The Detroit times., 1910-09-26
D. u.&. PtlHEIHe 10
RESUME PAYMENT
OF DIVIDENDS
Action win Be Taken II stockhsldsxs
viii Underwrite q, 500, 900 wsrth
Of Bonds Enabling Company 70
Make Loan on Them.
President Hutchins in Circular Let
ter Expresses Hope That City and
Road VIII Soon Adjust Difficulties.

plan whereby the Detroit United
railway expects to resume the pay
ment of dividends. discontinued three
years ago, IL being submitted to the
stockholders by President Jere @.
Hutchins. under a resolution of the
board OF directors, In the form of =
circular letter. The plan In to have
the stockholders underwrite $780,
900 OF the company's bonds now In
the treasury at SO IL, the purpose be-
Ing to obtain q loan on these bonds
and underwriting with which to take
care OF a balance of $500, 900 Of So
100000 In gold notes, payable this
year.
BY underwriting the bonds, that II.
guaranteeing to buy them at q GER
tain price, the stockholders would
make the bonds marketable and the
bonds would thus become good col
lateral security for q loan without an
. 49,. - - - =, =. r.. - !. -
The plan is offered to the stock
holders purely az business PROPOSE
ton and IL II Ia acceptable to them
there Is seemingly little question that
dividends will be resumed In the verp
near future.
The hope is expressed that, before
the expiration OF the year during
which the loan IL to be carried, the
city and the company will have reach
ed satisfactory adjustment OF their
differences.
Mr.. Hutchins' letter, which il in
| printed form, follows:
Detroit. Mich, Sept. 81. 1910.
To the shareholders OF the Detroit
United Railway:
Since the discontinuance OF the divi-
| dend on the stock OF this company In
1907, conditions have been such as to
| seriously interfere with the financing
RaSRns BEEN by the
titude of the city of Detroit, II has
been necessary to meet capital expen-
Instead OF by the proceeds from sales
| of bonds which, under the existing
conditions, could not be advantageous
Since the beginning of the year 1907
over 100000 has been expended on
}ha, pE9Perty, , out OF sasn dn. AND the
tsrsniiv . Pcsau9n 'he company ma
i And In addition to the necessary up
keep and development OF the property
which S exssss nor iso ae d sss
been paid on account of the $4,000, 00o
three ear gold notes which were then
outstanding. leaving balance Of ST.
| 500 900 still to be met.
III this amount can be provided for.
| II Is the intention to resume dividend1
on the stock. and the cooperation OF
shareholders Is asked for this purpose.
or the bonds held in the treasury OF
the company $1.500.000 are now offered
! to the shareholders to be underwrttten
\ at .S2h, the intention being to obtain .
loan on the bonds and underwriting
for one year from February. 1911.
which will provide for the payment OF
the 1880, 900 balance due on the So
| 000, 900 gold notes above referred to.
The price at which the bonds are be-
ing offered will yield a return OF about
six per cent on the investment.
1t Is hoped that before the expiration
OF the year during which the loan 10 to
be carried that the differences between
the city and the company Will be salts
factoriiy adjusted, enabling the bonds
| ers Of their obligation. for which they
| will then receive q bonus OF two per
cent on the amount OF their respective
| underwriting
| dividends will entirely depend upon the
| required amount OF the underwriting
being obtained. shareholders are par
ticularly requested to assist In getting
| the full amount taken up.
Please complete the enclosed form
for the amount OF your subscription
and forward without delay to A. J.
| Ferguson, vice president, p. o. box 647,
| Montreal Canada,--.
| BY resolution of the board.
j. c. HUTCHINS,
| President.
The company issues a printed state
ment In this connection showing that
the capital stock of the company,
authorized and issued, Is $12,5O0, 900,
while the total authorized bond issue
Is s25 200, 900, OF which $685. O6 In