The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1916-08-17
SAMUEL insult HEADS BOARD
Company Plans to Issue S1o,00o,oo In
First Mortgage Bonds and Plans to
Develope Line and Make It of Greater
Usefulness to North Shore.

The official statement of the re-
organization of the Chicago and
Milwaukee Electric Railway Company
is given out by the new officers of
the company today. The formal state
ment is as follows:
After eight years of litigation, re-
organization of the financial affairs of
the Chicago and Milwaukee Electric
Railroad has been completed, and ex-
tensive improvements, including direct
entrance to. the heart of Chicago, are
contemplated by the new management.
The recognized road will be known
hereafter as the Chicago, North Shore
and Milwaukee Railroad. Samuel In
sull will be directing chief of the new
interurban, and Britain I. Budd will
assume the presidency and have charge
CT the operation.
Three voting trustees for the new
property have been chosen, as follows:
George M. Reynolds, president of the
Continental and Commercial National
Bank; Samuel insult and r. Floyd
Clinch. The officers and directors
Of the new road will be: Samuel Insult,
chairman of the board; Britain I.
Budd, president; R. Floyd Clinch, vice
president. Board of directors, Samuel
insult, R. Floyd Clinch, Britain I.
Budd, III. L. Stuart, John R. Thompson,
lei. S. Osler and E. A. Shedd.
New capital to the extent of
$3,620,000 in bonds and 100000 in
one, two and three year notes will be
issued Immediately.
AS the territory along the north
shore is developing rapidly, it will be
the aim of the new management to
improve the service and make better
ments in roadbed and equipment to
keep pace with such development. The
new officers expect to give much per-
sonal attention to rehabilitating the
road
While the interurban line has run
direct to the heart Of Milwaukee for
number Of years, its southern ter
mlnum has been in Evanston. Nego-
tlations are now under way to bring
the cars down to the heart of Chicago:
and when these arrangements have
been completed, it is anticipated that
the earning capacity of the company
will be greatly increased.
The plan of reorganization contem-
plates the issuance of the following
securities:
An authorized issue of $10,000,000
first mortage, 20-year, 500 bonds, which
will be first lien on the entire prop
erty; but no bonds can be issued in
excess of 100000, except for addi-
tlonal property acquired by the new
company, at not more than eighty-fve
per cent, $500 of the cost or fair
value thereof.
Of the first $5,0oO,OOo bonds
$3,620,000 will be issued Immediately
and, in addition, 100000 one, two
and three year notes (callable at par
on any interest date, and to provide
for the retirement of which $4,000
first mortgage bonds are reserved),
making the present issue $4,060,0O0,
and the remaining $4,000 will be
issued for improvements and better
ments as needed from time to time.
The capital stock will be 100000,
which will be held by trustees and
against which participation certificates,
without par value, will be issued.
These certificates will be issued in
three classes: The first designated H.
linois participation certificates of which
there will be an authorized issue of
$4,000, bearing interest at the rate of
SIS. on each certificate per annum, Gu
mulative if earned after January LIST,
1918; the dividend on these certificates
having priority over the other partici-
patton certifcation: The second desig-
mated Wisconsin participation certi-
fcates of which there will be an
authorized issue of $4,000, bearing in
terest at the rate of SIS on each GER
tifcate per annum, cumulative if earn
ed after January 1st,g 1918; The third
designated common participation certi-
fcates of which there will be an
authorized issue of $4,000.
The present Illinois bondholders will
receive ten Illinois participation GER
tifcates for the par value Of each
old Illinois bond.
The present Wisconsin bondholders
will receive five Wisconsin participa-
ton certificates and in addition there
to five common participation certi
fcates for the par value of each old
Wisconsin bond.
It is expected that distribution of
the new securities will be made in
about sixty days."