The sun., 1918-09-20
CO WI. RAIL NOTES
WILL Be EXTENDED
Bankers Syndicate Offers
Holders Opportunity on Z 10
Per Cent. Basis.
ONE YEAR TERN ASKED
Arrangement Intended TO
: Clear Up Default of Pay.
ment Due Sept. /.
NE YEAR TERN ASKED

Owners Of the s15,oOo,ooo OF Cbcas,
and Western Indiana Railroad Connarr
one year 6 per cent. notes, which ,,r
due September last, but which NAV.
not paid. are being offered an oppo,.
tunity to extend the securities for m.
year on the basis of ~ per cent rbi,
offer Is being made by j p Morgan
Co.. the First National Bank, Natlop,,
City Company and Harris. Forbes & Co
the group of bankers that placed tho
securities with investors a year AGO
and Is being made on behalf OF the rail-
road company. 1t reflects change o,
terms on the part OF the Railroad Adj.
ministration. which has assented to tina
present Offer
The Railroad Administration Offered
the bankers a commission of l., of
per cent. for their work in endeavor,r
to induce the noteholders TO subscrib,
but they refused TO accept any com.
pensation, believing that the Il of
per cent. should go. to the benefit Of The
noteholders.
The notice mailed 10 notehoders max.
Ing the offer of extension reads as fol.
lows:
with regard to the Chicago and
Western Indiana Railroad Company one
year 6 per cent. notes which matured
on September / and we're not paid, wa
have received advices from John Shelton
Williams. Director of the Division OF
Finance. Railroad Administration, who
states The Director-General would be
willing to enter into contract with tho
Chicago and Western Indiana Company
whereby the standard rental TO be paid
during the period of Government control
shall provide sum OF money sufficient
to pay all present fixed charges and
taxes, including per cent per annum
on this issue of ST. 200. 900 OF notes
Bankers Oner Proposition.
an view of this assurance from the
Railroad Administration of the income
to be received by the Chicago and West
ern Indiana under the Government Rail-
road Control bill, we have been requested
by the company, with the assent Of the
Railroad Administration, to ask the note
holders to extend their notes for one
year. at 6 per cent. with the present
collateral remaining unchanged, upon
payment for extension OF compensation
of / Il per cent. of the principal amount
of notes extended. The investment yield
on the extended notes would thus be
slightly over ~ per cent
Holders Of the above notes are there
fore requested to present their notes
at the Office of J. p. Morgan & Co, %
Wall street, New York. receiving al the
time of deposit receipt, which, when
a sufficient amount Of notes has been
deposited and the plan has been declared
operative, will be exchangeable for ex-
tended notes, the noteholders receiving
at the time OF exchange payment Of tho
coupon due September !. 1918. and the
amount of compensation mentioned
above, viz, $3.50 per $1,000 note.
THE undersigned are acting in this
matter without compensation and rec
ommend your acceptance of tho above
ding this situation"
Controversy Over Notes.
These notes have been the subject OF
much correspondence both by telegraph
and mail between J. =. Morgan & 90.
and Director OF Finance Williams the
last two weeks. Director Williams at
first intimated that the bankers were
responsible for the fact that no arrange
ments were made for providing for the
notes at maturity, but the bankers de-
clared they started preparations months
ago. Director Williams also contendei
that a proposition made by the bankers
to finance the extension OF the notes a.
a cost of approximately 10 per CENT g
the railroad company was eXorbitant
but the bankers expressed II BELIEF that
1t probably could not be undertaken fo'
less by banking houses in view OF the
high rates being demanded for capita
Director Williams proposed that ths
notes be extended on n 6 per cent bass
and added that the Railroad Admirstra-
tion would enter into a contract w!th tho
railroad company whereby the STANDARD
rental to be paid the company during
Government control would he SUN lent
to pay all fixed charges and taxes plus
the per cent per annum on the SlI-
100000 OF notes. Yesterday. hoWevc"
was the first time the bankers considered
they had received a definite offer ~ 50
ahead.
j. i. Morgan & Co. charged that n
rector Williams in publishing soaIe o,
the correspondence had failed 10 iSsls
important kilograms that passed between
the parties. In answering this charge
Director Williams issued for publication
additional kilograms, but J. L. Morgan
& Co. announced "A short statement Say
Ing that Director Williams still neglected
TO publish some of the kilograms since
Morgan & Co.'S last reply nothing had
been Issued relative 10 the defaTilte. note