The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-06-18
PRESS WAY TO SAVE
GOULD TER MINAL
Plan TO Reorganize Wabash
Pittsburg Co. Pleases
Chief Interests.
MAY END RECEIVERSHIP

The wabash Pittsburg Terminal Rail-
way Company. organized more than ten
years ago to be the connecting link in
the then proposed Gould tr~anscontinental
railway system, is about to be taken
out Of r%eceivership after more than
seven wears in the courts. A plan OF
reorganization. solving one OF the most
intricate problems OF railway corpora
ton readjustment. has been drawn up
and informally agreed upon by leading
security interests. 1t Is believed that
the plan will be formally ratified soon.
The plan calls for an assessment Of
$500 on each $1,000 first mortgage bond
In the issue OF $40, 1886 900. Bondholders
who pay the assessment will receive
new preferred stock TO the amount OF
their payments. They will also receive
new common stock In a proportion
which will give the entire amount OF
common issued to the subscribing bond
holders. The ~bondholders will thus be
In control of the ~reorganized property.
Nothing TO GO 10 stock.
The present stock of the Wabash
Pfttsburg company. amounting to s10,-
900, 900. all owned ny the Wabash Rail-
road. will get nothing In the reorgani-
cation. All bonded Indebtedness,
amounting to about $50. 900. 900 first and
second mortgage bonds, will be wiped
out, with the exception OF about $1,000
900 Of underylying bonds. The annual
fixed charges Of the property will thus be
reduced by approximately s?.b0O,ooo.
Il has not yet been definitely de-
cided what the SEQ. 900. 900 second mort
gage income bondholders will receive In
the reorganization, though 1t Is prac-
ticaiiy assured that they will be given
an opportunity to participate.
The 81 per cent. stock ownership OF
the Wheeling and Lake Erie Railroad.
which In held by tho Wabash Pittsburg
company. will be divorced from the new
Terminal 1t IL understood
that there may be an arrangement for
the turning over of this asset of the
Terminal ompan to the subscribing
bondholders.
II Is understood that the Wheeling
and Lake Erie will not be recognized
for some time. probably not until the
fan. Its future at present Is not being
worked out by the Wabash Pittsburg re-
organizers.
Will ktalDS [UsVVVsvVV ."
The plan for the Terminal company
will raise So. 900. 900 In cash. OF this
mount, II is proposed to spend $2,395.-
500 to pay Off the outstanding re-
ceivers' certificates. This feature of the
plan is being objected to by some bond
holders. They maintain that the Guar
anty Trust Company and other holders
OF the certificates should be paid In
new preferred and common stock In
stead OF cash. The answer Of the hold
ers OF receivers certificates Is that the
certificates come ahead of the bonds In
a claim on the property. as the money
thus raised made II possible TO con-
tinue operation.
Another part OF the $4,000, 900 will he
devoted TO the repurchase Of the securi-
ties OF the Pittsburg Terminal Railroad
and Coal Company. an integral part OF
the terminal company system. which
were sold at the beginning OF the year
an collateral under "A $4,000, 900 note
o. the Wabash Railroad. The balance
OF the cash raised will be used as work
ing capital.
The plan will not he underwritten,
The bad showing made by the property
In the past year Is not accepted by the
reorganizers as n fair indication of what
Il will be able to do after the %reorgani-
xation. The lake coal trade. upon which
the system depends very heavily for
trafhc, was greatly deranged during the
year. The confidence is expressed that
under more normal conditions of trade
the road will be able to take care OF
itself.