The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-02-28
WESTERN PACIFIC TO
DEFAULT INTEREST
VIII Not Pay $1.248,1 1875 Due
Tomorrow on &9.925,-
600 Bonds.
RECEIVERSHIP rs LIMITED

The Western Pacific will default to
morrow on the payment OF S,24S.1%
seui-annual interest of its A9.925 .o0t
6 per cent Ast mortgage Dr,da ms
consequenre Of this default IN a receiver
ship unless some plan Of financial ~
adjust1nent In agreed upon by ali IN
terests before rcceiversh4p IA resorted 10.
such a phin had not been agreed on
n lly at the close Of business ycstor-
day. II WAS being worked urcn and
strong interests in the property eS-
pressed the belief that a reidjustmert
without rcrcivership would he possible.
In other responsible quarters there wVus
strong irtiinauon Of doubt tnrt IN -
vampin of the company could De 40
o~omphshed without court procedure.
Thomas l.. Chadbourne, Jr.. personal
attorney for Gourye J. Gould and special
tonne FOR the Denver & 4 Grande
RailruAd, mad tho following state
msnt:
1T has Ooen found Impossible BY tn
Western Pacinc Railway Company or
the Denver and Rio Grande Railroad
Company to meet tho serr annual in
terest uyou t%- former oompanys irv
mortgage bonds falling duo N Monday.
Marrn 1.
Tho board Of directors ~ ehc Den
ven and Rio Grande Railroad Coinrany
has for a number of days been in con-
ference with representative OF The Larry
est bond holding interests. These con
ferences have nov reached a point at
which every one feels confident that a
harmonious outcome is practically ~
sured A concrete rlan - In cour4e ~
preparation and will he announced IA
49, a, q. 49, 1a..vH 4. rs,v~xu.N ht Iii NJ
the interests that have been IN oon-
ference, probably esrly next week.
When asked II a ~rceivership had
been decided upon Nj. Chadbourne ~
fused to answer.
Ono who often sp-aks for important
interests in the road sxid hat the
largest holders OF the securities On
which tho road will default are IN har-
mony with a tentative plan OF read
justment without reccivership that has
been before the boa rfs Of the Western
Pacific and the Denver and Rio Grande
for some time. This calls for a scaling
down OF the $50. 600. 900 bond issue To
half that mount the difference being
made good 90 the holders Of the bonds
in some form OF security not a direct
chargp N the property.
Az a day will intervene before tho
company IL actually IN default, ~ WIS
said. there was stiil time for determine
tion of final action.
The Denver and Flo Grsnde. which
guarantees tho interest and siuking
FUND on the fst mortgage bonds. IL WAS
learned. holds none Of these bonds. Tho
majority ~ held in New York state. -
par cent. in California, a considerably
mount but less Than 20 per cent,
held abroad, and a small percentage ir
81. Louis
The Denver and Rio Crande, "
-z.z --. Ia. -. II
vance, TO the Western Pacific sli. o9o,
095. mainly for interest payments on
the first mortgage bonds, for which th'
Denver and Rio Grande holds the com
pany note. There is due, In addition
from the Western Pacific S5,l:5, 900 fu
interest on the second mortgage honda
which arc held entirely by the Deuv-,
and RIO Grande.
The bankers In the readtuament AT,
general financing plans of the WeYtrrx
Pacific are Blair a. Co. William A Rea
& Co. and William Solomon 4 CO