The Detroit times., 1910-09-27
|D.U.R. PLANNING TO
RESUME PAYMENT
Of DIVIDENDS
Action Will Be Taken II Stockholders
win Underwrite 81, 500, 900 Worth
Of Bonds Enabling Company To
Make Loan on Them.
President Hutchins in Circular Let
ter Expresses Hope That City and
Road Will Soon Adjust Difficulties.

A plan whereby the Detroit United
railway expects to resume the pay
ment of dividends. discontinued three
3 years ago, is being submitted to the
stockholders by President Jere c.
Hutchins. under a resolution OF the
board OF directors, In the form OF a
circular letter The plan Is TO have
the stockholders underwrite $780,
) 900 OF the company's bonds now in
the treasury at 50 l-2, the purpose be
ing to obtain loan on these bonds
and underwriting with which TO take
Z care of a balance OF $1,500,000 Of $3,-
: 100000 In gold notes, payable this
year.
BY underwriting - bonds, that is.
guaranteeing 10 nem at a GER
tain price, the ST., holders would
make the bonds marketable and the
bonds would thus become good col
lateral security for a loan without an
actual purchase by the stockholders.
The plan is offered to the stock
holders purely as a business PROPOSE
ton and IL IL Is acceptable 10 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
3 which the loan Is to be carried, the
cssy and the company wiz have reach
ed satisfactory adjustment Of their
differences.
Mr.. Hutchins' letter, which is in
printed form, follows;
Detroit Mich, Sept. 81, 1910.
( To the shareholders OF the Detroit
= United Railway:
Since the dtscontinuance OF the divt-
dend on the stock Of this company IN
1907. conditions have been such as TO
seriously interfere with the financing
OF the property. The marketing OF the
bonds having been retarded by the at
titude OF the city OF Detroit, 1t 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 $4,000. 900 has been expended on
the property out of earnings and the
financial position OF the company ma
teriolly strengthened.
And in addition to the necessary up
keep and development OF the property
s5d sxs for s che d sss
been paid on account OF the 100000
three-y ear gold notes which were then
outstanding. leaving balance OF W.
100000 still TO be met.
IL this amount can be provided for.
IL is the intention to resume dividends
on tho stock, and the cooperation OF
shareholders Is asked for this purpose
OF the bonds held In the treasury OF
the company $500, 900 are now offered
10 the shareholders TO be underwritten
at SAG, the intention being 10 obtain a
loan on the bonds and underwriting
for one year from February, 1911:
which will provide for the payment OF
the $500, 900 balance due on the So
900. 900 gold notes above referred to.
The price at which the bonds are be-
ing offered Will yield return OF about
six per cent on the investment.
IL Is hoped that before the expiration
OF the year during which the loan IL to
be carried that the differences between
the city and the company will be salts
factorify adjusted, enabling the bonds
to be sold and relieving the underwrit-
ers of their obligation, for which they
will then receive a bonus OF two per
cent on the amount of their respective
underwriting.
AS the question OF the resumption OF
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
and forward without delay TO A J.
Ferguson, yice-president. p. O. box SAT,
Montreal. Canada.
BY resolution OF the board.
J. c. HUTcHINs.
President
The company issues printed state
ment In this connection showing that
the capital stock of the company,
authorized and issued, Is 1880, 900,
IL 25.000,000, OF which $23,333,00 Is