The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-10
ROCK ISLAND DENIED
RECEIVERSHIP PLAN
Proposed Reorganization Said
to Contemplate Nothing
So Drastic.
DETAILS BEFORE MAY 1
Bondholders May BE Asked to
Consent to the Issue Of
More Stock.
DETAILS BEFORE MAY 1

A director and leading interest In she
Rock Island properties said yesterday that
among eight or ten plans under considera-
tlon for the reorganization Of the Chi
cagu Rock island and Pacific Railroad a
recelvership Is not even being discussed
by the directors.
The plan most generally credited in
financial circles rs the one the manage
ment would DC forced TO adopt was the
passing of the dividend on the stock of
the railway, forcing n default In interest
on the Chicago, Rock Island and Pacific
Railroad collateral trust Is, which IL due
May /. This would result In a receiver
snip FOR the railroad. enabling the bond
holders 10 take possession OF their col
lateral, practically the entire capital
sock Of the railway company. They
would thus be IN control OF the property
and a reorganization OF the finances o:
The thres companies could proceed with
the elimination Of the two holding COM
panies as the desired result.
Leaders In the system sad emphat,cally
that q drastic plan OF this kind Is nor BE-
Ing considered. Neither the main princ.-
pies nor the details OF final plan have
boon decided upon. but It ls said that a
plan will be ready Tor submission 10 the
security holders long hefore May /. on
which the Interest on tire collateral trus,
bonds Is due.
The plan receiving most favorable at
teition - based on an effort of the lead
crq In the road TO secure consent from
tho collateral trust 6dnd holders for a
readustment OF the finances OF the three
COMPANIES that will do away with the
holding companies end reduce tho direct
Obligations of tho road. The directors
have been advised by counsel that unani-
nous consent of the holders OF this issue
Is not necessary. but that majority
asserting will give the req iisite authority.
The percentage OF mi Jorty has not been
doermiued upon.
With tho consent OF these security
holders the property IL unlocked from
the present provision On the indenture OF
the collateral trust bond ISSUE. by which the
fundamental property. the railway com
pIuN, Is prevented from issuing NOR.
stock Through the removal OF this
obstacle II viii become possible to pro
vide FOR N. holders OF the common and
preferred stock OF the Rock Island Com
pauy. the top holding concern, q security
IA exchange Tor their own.
Tho Involvement To I've offered 20 the
collateral trust bond holders TO gain their
consent to such Ian has not been de
cidcd upon. Neither has IL been decided
whether the holders of the common and
preferred stocks OF the Rock Island Com
pany will BE- called upon 10 pay an assess
m"nt.
Directors OF the company spoke with
hopefulness Of the situation ana intlnatod
that the low prices TO which the stocks
and bonds have been driven by profess
sionai activities on the exchange were not
justified
Rock Island common and preferred
fell 90 new low records. 10 did the coll
lateral trust - OF the railroad company.
The common dropped 10 So. loss OF
= !rom the preceding close; th1 pre-.
fcrred declined - to los. and the coli
lateral trust ~ -. 10 i"1. on very large
trading