New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-20

cent Of the stock deposited as collateral
for their present bonds and part only
with so much as is necessary to surren-
and TO. add value TO tho stock retained
In addition. the collateral trust bonds are
to have the privilege (Which they will he
entitled 10 exercise or To sell, as they
may desirc) TO subscribe I'm cash an
amount equal TO Is per cent OF the face
amount OF their bonds. receiving for such
subscription IL per cent OF the face
amount Of their bonds in preferred stock
and IL per cent OF the face amount OF
their bonds in existing common stock OF
the railway company"
The question was asked What will
become Of the bonds that arc not depos-
tied. should the final reorganization plan
be the same as the one agreed upon yes
terday?" In behalf OF the bondholders
protective committee, Of which he is
chairman, James r. Wallace, president
Of the Central Trust Company, replied;
THE non-depositing bondholder Will get
his pro rata share OF the purchase price
Of the stock"
The stockholders OF the Rock Island
company will he recognized through
rights OF subscription on the followihe
terms:
ITO the holders of the preferred STOCK
paving Is per cent par value OF their
stock in cash. Is per cent OF such par
value in new preferred stock and II per
cent Of such par value in the eMsu"s
common stock OF tho railway compahE'
ITO the holders OF common stock pay
inc I, nor cent OF the par value OF their
stock In cash. Is per cent OF sucn P"'
value I'm new preferred stock and iva per
cent OF such par value in the eN'S''"e
common stock Of the railway COMPANY
,,,ne collateral trust bondholders are
also 70 have the preferential right 10 sun
scribe for and receive the preferred anu
cor,r,on stock so offered for subscription
70 bondholders and stockholders and not
taken bv them. provided such subscription
rie.ht shall he limited so that the common
stock thereby acquired together with all
cher common stock acquired by such
hordbo,der under the plan, either through
subscription or allotment, shall not AT par
value exceed the face amount OF ms oe-
posted bonds.
"Tbe committees feel that 1t is wise ana
in the interests OF all classes OF security
holders TO eliminate the holding companies
and 10 60 back TO the Railway Company
About $50. 10000 par value Of securities
arc eliminated, but all tho equities IN
those securities are retained for their
holders under tho plan. and $4,000" OF
peN money is obtained by issue OF ne"
preferred stock for cash, the expenditure
~ which should greatly inure to the
benefit Of the property and its security
holders. and Furthermore, the way Is
cleared for future financing.
Commenting upon the plan as agreed
unon by the two protective committees
William A. Read. chairman OF the s'och-
holders committee, declared;
I'VE have eliminated S55I"o''o" OF Sc
curities. and in so doing have gone back
! ~ tho Railway Company. We believe that
We are Offering a financial plan new III
Tho annals Of Wall Street Even the most
astute politician will not he able TO ma
fault with it
The plan in its present form VIII he
submitted to the Illinois Public Service
Commission early next week for It's APP