The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1918-04-04
TRACTION
kNENHE EHkN&
FINANCING
DEFINED
Gary & Interurban and East
Chicago Co. Working on
a New Basis.

Definite details or the reorganization
OF the Gary & Interurban traction sys-
tenn have been made public They also
show that two prominent Chicago trac-
ton and public utility men are involved
In the rehabilitation scheme. Samuel In
sui and Brttton l. Budd.
AS exclusively announced in Tus
TINES tho Gary and Interurban railway
ana the East Chicago street Railway
have been transferred 10 a new company
the Gary Street Railway company or
Indiana and the local concern Is also
Identified with the newly Incorporated
Gary street Railway Corporation OF Vir-
ginia.
The plant prepared by the committee
representing under deposit agreement Of
1915 over 9S per cent OF the $1,000 600
First Ref Mtse. s. of 1910. has issued
a plant dated Feb. I. 1918. saying in
substance;
Reorganization committee; Dinner
Beeber. Chairman; William #. Albeit.
Charles a Boody and Mortimer y.
Buckner. with Charles F. Tfaydock. g
Broad St. n y. city and Henry j..
Alker. 705 Land Title Bldg, Phuadel-
phis. ms secretaries Depositarlcs New
York Trust Co, IS broad 81. y. y.
Commonwealth Title. Insurance & Trust
Co. Philadelphia. Counsel. Hornblowel,
Miller. Garrison & Potter. y. Y. aud j.
Levering Jones. Philadelphia.
East Chicago Co. In Deal
After sale at foreclosure the Gary x
Interurhan IT, and the East Chicago
Street ny. have been transferred 70 1
new company named Gary street Ry Co.
The properties in question jucludc main
" (a) the street railway lines on Broad
way, 5th Ave. and 1}th Ave. I'm Gary and
the street railway lines from Gary 20
Hammond. Ind. laggregating tn au
about % rniles). with car barns. sub
stations and equipment. to} ;he lo-miie
street railway extending from said 5lh
Ave line in Cary 70 Indiana Harbor.
Ind territory which il IS believed
viii undergo extensive industrial &C.
relopmcnt New company incorporated
in Indiana Sept IS. 1917.
insult and Budd In Il.
The directors OF the Gary street Ry.
Corporation Of va Will consist or
Samuel Insuu. Britgon J. iBudd, Martin
J. insult. Frank J. Baker, Charles w.
Chase. William T. Abbott and Phillip ,.
Poe.
Calumet Electric Co
Contract with Calumet Electric Co
C;uaranty-Contlngen Right 10 New
Common Stock-This contract dated
Sept. s. 1912, as amended provides that
ia cons Iteration OF $4,000 Ia cash, ana
its guaranty OF the interest upon tie
| aforementioned debeEturcs for period
| Of ave years from oct. ]. 1917. (Which
! guaranty is secured by a deposit Oh
| s125.o0O 1st M bonds or The Calumet
! Electric Co. being one-half Of the pres
! oat outstanding issue) the Calumet
Electric GO shall have an option Tor
five years to redeem or pay az par and
int. ain Of said debentures and thereapon
/ to receive all of the common STOCK ol
I the Virginia company.
( Tho Calumet Electric co. is further 10
! ha,-e a renewal for period of ave years
| Of its present power contract Ter inc
/ furnishing Of power 10 tho properties
| and in the meantime, VIII control inc
! MANAGEMENT through voting tsnS'
aereer7ont under which all Of the COM
I mon stock OF the Virginia company IS &c
ba deposited with three voting trustees
] ri whom one shall b. "A representative
1 Of the Gary & lnterurban r. GO. BOND
/ holders and the other two shall be rep
! resentatives Of the Calumet Electric CO
\ The contract also provides that bonds OF
I the new company up 70 $4,000 shall be
/ deposited with the court 70 secure the
/ payment of the claim Of t4le Calume;
I company for power furnished the old
con1pany II that claim shall be ultimate