The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1916-05-18
new FRISCO PLAN
Second Reorganization Scheme
Put Up to Commission.
This Authorizes Capitalization
of Nearly $50 Million.
ASSESSMENT OF S. A SHARE
Estimates by 1924 Earnings
Will Be 20 Million a Year.
Includes Voting Trust Once Re-
jected by Board.
ASSESSMENT OF S. A SHARE

jefferson City, May 1S.-The second
reorganization plan of the St LOUIS
and San Francisco railroad submitted
to the Missouri public service commits
sion today proposes a capitalization
of $249.61S,31s with a provision that
additional securities may be issued
with the consent of the commission.
The first plan, which was rejected by
the commission. called for the issu-
ance of $3I9.00O,O00 in securities.
a hearing on the new plan was
granted today by the commission for
May 81. 1t came to Jefferson City
by mail from a New York law firm
and is the plan, was the first, OF j.
and w. Seligman, and Speyer and
Company, constituting the reorganlZa-
ton committee.
VIII Have Three Million Left.
The plan as submitted to the com
mittee sets forth that the receivers
after paying all operating expenses,
will have the sum of $3,19S,0OO on
hand July 1, 1916. 1t is stated also
that the net fixed earnings are now
$14.163,492, and constitute more than
enough to pay the fixed charge and a
return of more than u per cent upon
the entire capitalization.
BY 1924 the earnings will net $780,
100000 a year and keep up all i'm
provements. The plan provides for a
voting trust practically the same as in
the one first submitted and which was
rejected by the commission. 1t is to
continue for five years and be COM
posed of James w. Lusk, one of the
receiver; Festus j. Wade of St. Louis,
representative of the stockholders. and
Frederick w. Allen. Charles H. Sabin,
James Speyer and Eugene V. Thayer,
all of New York.
Provides for Mortgage Sale.
-
roads shall be sold under foreclosure
of the refunding mortgage bonds,
creditor bills. etc, and successor 10
the old company shall be organized
whenever the reorganization commit
tee shall determine.
The Chicago & Eastern Illinois and
the New Orleans, Texas & Mexico are
to be divorced from the road the
first plan provided. The Kansas City,
Fort Scott & Memphis is to be re-
tanned, and there will be left undis-
turbed securities of the Frisco
amounting to s14,79O,OOO, which CON
stitutes gold interest bearing bonds
falling due within the next few years.
The preferred stock is not to ex-
coed $200,0 100000 at any time and
must never draw more than seven per
cent The exchange of old securities
for new is the same under the first
plan, requiring a deposit of SIS a
share.
French Owners Silent.
The amount to be paid the re-or-
ganizatiOn committee is not fixed but
to be determined by the president OF
the New York Trust company the
Columbia Trust company and the
Equitable Trust company. aIlo fNev
York. 1t is to be charged as a part OF
the reorganization expenses.
The new plan differs from the for
mer it is stated, in the large per cent
of bondhOlders and stockholders who
have assented to it. The French hold
ers of securities, having it is under
stood about 100000 of the road.
securities, have neither assented OIL
objected, the plan states.