New-York tribune., 1914-12-24
MAY PUT MORE
INTO ROCK ISLAND
Phelps Dodge Interests
May Attempt to Save
Losses.

should no hitch arise in the expect
ed confirmation by the court on Janu-
arv 2 Of the sale Of the stock Of the
Chicago. 70 * Island & Pacific Railway
20 lanes y. Wallace. representing the
bondholders of the Iowa holding com
pany. the concluding chapter IN the
history Of the events which preceded
the recent fore closure sale VIII nave
been written. -,
While in effect the New Jersey hold
ing corporation, known as the hocK
Island Company, as well as tne Chi,
cago, Rock Island e. Pacihc Kallroad
Company, will Oon be out OF existence
through the passing OF the control OF
the operating property into the hahos
of the collateral trust bondhoiders OF
tho Iowa comps ny, the actual transfer
of the railway cOmpany's stock INTO
their possession will make the invest
ment of the stockholders Of the New
Jersey company not worth the paper IL
Is written on. ...1
The largest individual loss which
will be sustained on the completion OF
this transaction is by the Fnelps-
Dodge interests, who purchased rom ril
Kuhn. Loeb e. Co, IN 1910, 9lo,oOV'ooV
preferred stock Of the Rock lslahd
CoUpanv az a price estimated TO nave
been between 81 900 600 and Sl2,3S5,-
0OO Al Yesterdays closing price on
the stock Exchange this amount OF
stock was worth S254,375, salvage
which will be eliminated entirely "neh
the New Jersey holding company mas
formally been dissolved.
Opinions differ in Wall street over
The amount of Rock Island company
stock held by ID. 6. Reid, one OF lhe
organizers Of the holding structure
which Is about ready to crumpie. AMT- M
cording 70 interests m close louOh WIN WIZ
tho present management Of the prop.
ertv his holdings are still large. II
so he also will have TO charge his
losses TO profit and loss account
The wiping out of the two Rock ISL
and holding corporations Will mean the
oiinniration Of 1857 100000 IN capltal
securities which have been saddled on
the operating property since they were
formed in 1902 by the Reid-Moore IN
when the railway company has
nassed into the hands of the collatefai
inst bondbolders Of the railroad com
nanv thew will Immediately face the
problen Of providing funds to meet
nreesinp financial needs. According 20
The Investigation made by j. VI. Schu-
macher. chairman OF the Doald, Inee COdPo
Grating company will need S5ZUVO,UOo
during the next three years T. w. NC
Kenna. who made an independent IN,
vestigatjon for the bondholders. placed
the company's requirements at S0o,UuO'-
600. but later revised them TO cover
only the three-year period. u
Unless the bondholders. VINO VIII
soon become the stockholders OF the
railway company are willing 70 make
overtures to the stockholders OF the
New Jersey company they must raise
tbis money. The Phelps-Dodge inter
ests sS at present have not yet made up
their minds whether they would be
willing 90 put moro OF their money
NC Re Pock Island, with the possible
result Of saving something Of their
present investment, but Wall Street
believes that some working agreement
viii be made between the shareholders
Of the Rock Island Company and the
sb,,cboidcrs of the railway company 10
proyide for the latter's needs.