obligations in connection with the COM
pletion of the main line of the West
ern Pacific railway company, of which
the Denver and Rio Grande is the
owner of two-thirds, or $4,000, 900. of
the capital stock.
1t will be remembered that about
one month ago there arrived in the
city j. j. Robinson, who has the repu-
tation of being one of the most, emil
nent railroad builders in the country,
who, with J. o. Osgood, chief engi-
neer of the Central of New Jersey,
went over the entire line of the West
ern Pacific with the view of making
report on what had been accom-
plished. Their inspection has just
been concluded, and it is understood
that their report, which will be pre-
sented at the meeting today, will un-
doubtedly be favorable toward the
completion of the Western Pacific.
The attention of the stock holders
will be called to the special stock
holders meeting of the Denver and
Rio Grande company, the old COM
pany, and the Rio Grande Western
railway company, which was held last
July, and at which the proposition to
merge the two companies and the new
one to bear the name of the old COM
pany was approved unanimously.
President Jeffery explains that prior
to this consolida ton the aggregate
outstanding capital stock of the two
companies was S101, ,254200, and by rea-
son of the merger this amount has
been reduced to sS3,769 500. The new
corporation owns all the property and
franchises formerly held by the two
constituent companies.
President Jeffery in his argument
for the approval of the proposed bond
issue, dwells on the fact that the
country served by the Gould lines is
increasing in population and in pro-
ductiveness, and that it may be as
sumed as certain that the business on
the Denver and Rio Grande viii grow
greatly if the company is prepared to
handle the traffic offered.
OF the proposed authorized issue of
$3.50, 100000 s90.00o,o00 will be re-
served to refund outstanding bonds of
the two constituent companies, and
President Jeffery asserts that 10000
600 of the new notes have been under
written and that a syndicate has an
option on the remaining $4,000 900.
The proposed first and refunding
mortgage securing the new bonds will
be a first lien on 129 miles of the COM
pany's lines. and pending the refund
ing of underlying bonds it will, as to