New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-05-15
BIG GOULD BOND ISSUE
DenUer s Rio Grande Mortgage to
Secure $50 900, 900, 1t Is SAID.

An important further step was reported yester-
DAY IN the working out Of the plans for financing
Rio Grsnde Railroad Company, it is learned from
trustworthy sources IS about to create mortgage
securing issue Of s150cNoN bonds authorize
ton for which Will be asked from the stockholders
al a special meeting 10 be held within a few
weeks. The bonds expected to bear per cent
interest and Will probably for fifty years.
OF the t,ronosea s15o o10co there will be reserved
about ssaoooou for refunding the outstanding
bonded obligations OF the company the remaining
$50 being available for future In the de-
veloprnent Of property and for ether purposes.
The development work is expected TO include the
double tracking Of part Of the main line Of the
Isenver G Rio Grande and the Rio Grande Yves
en- as well the construction Of lines. The
mortgage which will he a first lien existing
properties Will also about hundred miles
q unnortgaged road which has been constructed or
bought within the last ten years
The plan includes the merger OF the Denver
Rie Grande with the Rio Grande Western, the en-
fire capital stock OF which has been owned by the
Derver & Rio Grande for several years, during
which period the roads have been operated as
7ra cticaily It Is also understood that in time
the Western Pacific viii be merged with the en-
larred Denver & Rio GTande.
Only 8 Gay or two ago the Denver & Rio Grande
arranged for the sale Of s1o0oooo0 notes TO syn
z,ca+e composed Of Blair & Co, William Solomon
& Co and William A Read & Co who have taken
an option for the purchase Or Al additional 70
nm naa These notes which have been issued 10
ob-sin funds for the completion Of the Western
7sc;ac are TO be secured by the new Denver d
77io C;rande bonds. and viii Re convertible INTO
those bonds. s 1.
The latest report about the Western MarSlaho -
,hs+ that Gould property, now in reCelNei
bands is TO be bought by the Reading, WIN WHICH
a. connects at Gettysburg. Penn mat arrange
-er+ would give the Reading. one OF the most I'M
o-+sr+ Of the coal roads, access to the pituiinous
oaI fields OF West Virginia and an Quiet at t7si
more as well as Philadelphia The r'inor, now
.ver was declared yesterday by men ciosey 1oehli-
<ed with the control OF both properties 10 pe Will
OFT foundation and the best opinion is that no sane
- -be Western Maryland will be enecteo unuli
after the United States Supreme Court shan nave
,.se5 down a.. opinion the test proceedings re
Ip-rr to the consttutionalty Of the railroad rate
laws prohibition OF the holding Of coal lanos py
railroads
Esr-nors were current in Wall Street yesterday OF
,ba 1roposed Acknowledgement Of the Gould sys-
.7, me Of the stories being that the Missouri "a
cfs- had been offered 10 the Pennsylvania This
.+7-v was denied by high PENNSYLVANIA author
a., -ro declared that his company had no lnleh-
-5 n. altering its policy Of not crossing the MIS-
.5sefnn River Another report was that the Wa
hash would go to the Lackawanna. but there was
- o,nsrrnation Of this story, and the progress OF
-ta financing which IS being arranged by George }
r--,1s .,s his associates would seem to indicate
rat The Gould system will be preserved intact
Baltimore May 14,-B- F. Bush. receiver OF the
Western Maryland Railroad denied the reports Of
ira sale of that road He said he had heard moth
ing whatever OF any such deal