The Bridgeport evening farmer., 1914-02-21
IN FINANCIAL CIRCLES

New York, Feb. 21--It is generally believed in Wall Street that announce ment will be made within the next few days regarding Rock Islands plan for reorganization. Interests close ly allied with the management say, however, that so many difficulties pre- sent themselves in working out the plan that it may be impossible to make it public before the middle of next week It has been learned that one plan by which the company hopes to extricate itself from its financial difficulties involves an arrangement under which holders of collateral trust per cent. bonds of the railroad com pany will take in lieu of the stock which underIies the bonds one-half issue of the railway company to be created, and the remaining half in the present railway company which shall be made common.
 The greater activity and strength displayed by New York Centra1-Lake Shore collateral trust 3 1-2's is taken to mean that holders of a sufficient number of these bonds are ready to consent to the merger of the Lake Shore with New York Central This step will allow the consolidation plan of the New York Central system to. be put into effect. At the last report consents from less than $4, 00O, 900 of the bonds were necessary to make up the required 75 per cent. of the total $o0, 57s, 400 bonds outstanding. As the offer made by New York Central to the collateral bond holders of a per cent mortgage bond in exchange for their 3 1-2 per cent. securities is linn ited to those who assent to the con solidation plans and as the company reserves the right to withdraw the offer after holders of 75 per cent. Of tie bonds have consented, the recent activity may possibly be due to the individuals who believe the eonso1f- dation plan is going through and wish to participate in the exchange offer
 Fifty of the more important railroad systems operating in all sections of the country made a rather unpromis= ing showing in the matter of net earnings in December. The collective gposs showed a decrease Of little less than per cent. as compared with the corresponding month a. year ago and net earnings decreased almost 19 per cent. Compared with November the decrease in gross was a little larger, but the net return made trfh1rg gain.
 The Standard oil Go. of Ohio, has declared an extra. dividend of 8 a share in addition to 9 regular quar- terly dividend Of s. The last dividend, declared November 1, was s3 regular and g extra
 Cofncident with the announcement that the Interstate Commerce Com mission win expedite hearings on the eastern railroad rate increase mat ter, there has developed a broader inquiry for railroad equipment espec- ially on the part of the lines concern ed in the application. The New York Central, for instance. is inquiring for 3,eOo freight cars and the total mum Der of cars for which orders were ac- tpa1ly placed by various railroads in the past week is about 2,500.
 Tentative plans for the reorganixa- ton of the Wabash Railroad have been drawn up, and if finally agreed on, will be presented for approval shortly. Assessments of $20 per share on the company'E preferred and com mon stock are proposed while proposed issuance of new securities will provide about $1. .500, GOO cash. A total of $25.- 000, GOO is needed but the balance will be provided for through sale of bonds under a new mortgage.
 Southern Railway Co. has sold $10.- O00, 600 5 per cent. three-year notes, to complete improvements.