The daily sentinel., 1913-12-31
W|LLREORGAN|zE
NIERURbAN
COMPANY
Committee Named TO Take Over
Grand Junction & Grand
River Ry. Company.

Announcement OF the reorganiza-
tion OF the Grand Junction 4 Grand
River Valley Railway in order to
place it upon sound financial basis,
was made by E. A. Sunderlin, presi-
dent of the company. in letter re-
ceivcd by the Grand Junction bond
holders yesterday.
The plan, as outlined in the letter
to the bondholders, who also control
the stock of the company, provided
for the financing of the corporation,
SO that 1t may again be made profit
able of operation. The municipal
ownership agitation, which it is
charged prevented financing of the
proposed extensions of the interurb-
an line, that it might be made prof
table. is frankly given as the reason
for inability to pay the interest on the
bonds for the year Just closed.
II is said. though not with the au-
thorlty of the company officials. that
either the amount of the bonded in
debtedness will be reduced, or that
the bondholders will be asked to ac-
cept reduction in the interest rate,
as despite adverse conditions the
company has been earning between
81 and per cent on its outstanding
Indebtedness.
The company has been very FORUM
ate in securing assistance of some of
the leading financiers of the state
in the work of reorganization. and
committee. composed of Il. p. Shove.
Tyson S. Dimes. A. e. Carlton and E.
A. Sunderlin has the matter in
charge. The bondholders are re-
quested to send to the committee at
Colorado Springs, an agreement per-
mitting them to act for them.
In letter to the bondholders Mr..
Sunderlin states that conditions in
the valley have improved to some
extent, but the company has latterly
been subjected to a mtlnicipal. owner
ship agitation in Grand Junction
which has arrested its plans for in
creasing business, affected its credit
and necessitated making provisions
for retiring its floating Indebtedness
to banks"
The company has $l,O00.000 in
first mortgage bonds, bearing 6 per
cent interest. and floating indebted
ness amounting to S241 .0OO, drawing
6H per cent interest. 1t is also stat
ed that the increase by the state tax
commission of more than twelve
times the assessments of year ago
indicates considerable increase in
taxation burden for the future.
The letter further says: The COM
pany is now earning from combined
operations between 3 and 4 per cent
on it's indebtedness, even under exist
ing conditions. but it could not meet
its entire bond interest on January
1, 1914, without incurring further
floating indebtedness.
The majority of the bondholders
have already agreed to turn the bonds
and control of the company over to
the committee named above, and it is
intimated that plans will be formu-
lated for effecting increase of bust
ness or reorganization of the COM
pany If that seems desirable. The
committee is made up of Denver. Col
orado Springs and Cripple Creek fl
nanciers.
The committee is given full au-
thority to arrange for the consolida-
tion of all properties of the company,
or the sale of any of them. or the
transfer of the properties to new
company, or to reorganize the old
company.
When the line to Fruita was built
originally, it was intended to extend
the interurban to Palisade and the
Plateau Valley, and the agitation for
municipal ownership made the fl
nancing of this project impossible, as
a result burdenins the local system
with heavy overhead expense that
under normal conditions would have
been distributed over an extensive
system.