New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-05-15
PUBLIC UTILITY NOTES.

The foreclosure sale of the Sedalia Mo,
Railway and Light Company has been sot
for June I. After the sale has been con.
summated the company will be reorganizod
and its operation will be turned over to
Henry ]" Doherty & Co. in the interest Of
the first mortgage bondhodcrs.
June has been fixed as the date of sale
at foreclosure proceedings of the Sedalia
Railway and Light Company and immedi-
ately thereafter the company will be reoT-
Ganlzed and operated by Henry T.. Dohertv
N co. for the first mortgage hondholders.
The company, which operates the street
railway, electric light and power and gas
services of Scdalia. was placed I'm tho
hands of receivers in June, 1910. on suit
brought by the city Trust Companv. ,rus-
tee for the bondholders. \ committee of
bondholders, composed Of otto r. Barnard
and other New York men, which has been
working toward rcorga nization has ac-
cepted the plan proposed by Henry l.. Do
herty d CO.
As soon as the property is hid in by the
hondholdcrs committee it will be turned
over 10 now company To lie organized
under the laws of Missouri The new com
pany Will have an authorized bond issue Of
%5tO.O0o, of which only $4,000 Is to be now
issued, &oo,ooG preferred stock. 100000 to
he issued and 100000 common stock
| nder the plan of reorganization the first
mortgage bondholders will receive - per
cent of their holdings in new bonds and %
per cent in the new preferred stock The
$hAV0 of preferred stock is convertible for
seven years into bonds. at the rate Of par
in stock for tace value in bonds provided
earnings applicable To interest shall for the
preceding twelve months he one and three
quarters times the interest on the bonds
then outstanding, plus one and three-quar-
ters times the dividends on the preferred
stock at the then cumulative rate. the pre-
ferred dividends for all previous wears hav-
ing been fully paid
Dividends ON the preferred will he ! per
cent the first year, with an additional per
cent each year until the fun rate Of . per
cent is reached. These dividends are to be
guaranteed 10y the Gas Securities Company
Of New York until such time as the stock
shall become convertible into bonds. 1t is
believed that the $4,000 of bonds ana 500,
"o1 oC preferred stock VIII bc sufficient
after paying all expenses Of the committee
rot assumed by the now company. TO give
the bondholdcrs 80 per cent of each.
Two million dollars. the amount of com
mon stock. will h" delivered TO "A trustee
for Henry l.. Doherty &, Co, to be held
until net earnings applicable to interest Oh
the bonds and dividends on preferred stock
shall equal the total amount Of such in
tcrest and 70 per cent additional when the
stock will pass 10 the fun ownership Of
Henry l.. Doherty & GO.
Tho Tennessee Railway Light and Power
Company. recently incorporated TO take
over the Nashville Railway and Light Com
pany, the Chattanooga Railway and Light
Company, the Cleveland Electric Light
Company and the. Tennessee Power Com
pany has completed it's organization.
The company is now IN operating charge
OF all its properties. II is incorporated I'M
der laws Of Maine, with authorized capital
of 100000 6 per cent preferred. slo,25o,oco
outstanding and 100000 common stock.
or the preferred stock S2.5oOc00. which was
given in exchange for common stocks OF
underlying companies. will receive no diVl-
bends until after December !. 1912. The
company has no bonds except those OF UNI
deriving companies.
Earnings are sufficient to pay interest on
all outstanding bonds and dividends or the
$40 80 O00 preferred stock outstanding. with
the completion OF the hydro-electric plants
of the Tennessee Power Company and the
extension of its transmission lines IT IS
believed that the income of the company
will increase rapidly.