Bisbee daily review., 1914-03-01
THE ROCK ISLAND AND PRESENT
 STATUS OF COMPLICATED AFFAIRS
Will Be No Receivershp, It Is Said; More Satisfactory Means of Adjustment Will Be Worked Out Decreased Efficiency, Trouble Announcement of No Interest in System by Dodge Weakens Roads Market Standing

in answering a query as to the likelihood of receivership for the Rock island the Boston commercial enters into an exhaustive and very interesting narrative cf the Rock ls- land organization. the present status of its several issues and the ways which offer opportunity at this time for readjustment of its affairs. The article brings out that the apparent cause at Bottom of sickness of Rock Island lies in decreased efficiency, a complaint that requires immediate remedy. As to market position of it's issues, it is pointed out that the re- gently announced fact that Phelps. Dodge are not identified with owEer. ship of the road, has served to take away a good deal of confidence that developed last fall, when rerprt was current that PhelpsDodge imsiness ability and financial strength had come to the assistance oi the system.
 In all, the Boston Commercial arti. cle is very enlightening and carries no small local interest, mainly be- cause of the traffic arrangement has brought the Rock Island system into consideration as an Arizona transpor- tation factor, as it truly Is to very important extent, particularly, as it has to do with directing attention and investment to the agricultural and mining possibilities of the state s.- lT connection. The Commercial says:
 We have ic from an interest in close touch with Rock Island affairs that none Of the various plans now under consideration for the reorgani' zation of the Chicago, Rock Island & Pacific system contemplates re- ceiyership.
 The newspaper reports which you refer to, suggested that the Rock ls- land and officials might adopt the plan of passing the dividend on the stock of the railway, thus forcing a default in interest of the Chicago, Rock Is,and x Pacific collateral trust 4s which is due May l.
 This would result in a receiyership for the railroad enabling the bond holders to take possession of their col. lateral practically the entire capi- tai stock of the railway company. They would thus be in control of the property and a reorganization Of the finances Iof the three companies could proceed with the elimination Of the two holding companies as the desired result.
 Neither the main principles nor the details of a final plan have been de' cided upon at this writing, but If we are rightly informed the idea now receiving the most attention Is to se- cure the consent from the collateral trust bond holders for readJust' ment Of the finances of the three com panies that will do away with the holdings companies and reduce the direct obligations of the road.
 To understand the situation when ccnfronts the leaders of the road, II IS perhaps well to briefly describe the architecture of the Rock Island sys- tenn, so to speak
 Description of System
 The Rock Island financial structure may be likened to a pyramid with the Chicago, Rock Island & Pacific Raii- road company owns about 95fS. It ac- auired this stock by Issuing in ex' change therefor the 48o coliaterai trust bronds of POOP dollars for dol' lars and the holder of each share or Railway stock also received in the ex- change s7O par) of the common g,ock of the Rock Island company. The latter owns the entire capital stock 5,OOO,OOO) of the Railroad company. ,
 Included in the aggregate capitaii' zation of the entire system IS the funded debt and capital stock or the Rock Island company and s7ooo'ooo 5es gold bonds of the Railroad com, com many. The collateral trust 5s or zooz A. G.oluAaa .fnea thQy are