Evening journal., 1909-02-23
RIGGS EXPLAINS
TROLLEY TROUBLE
Expresses Every Confidence
in the Interstate Rail-
ways Future

So much gossip has grown out Of the
recent announcement Of the effort on the
part Of different holding companies to
get possession Of the bonds Of the Inter
state Railway ompany, controlling the
Wilmington City Railway Company, that
John A. Rigs. president Of both OF the
latter corporations. has issued a personal
statement concerning the situation.
Mr.. Riggs observations are particu-
larly pertinent. coming as they do from
one entirely familiar with the subject in
all its details His full explanation fol-
lows:
THE proposition made TO Interstate
Railways Company bondholders by the
American Railways Company makes II
proper that / should inform them OF GER
tain facts which have not yet been made
public. In December last, William II.
shelmerdine and z. Clarence Miller
called on me and asked for leave TO ex-
anime the property OF the Interstate
Railways Company. admitting that they
wanted this information for the heneht
Of the American Railways Company,
which contemplating bidding for the
property at the anticipated sale which
would follow after default on the in
terest due February /. on the Interstate
bonds. As the manifest interest OF the
American Railways Company would bl
TO buy this property as cheap as possi
bic. / could not see that Il was 10 tn,
interest Of either my bondhoiders or my
stockholders to give this information and
upon the advice Of counsel that the ap'
plication was premature I refused IT,
subsequently, these gentlemen allied
themselves with two bond holders who
for personal reasons were dssanfected,
TO block the effort which was being made
by the large bondholders, in association
with Edward b Smith 4 Co.. 10 get
together in the proceedings preliminary
TO a reorganization OF the Interstate
Railways Company in the interest Of the
security holders Of that company. II II
were possible 10 block this effort Of tn,
large bondholders It is manifest that the
American Railways Company could Sc
cure our property on their own terms
The whole question IN the case is wheth-
er the Interstate Railways Company shall
be reorganized in the interest Of its owr
security holders. or IN the interest Of
the American Railways Company
''The proposition provides that Inter.
state bondholders shall receive the equiv
alent Of ? IA per cent. upon their pres
ent Interstate bonds. all surplus earned
by the Interstate properties over tha
Ia per cent. going 10 the American
Railways Company. and no payment o
interest to be made at all until July 1. 1910
II the American Railways Company
buys at the sale, this bond will not b'
payable for fifty years If some one els'
buys, then the American Railways Com
pany apparently contracts TO buy the
bonds at par on or before January /
1915. II the purchase is made by som'
one else at a price which would ne
bondholders more than 50 per cent othe
bondholders will get their full dividen,
In cash. but bondholders accepting thi
proposition would have their so per cent
in fve year bond and would receive ii
cash only one-half of the amount owe
50 per cent. "less expenses" which
might be realized by the American RAN
ways Company.
"I am myself. the holder OF p goo,
many bonds. and this proposition ha
no attractions for me at all. I am
believer in the Interstate properties an,
feel confident that when we are rid o
our present financial complications
which have prevented our financing ou
capital requirements OF late years, an,
when the physical condition Of our prop
critics has been imrroved. we will be abl
70 earn many times ? Ia per cent. upoi
the amount Of our present bond issue
earnestly hope that bondholders will no
sacrifice their bonds by accepting thi
proposition"