The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1914-07-30
CONTROL Of |.
& {: n. TOPASS
FROM GOULDS
UNDER TERMS OF AGREEMENT IN
NEW YORK, STOCK WILL BE
SOLD. BANKERS CONDUCT NE.
eoTIATioNs. 100000 NOTES

was reached today between the trus-
tees of the Jay Gould estate, which
holds a majority of the stock of the
! International and Great Northern Rail.
road, which, if successfully carried
Gould control of that property to a
group of bankers representing hold
ers of the $11,OO0,OOO three-year per
cent notes maturing Aug. /. The plan
which provides for the extension OF
years at an interest rate of per cent,
gives to the bankers the option to pur-
chase 81 per cent of the preferred
stock of the railroad company and an
equal amount of the common stock of
the International and Great Northern
corporation from the Virginia holding
concern, which owns the entire com.
mon stock of the railroad.
The exercise of the option, however,
is conditioned upon the extension of
all the notes.
Those Conducting Negotiations.
The bankers who carried on the ne
gotiations with George Gould, repre-.
sening the Gould estate, to which con.
trol of the International and Great
Northern will pass ii the extension
plan proves successful, are Alexander
J. Hemphill, president of the Guaranty
Trust Company; Alvin w. Krech, pres.
ident of the Equitable Trust Company;
Benjamin Strong, Jr., president of the
Bankers Trust Company; S. E. Voor
hees, agent of the Royal Bank of
Canada Franklin @. Brown of Red
mond & Co., L. Lancaster G Co., Bal
timore, and Frederick Strauss of j.
and w. Seligman & Co.
In the official statement issued by
Mr.. Strauss for the bankers, it was
announced that the notes will be re-
paid at 101 at maturity, and that a part
of the extension arrangement is a
guaranty of interest equivalent to $500
600 for the benefit Of the note holders,
during the life of the extended notes.
This guaranty, in the opinion of the
committee, will not be needed, but it
was created to guard against any
shortage in earnings.
Pointing out that failure to extend
the notes means a receivership for
the International and Great Northern,
the bankers statement continues:
Alternative is Receivership.
"As soon as the necessary papers
have been prepared, note holders will
be asked to deposit their notes under
an extension agreement with the Cen
tral Trust Company of New York, trus-
tee of the notes. Every note holder
will be given an opportunity to partici-
pate in the purchase of the stocks in
proportion to his holdings. AS the pur-
chase is to be made on what is be-
lieved to be advantageous terms, it
was thought but proper that note hold
ers should be given the opportunity to
participate. 1t can not be too clearly
impressed upon note holders that no
arrangements have been made or are
contemplated, whereby non-assessing
note. holders. will be paid. The alter
native of a failure to extend the notes
is a receivership, with all the compli-
cations and disadvantages that this i'm
plies. Representative of a majority
of the holders of notes have approved
the plan"
The International and Great Nor
thern was reorganized only three
years ago, the present corporation be-
ing the successor of the International
and Great Northern Railroad. Under
the terms of the plan $1O,991, 900 sec
ond mortgage per cent bonds were
paid off at par and interest, the latter
amounting to S2,516,644 The holders
of the third mortgage bonds received
SS,421, $50 in common stock represent
ing par in principal and par in unpaid
interest The cash required at reor-