The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1914-03-06
PORT IS MADE ON
ROCK ISLAND ROAD
,dhoIders' Protective Com
:ttee Told What to Ex-
pect by Chairman.
cH MONEY is NEEDED
/ Is Not Forthcoming the
'esent Management VIII
Step Down and Out.

kW YORK, March 5.-In a report
h bondholders protective commit
T. NJ. Schumacher, chairman of
,hicago, Rock Island & Pacific Rail.
com pany, today made known the
of his recent investigation of
Rock Island lines, including their
nt cash needs and future require.
4 Schumacher estimates that not
than S20,000,000 will be required
hly next to meet bonds aud car
Iccrtifcates maturing, floating in
Idness, including $l23,500,000 due
bilroad company, and interest pay
II together with many other press
lie estimate that cash
nd and net earnings for the period
hggregate $4,000, 900, and the man
cnt is now applying for permission
tke q sbort-term loan Of So 5000
|st securities in the company s
try, 1t is believed that such a
can be obtained, but there will
remain S4,50O,O00 to he provided
>cn now and July |, 1914.
hing for Dividends.
provision is made for the pay
Iof the dividend due May |, 1914,
he stock OF the Chicago, Rock
n & Pacific Railroad company,
|as collateral for the per cent
of the Chicago, Rock Island a.
Ic Railroad company, due in 2002,
ID the Judgment Of the manage
this dividend should not be paid,
Nj. Schumacher.
The system s future need he says:
d order that the railway company
Be operated TO the best advantage
produce the best results, an eI-
turc of about $25,000,000 will DE
red for betterments and improve
j during the next five years. This
3hould put the road In better shape
ampete successfully with its neigh
he physical condition Of the road
u by any means what it should
handle the business which is like
dc offered when the general busi~
of the country reyivcs, as we be-
1t will in the not distant future.
\ our Judgment, however, the sum
= mot be spent Immediately, but
q spread in equal nstallments over
Tod of five wears. -
III Requirements.
! estimated total requirements for
ext five years are given III the re-
-as not less than $50, 100000, in
ig betterments and maturing car
certificates Of $l2,000,000.
INST these requirements the COM
nov has treasury bonds of $l5,-
10, and will receive in Ave years,
y rate Of $3,500,000 annually, ST..
10 of 4 per cent refunding mort
bonds. These securities, the re.
Rays, should have good market
4 credit OF the company can be re
ished
company S other needs arc gone
n length. including the obligations
operating company (the Illinois
datiou). which is responsible fol-
)0,000 OF outstanding bonds.
Schumacher's final conclusion:
nlcss some plan can be devised
has a good prospect OF accom-
W. these results and which is
4 all classes Of security holders
ing the 1 per cent bonds repre-
by your committee, the manage
Cfhat represent will feel II land
TO continue in charge OF the
s The expenditures indicated above
,lade and Il fair plan Of organiza
P'fan be devised which Will pro
HE pccessary funds as needed. ",
1Kreat confidence that the property
!, kroduce satisfactory results, anC
IN time substantial dividends car
: klimed on a proper stock capital
SIhe interests Of all be fully con