The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1915-07-16
Business and Finance

holders, while naturally the stockhold-
ers will have to bear the heaviest bur-
dens OF the reorganization program.
The plan makes radical cut in the
company's capitalization, converting a
large share of what have heretofore
been liked interest obligations into
preferred stock or income bonds. The
! Missouri Pacific stock has been on the
gradual decline for a year or more,
the weakness becoming more pro-
nounced when it became inevitable
that cash assessment would be paid
in on the stock in any plan that would
successfully rehabilitate the property.
This assessment is to be $50 a share.
and IT is counted upon to supply SAL
42O,OOO, or all of the new cash needed
to make the readjustment effective.
The contribution of the other security
holders is to be made through the
surrender of old for new securities.
The essential feature of the proposed
readjustment is the removal of the
necessity for the new company to
carry such heavy interest load as to
make it impossible to devote any of
the earnings to Improvements. If the
plan is adopted by the security hold
ers the reorganized company will start
off with a reduction of SOC, 552,O0 in
fixed Understanding obligations. This
will mean a difference of $35, $4,000
per annum in the sum which the road
will have to earn to avoid a default.
The plan contemplates the creation
of three new classes of securities:
New first and refunding mortgage S
per cent bonds, of which $46.o23OOO
will be issued at the outset; new gen
eral mortgage per cent bonds of
which $44,399, 900 will be issued: lew
per cent preferred stock or income
bonds bearing the same rate, of which
$/o,/5l,O O0 will be put out and new
common stock to the mount now
outstanding. This plan will finally re-
move the road from the domination Of
the Gould interests and place it in
position where it will eventually work
out its own salvation to the satisfac-
ton of its stockholders. Meanwhile
the policy is watchful waiting.
Business.
General business maintains a some.
what one-sided condition, the greatest
activity being in the manufacture of
foreign necessities. 1t is increasingly
evident however, that whatever M
petus the demand for war materials
has given 20 those lines of business
directly in a position to benefit from
such demand the stimulation has been
spread by natural process } industries
engaged in supplying dom
este wants. Bank clear,nGs ior Nav
make the best showing for any mouth
since the war began. Compared with
the same month Of last year they
showed an increase Of i'll per cent,
but this does not indE:.. = a return 10
normal conditions, for it must be re-
that in May of last year the |
majority of al cities for which clear !
Ings were reported made an unfavor-
able COMPARISON with The same month |
Of 1918.
Unem1 1yInent which come months |
ago was i considerable pr uInrirons |
has gradually ceased t. be 4 dtStrub- |
ng factor, many lines Of manufacture
low reporting an actual scarcity of |
abor. The sudden and unexpected de-
uge of orders from Europe has gen
rally taxed facilities of concerns
equipped for the production of war
and reports of orders plac-
ID with concerns, which by the ma |,
ure of the goods ordinarily produced
we're least expected to participate in
he distribution of such business, are
~ no means uncommon. In the bas-