Shoshone journal. [volume] (Shoshone, Idaho) 1884-1931, 1914-04-17


: time Of the receivership each Of IL
subsidiary companies was stripped o.
working capital and wes indebted (,
banking institutions upon note,
which the American Water Works s
Guarantee company had indorsed "a
the total net amount Of approximate
| ~ Ss05OooO. In addition 10 These
entangIements the American W. er
Works z Guarantee company J.
pledged, as collateral 70 us Gaaran.e
~ irrigation bonds Of The California.
Idaho company. the major portion Of
value Of It's assets
By the terms Of the reorganization
plan che California -Idaho bondhoil-
srs are 10 exchange their present
bondB fof new 8 per cent twenty
year collateral trust bonds Of the re-
Organized company par for par agaia7t
present boldings Tho holders of the
other Irrigation issues. aegregatins
sl4o97so0 IN principal amount are to
be paid si.oOOoo0 Tor the lease Of their
guarantee. Tho bondholders will re-
eeiye 81 per cent interest in the equl-
ties remaining 10 these properties af-
Ger the payment Of principal and in
tefest On their bonds. the new COM
pany receiving 40 per cent interest
therein. Under the reorganization
plan there have been no changes in
the capitalization Of the subsidiary
companies Al OF the assets will be
taken over by the new company. but
there viii be no guarantee by the new |
company on any subsidiary Issues. all
the guarantees Of the old company be-
ing cancelled and released:
Bank creditors whose paper to the
amount ofss.O5O.OOO has maturcd,
have agreed TO accept for portion
Of that paper twenty year per cent
trust bonds for the reorgan-
lied company at S71s. the remainder
being renewed and extended over
total period Of six years.
The reorganized company expects
10 raise s45oOooO through present
stockholders by subscriptions to new
stock ana by assessments on stock
holders who do not subscribe. All as
iesaments must be paid in fun on or
before April "a. 1914, and in case Of
iefault stockholders win forfeit all
interest In the recognition. Subscrip-
ions to new stock may be paid in full
m or before April q. 1914. or in in
italiments ending October n. 1914,
md any stockholders failing to sub
cribe or pay the first installment of
heir subscriptions on or before April 4
z. 1914, will forfeit all interest in the
The committee has caused an un-
lcrwrlting syndicate to be FORMED, y
Witch has underwriten the S4,500,OOO
o be provided and has agreed TO
AXE the pay for all stock not sub .
cribed for by the stockholders. This .
however has not been
arried cut by strictly banking syn
icate but has been participated in
generally by banking firms and indi
iduals. both hers ana abroad.
Upon o., fun contamination of the
cor. nized plan. it is anticipated that
he new company win possess among
theirs. assets consisting Of 100000
4 cash and SG,s33.sOO Of first mort E
ago Donds Of The California; Idaho
ompauy which bonds are a prior
len upon $4,000 acres Of land in Cal
'ornia. The S2.OOO.OOO Of cash is the
mount estimated to be left from the
sorlsing capital subscribed after ac-
uiring the properties, paying cred
ors OF all organizations and reorgan-
'ation expenses. Through its owner
hip OF the capital stock Of the United
Water \ Light company the reorgan-
ted company win own directly or in
irectly S42.0ii.5O0 of the outstanding 4
took Of thirty-five elcetric-light,
ater- works and traction companies
nd one coal company. These COM
anies together have $50, $3.50 of
lpital stock outstanding, S1,3S5,oo0
I which is pledged under the mort
age Of the United Water & Light
'mpany. q
Messrs Sanderson & Porter estimate 3
Ie earnings Of the new company for n
e first full years operation and in
me Cor securities held as follows;
arnings received and accrued are
aced at si.500.s5S. and 100000 is al y
we'd for amounts to be left with sub
Harry companies and for general ex-
nses Of the new company. Interest
ina Sg go OOO ~ collateral trust