New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-02-28
new ROCK ISLAND
COMMITTEE FORMED
Will Protect Interests of
Stock of N. J. Corporation
w. A. Read Chairman.

Following the formation Of protective
committee to look after the interests Of
/ the collateral trust bonds OF the Chicago.
! Rock Island & Pacific Railroad Com
pany. announcement was made yesterday
that William 4. Read. Arthur Curtiss
James. William church Osborn. ogden
/ Mills. Francis L. Hine Andrew J. Miller
and Benjamin Strong, jr., would consti-
tute committee TO protect the interests
Of tho stockholders Of the Rock Island
Company. The Bankers Trust Company
was appointed depository. and Hornblow-
err Miller & Potter and Cadwalader,
Wickcrsham & TAFT counsel.
The committee stated that tho cxi-
eencies of tho situation required prompt
action, and stockholders are requested 10
deposit their certificates Of stock with the
least possible delay
II was learned yesterday that the
formation Of these committees was due
primarily to the failure of the committee
Of Rock Island directors appointed a few
weeks ago To produce plan for the dis
solution Of the two holding companies
satisfactory TO tho various interests rep
tention of the two protective committees
10 formulate a plan before the interest
falls due on the collateral trust bonds, on
Nav /. Should the committee be success
ful in obtaining the consents of the stock
holders and the bondholders before that
time a reorganization. IT Is stated, would
be effected without a receivership.
William A. Read. chairman Of the stock
holders committee, said the stockholders
stood ready to put up the money needed
by the railway company provided an equi-
table agreement could be reached with
the bOndholders.
III not" lie added well have TO 90
into the ASH heap. The railway com
panvs immediate requirements aggregate
Sg5.OOOO0O. The property IS one of the
best i'm the country. but its equipment Is
IN bad condition, and new freight cars are
needed to handle the increasing business
The road is also suffering from the bur
den imposed by the two holding COM
panies. Something must be done to rem
edy the errors of the past.
II am a financial doctor. Phelps, Dodge
& Co asked me in for that reason to take
hold of the patient and try to cure him.
Everybody else on the committee is
financial doctor and is trying to do the
same"
Mr.. Read was asked to explain his
reference TO the errors in the Rock
Island management.
The errors" he said. were the pur-
chase Of the Frisco and the Alton. When
the directors purchased those lines they
expected them TO turn out WELL but they
were wrong. If the Rock Island to-day
had the s2j. 900. 900 it lost on the Frisco
deal it would not need any reorGaniZa-
ton"
The Dutch holdings in the Rock Island
Company, Mr.. Read said. amounted TO
100000 shares \. J. Miller, member OF
the stockholders committee and of the
firm Of Boissevain q Co, is their repre-
sentative. 4 large portion OF the col
lateral trust bonds is also held in Hol-
land.
\ man holding an important interest IN
the Rock Island declared yesterday that
a defnitive plan for reimbursement OF
the company's finances would probably
not be announced much before the May
interest on the collateral bonds of the
railroad company fell due on May l. Inc
formation of the two protective commit
tees, however, according TO this. leaves
the way open for the railway company
TO carry out it's plans for Immediate
financing. Application has been made to
the Illinois Railroad Commission for per-
mission to issue s75Oo,OOO collateral per
cent notes which will provide for the
companys needs for the current fiscal