Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1914-01-27
SL25 KID GLOVES TODAY soc PAIR

cato operation of the st. Louis,
Brownsville q Mexico Railway com
pany, the report says, represented Il
profit Of 1866 per cent on the sub
scrption of each syndicate member,
The syndicate was composed Of SO
members, who contributed $3.50
1920 toward the construction Of the
oallrrad and the report adds, the
effect Of the entire transaction was
that the syndicate secured a profit OF
$3,011,929.75 which included the
profits on land the cash donations
and syndicate operations"
The original Brownsville line, 141
miles in length, was turned over for
operation July 4, 1904, and extended
to Sinton, Tex, in April, 1906. In
1903, the report says, a committee of
five was organized, composed of b.
f. Yoakum, Samuel w. Fordyce,
Thos. II. West, Robert II. Brookings
and Edward Whitaker, for the pur-
pose OF constructing the railroad from
Robstown, Tex, to Brownsville. This
committee received about 10000 acres
OF land and large sums of money do
mated for the purpose of aiding in
construction Of the road and devel-
opment OF the land, The land deals,
the cash bonuses and the syndlcated
explorations resulted In a profit to
the syndicate of sS92, ,4S7.12.
After the Brownsville issued its
securities, amounting to s10,7b6,0
as reported by the Texas railroad
commissioners" the report continues.
IAN agreement was executed between
the St. Louis Union Trust company
as syndicate manager and the Frisco
dated December /, 1903, under which
the Frisco was TO purchase these and
additional securities having u par
value OF s445,460 for the sum OF S11,-
$4,000 with interest from December
/, 1909. Payment was made by the
Frisco May 26, 1910, in tho sum of
The principal difficulty with the
Brownsville company has been in
ability to meet the interest on bonds
Its total capitalization is s12.670,-
05.9S; Its capital stock only 100000
and its interest bearing debt s12,179.-
105.9S, all of which, excepting SSS2,-
900 bears interest at six per cent.
The ration of interest bearing Sc
curities," the report says, ito III
total OF securities outstanding Is
9G.06 per cent, an excessive ratio
even when compared with the Frisco,
which has a ratio OF s2.63 per cent"
Desires OF the Frisco for an en-
trance into Chicago resulted in pur-
chase of the Chicago 4 Eastern IL
linois railroad In 1902 by the issuance
Of Frisco stock trust certificates on
the basis Of $3.50 for the preferred
md $3.50 for the common stock.
"In order to meet the fixed charges
upon its 81 trust certificates" the
report says, 3 was essential that the !
Frisco should receive in dividends
from the Chicago & Eastern Illinois |
six per cent upon the preferred stock |
md ton per cent upon the common |
stock each year on the preferred |
stock six per cent was paid each |
'ear. The dividend on the common
'tock has been sufficient TO meet the |
interest requirement on the stock /
rust certificates in but three years
rhe resultant net loss on the COM
non stock amounted as of May 27,
s1s. to E,710.3Ss, which amount
he Frisco paid in interest upon its
ommon trust certificates held by the
'ublic in excess Of the dividends re-
eived upon the Chicago & Eastern
illinois common stock"
The discount on bonds and notes
ther than short term notes issued
y the Frisco lines which ii controls
Egresated b2.602.o7.
The Rock Island secured control
Z the Frisco In lse3 through the