Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-01-19
MINNEAPOLIS ST. LOUIS & CANA
DIAN SAID TO BE NEW NAME
OF COMPANY.
REFiNANcING TO TAKE
UP sHoRT-TIME NOTES
Two Million, Five Hundred Thousand
:. in Notes Due Feb. I, il Is Said, and
They Will Be Cared For Under Pres
ident Erh's Plan as Credited in New
York.

That the Minneapolis & ST. Louis
Railroad Company is soon to be reor-
ganized. and will appear under a new
name, and that the proposed plan in
cludes the refinancing of the company
to take up s2.5o0,00O in short time
notes due Feb. /, are statements cred
tied in New York, according to the
Minneapolis Journal of Tuesday even
ing.
The Journal prints the following
story concerning the proposed reor-
ganiZation:
THE Minneapolis e. St. Louis Rail-
road Company will be financially reor-
gaHized and will be known as the
Minneapolis. ST. Louis & Canadian
after Feb 1, if a plan, the details of
which were completed today in New
York. goes thru. If the plan does not
go thru, other means must be found
for the payment of retnancing OF
s2,5000o0 of short-term notes that will
be due Feb. 1.
Newman Erh Believes Author.
President Newman Erb is credited
in New York reports with having
worked out a plan by which the Min
neapolis, st. Louis & Canadian Rail
way Company will take over the entire
Minneapolis & st. Louis property.
New Company Already Formed.
In 1911, after he had succeeded Ed
win Hawley as president of the Mime
apolis & ST. Louis. Mr. Erb visited
Minneapolis and announced that there
were plans in the working out stage
fr,~ ,h
to Canada, there to connect with the
Grand Trunk or Canadian Northern
road. No such line ever was built or
started. But the Minneapolis, st. Louis
& Canadian Railway Company was in.
corporated in South Dakota.
- Exchange Of Stock Arranged.
Tt is this corporation that, under
the proposed plan, will take over the
entire Minneapolis & st. Louis prop
erty. All the existing Minneapolis g.
st. Louis preferred and common stock
Is to be exchanged for AiHneap polls. St.
Louis & Canadian stock in the basis
of twenty shares Of preferred for thir-
teen shares in the new company and
twenty shares of common for nine
shares in the new company. But the
plan involves an assessment equal to
n.
IF the plan goes thru. the company
will notponly receive sufficient cash to
take care of the maturing s2.500,D00 of
short-time notes. but practically as
much more cash for hetterment pur-
poses and the addition of rolling stock
that is much needed.
Discussed in New York.
Vice President C. W. Huntington,
of the company, who is the ranking
officer in the west, said today that
when he was In New York last week
the matter of what to do about the
$500, 900 Of notes that will be due Feb.
l was under discussion.
Notes Will Be Met.
These notes will be taken care Of
Mr.. Huntington said. 7 do not know
the details of the plan. But If 1t works
out along lines discussed in the eas:.
it will mean that the company can
meet its most pressing Immediate obi
cations and have sufficient money for
other needs.
Earnings Show Increase.
The company's business has been
good, and its earnings IN the recent
PAST have made the best showing at
any time since its organization. 1t is
a good property, handicapped by some
obligations that need to be cleared up
and by the need of cash to add to
equipment
Extension Regarded Probable.
THAT the Minneapolis & st. Louis
will avoid receivership by the. pro-
posed plan, and that the first an
nouncement probably will be that the
notes have been extended for six
months pending the payment by stock
holders of their assessments, are ex-
pected developments"