New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-12-24
TO REORGANIzE
WESTERN PACIFIC
Plan Completed forTaking
Gould Road Out of
ReceiverShip.
SlS,600,000 NEEDED
TO REALIZE SCHEME
Cash To Be Provided by Sale OF
Bonds of a New Oper.
ating Company.

a plan for taking the Western Pa.
cihc Railway out Of receivership was
made public yesterday by the reorgani.
zation committee. of which Alvin W.
Krech, president OF the Equitabls
Trust Company, Is chairman. The
road connects with the Denver 4 Rio
Grande at Salt Lake City. and forms
he last link in the Gould chain from
st. Louis TO the coast.
The estimated cash requirements OF
the plan are SIS 900, OF which So
09S,750 will be used for the acouisi-
ton OF the securities OF non-assent-
ing bondholders, expenses OF reorgani-
zatiou amounting 10 $4,000. 900, for
betterments s2,579,750. and for pur-
chase Of new equipment s3,BI4,00O.
The balance Of sl0506.250 will be APP
piled to the acquisition Of new prop
erty and fer the protection Of claims
against the Denver & Rio Grande,
which owns s50.000,000 OF the West
ern Paclhc's S75.000,000 outstanding
stock.
The cash required is to be provided By
the sale OF bonds Of a new operating
company which is expected to yield Si6,-
100000 Il is expected that by March
l, the receivers will have 100000 ad-
ditional. The operating company will
lie organized under a California chart
or. as well as a holding company 10
hold All the capital stock of the form
er, and TO enforce or otherwise realize
on the claims Of the Wsst tern Pacific
against the Denver g. Rio Grande,
which early In the year failed 10 live
up &c its interest guarantee on the
Western Paclhcs SoO,OO0,000 hrst mort
gage bonds.
Details OF Financing.
n IS expected That after the COM
Pletlon OF the Reorganization the fol-
lowing amounts oi securities will be
outstanding IN The hands Of depoSltors
under The plan: SIO,OO0,000 first mort
gage bonds Oi the operating company.
500 300 900 preferred stock. and s41.-
100000 OF fhC common stock OF the
holding company The authorized issu.
Cl trst mortgage bonds Will be $50
100000 Tho uew operating company
will authorize ~ 100000 per sent
r0D-cumG.auye preferred stock ro-
tcCMaJio at l0J, aud convertible AZ
any '.mc prior % any LAed date tor
rtleuE ti.l INTO common stock, aud
Hi.n SI5.5U0.oo0 Of tbe after class.
IePos!.Ola under the plan VII. be an
tLIel 80 receive Ia exchange .or their
old arst mortgage bonds and their
claims against the Denver a AiO
GIaaGe stOcA 40 ine holding company
either IA connection with OF without
tne purchase o. them of Arst mortgage
bonds OF The operating company upon
tae following basis:
A depositor viii be entitled 20 pur-
chase, at % and accrued interest, new
bonds equal ~ principal amount 10 Az
per cent OF his deposited bonds, and
will receive IN addition preferred stock
Of the holding company 10 an amount
equal to 90 per cent Of the principal
OF the deposited bonds ana common
stock equal TO 30 per cent IL de-
positor does not purchase the new
bonos he will receive in exchange for
his deposited bonds holding company
preferred stock equal to 6O per cent OF
the oid bonds ana common stock equal
20 40 per cent
For Underwriting Syndicate.
Such new bonds as are not purchased
By the depositors are to be taken by an
underwriting syndicate al 81 and ac-
crued interest. 1t will receive $1,000
principal amount of the new bonds;
S125 preferred stock and 5000 Of COM
mon stock OF the holding company for
each 5000 paid by it. The syndicate
will be formed by the Equitable Trust
Company, Blair & Co., William Salo-
mon g. Co. and Z. II. Rollins & Sons,
and will receive a cash commission Of
2 per cent.
Depositors who purchased the new
bonds at the date fixed for the pay
ment Of the first instslment, and who
then paid the entire purchase price,
may borrow from the underwriting
syndicate, through the agent, the
Equitable Trust Company, 80 per cent
of the purchase price, with interest at
per cent. The loan is to be paid one
year from date.
The new company will have 100000
900 first mortgage bonds outstanding,
against S50,00O,000 for the old COM
pany; no second mortgage bonds,
against $25,0O0,000; no unsecured debt,
against $26,s0O,O00. The capital stock
will be the same, the interest charges
will be 100000 a year, against s2,-
100000 for the old company.
The directors Of the new holding
company will have the power 70 en-
force the claims of the old Western
Pacific against the Denver & Rio
Grande.