Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-05-17
STOCKHOLDERS OPPOSED re
MOVE WILL CARRY coNTRo-
vERsY TO COURT.
OWNERS OF STOCK MEET;
ALIGN FOR CONTEST
committse Of Stockholders Favoring
Financial Reorganization Reports
b Minority Report Against Plan 10 Filed
=. Stockholders Come Together Three
Times, But Reach No Agreement.

Opposition to the plan Of financial
reorganization, that will result in liti-
CATION If the plan is put thru, devel-
oped among stockholders Of the M. &
st. L., who are in annual meeting In
Minneapolis. News from MINI eapolis
indicates that whatever the outcome OF
the meeting the controversy wild prob
ably be taken into court to be settled.
The stockholders came together
Monday, but no action has been taken
by the meeting, which had been ad-
iourned three times up to Tuesday ar
ternoon for the purpose of an align
ment Of proxies and forces. w.,
Rsfinaneing Important Issue.
A refinancing plan OF reorganizati
is probably the most business that will
come before the stockholders meeting
It was said In an authoritative source
that 1t was probable that no action
would be taken at this time with re-
spect to the election Of officers or d.
rectors. ~ t5
So far the meetings have advanced
no further than to receive the report
Of the committee on reorganization
ana a minority lCapoit VI q
ers' committee opposed to the plan OF
refinancing.
. The summary Of the financial reor-
ganization plan Is: ..-.
To take up preferred shares Of val
ued at 800 par, and distribute $ioV
worth Of new preferred for each $loO
of old to those who pay $40 IN cash
per share. s.-
Common stockholders who pardci-
pate in this plan for the preferred Will
receive 800 worth of new common
for a like amount of old. Those VINO
do not Join will receive $22 worth OF
new common.
: The cash assessments asked lor I'M
der this plan are to raise money TO
take up $2,500,000 worth Of per cent
short time notes. due March 1, and
extended to Sept. /: to pay 100000 OIL
current bills; to reduce outstanding
vouchers 100000; to pay syndicate
commissions for putting thru the re-
financing plan. $S50,o0o, and for new
working capital, $5S0.200.
/ Grounds Of Opposition. - e,
. These are the main points OF oppo-
5sition to the plan as outlined by the
opposition. ~ .
objection to an assessment Of $40
a share on stock that at this time has
a. market value OF only So a share.
Dissatisfaction because the heavy
stockholders who are asked to pay up
$50 a share, to raise $4,5OO0OO, with
part OF which to retire S2,5OO,000 OF
short time notes that matured March
1, and were extended to Sept. 1, were
not permitted to participate in new
note issue instead. ''e5
Objection to the payment OF $3S0.e0o
in reorganization fees to financial
firms that have arranged to put the
deal thru. n ..,.@asl
81 lSs Estimates Probable Vote.
This was the lineup Of the stock
holdings as estimated by the opposi71
ton Tuesday afternoon: !
Total Minneapolis & st. Louis stock
outstanding on company's books, 2Ss, :
107 shares. .g>
Total necessary to carry plan thru.
>17sj572 shares. #
Total estimated to be represented at
the meeting by interests favorable to
the plan, $4,000 shares.
Proxies Legality Contested. -
The matter hangs on two important
holdings, the legality Of which. as rep
resented at the meeting Is In question.
The late Edwin Hawley,f who was
president OF the road, had 10000
shares. These 10000 shares are rep
resented by proxies. but are said neveH
to have been properly recorded on the
connpany's transfer books and to be
debarred from voting. There are also
10000 shares Of the estate OF Payson
G. Gates, the voting rights OF which
are objected to on the same ground.