The New York herald., 1921-11-22
KATY PLAN CUTS
DOWN BOND ISSUES
Reduces Number to Two and
Assesses Preferred and
Common Holders.
$1s,42o,oOo Is PROVIDED
Banking Syndicate to Under
write Stockholders Par
ticipation in Scheme.

The reorganization managers of the
Missouri. Kansas and Texas Railway
Company announced yesterday e. rlan
for removing that property from the
receivership under which It has been op-
Grated since September. 1915. 1t will
reduce its eighteen existing bond issues
to two and provide the company with
s1S,420,0O0 in new cash through assess
ments on its preferred and common
stocks. The roads stockholders partici-
patton In the plan, which has been ac-
cepted by its directors and by commit
tees which have on deposit $4,000, 900
out Of a total of $89,000,000 bonds repre-
sented. is to be underwritten by q syn
Glcate organized by Speyer & Co.. j. &
w. Seligrnan & Co.. Hallgarten & Co.,
and the Equitable Trust Company. The
plan will be declared operative when. In
the Judgment of the reorganization man
ayers. a sufficient amount of securities
has been deposited. Its outstanding
features include:
~ Reduction Of the fixed interest bear
to $100. 800 .913, and of the fixed interest
charges Uncluding sinking fund pay
ments) from $7.429.3 to $4.917.717 In
addition the new company Is to have
$57,5O0.cr0 per cent. convertible adjust
ment mortgage bonds bearing contin-
gent interest charge of $2 900, cumula-
tive from January 1, 1925.
(2) Total capitalization OF the old COM
pany. stocks and bonds. of SPAS 095. 900 to
be replaced by the new company's bonds
320, 900 and 7S3.155 shares of its common
stock without par value.
90 Assessments of $40 share on the
$13,000,00O old preferred and SO share
on the $63 .2s3 ,257 old common to provide
S1S.420.00O new cash for reorganization
purposes. Of which "a. o42. 900 Is to be used
bank loans, 81 $4,000 to pay deferred in
terest under the plan, 1000. 900 to meet
next years equipment trust maturities.
1000, 600 to provide the new company
with working balance and So. 103 900 Is
reserved for additions and betterments
and the expenses Of reorganization.
The preparation Of the plan necessi-
tated dealing with more numerous inter-
ests than any reorganization oince that
Of the Southern Railway in 1894. Small
issues aggregating $7.247,951 are left un-
disturbed. Except in so far as holders
Of bonds issued under the old first mort
cages, which are not foreclosed. do not
elect to deposit them under tho plan
the new prior lien bonds will be substan-
TALLY first mortgage on the entire sys-
tenn Of 3,143 miles or road, including
terminals and rolling stock.
terest accrued on existing securities the
plan offers new securities and cash as fol-
lows
Missouri, Kansas and Texas.
First Mortgage 1eS Bonds-S500 prior
lien mortgage SO bonds, $500 prior lien
mortgage 40 bonds, $23.33 cash.
Second Mortgage 4% Bonds-$1. .1e2.50
adjustment mortgage go bonds. $64.16
preferred stock.
First and Refunding Mortgage 40 Bonds
$500 prior lien mortgage $50 bonds. $3.50
prior lien mortgage 4e5 bonds, $503.33 ad-
5ustment mortgage so bonds.
General Mortgage 41sqo Sinking Fund
Bonds--$250 prior lien mortgage $50 bonds.
$3.50 prior lien mortgage 40 bonds. 1913
adjustment mortgage so bonds, $7l9.37
preferred stock.
Two-year Secured Notes-s35o prior lien
mortgage $50 bonds. $525 adjustment MOTT
gage SO bonds, $525 preferred stock.
First mortgage Extension $50 bonds
yooo adjustment mortgage beo bonds.
$666.61 preferred stock, 1.6667 shares
common stock.
st. Louis Division First Mortgage Re-
funding 40 Bonds-s25o adjustment mort
go shares common stock.
Kansas City and Pacific.
First Mortgage 40 Bonds-s50O prior
lien mortgage $50 bonds. $500 prior lien
mortgage 40 bonds. S36.67 cash.
Missouri. Kansas and Oklahoma.
First Mortgage 5qS Bonds-sl 900 prior
lien mortgage 80 bonds. 1888 cash.
First mortgage $50 Bonds--s750 prior
lien motgage $50 bonds. S537.5O ADJUST
ment mortgage $50 bonds.
Second Mortgage go Bonds-$50O ad-
;ustment mortgage ,6 SSs bonds 1856 25 pre-
stock.
Missouri, Kansas and Texas Of Texas.
First Mortgage SO Bonds-$750 prior
lien mortgage go bonds. $541.G7 adjust
Inent mortgage SO bonds.
Dallas and Waco.
First Mortgage $50 bonds-s1 900 prior
Lien mortgage 5eS bonds. S33 .sS cash.
Wichita FAILS and Northwestern.
First Mortgage SO Bonds-$1 ZOO prior
lien mortgage 5eo bonds.
First Lien Collateral Trust 59 Bonds
$500 prior lien mortgage SO bonds, $675
adjustment mortgage $50 bonds.
First and Refunding Mortgage 5eo Bonds
..S25o prior Hen mortgage 5% bonds.
$1S7.50 preferred stock.
Southwestern Coal and Improvement.
First Mortgage 6e6 trust bonds-s5Oo
prior lien mortgage 5q6 bonds, $500 ad-
Justment mortgage 5eo bonds.
Boonvillc Railroad Bridge Company.
First Mortgage deo Bonds-s1 900 prior
lien mortgage bonds, 40, $26.G7 cash.
Holders of the existing preferred stock,
on payment of $50 share, of which So
is to be paid at time of depositing the
old stock and the remainder In three
equal instruments at intervals OF not
less than so days, are to receive per
share $f4 In 10 year prior lien mortgage
SO bonds, SO I'm adjustment mortgage
$50 bonds and one share of new com
mon stock.
Holders OF existing common stock. on
payment OF $25 share. of which SO
is to be paid at time of deposting stock
and the balance in three equal install
ments at intervals of not less than 80
days, are to receive per share $3.50
in 10 year prior lien Geo bonds, $3.50 in
adjustment mortgage so bonds and one
sha.o of new common stock.
1t will be observed that tho plan offers
holders OF the old first IS an increase In
their coupon interest rate of one-half of
1 per cent. besides a 40 year maturity
instead OF the present 1000 maturity, which
together give an additional income yield
of over &e5. OF this issue S39. .999. 500
are outstanding. Five issues aggregating
S12.sS9.00O OF existing bonds receive
1905 in fixed interest obligations of the
new company. With these exceptions the
principal of existing issues is largely
scaled down IN the new bonds bearing
fixed interest.
Deposits of securities for the purpose OF
participating in the reorganization plan
must be made with the various respective
depositaries named in the plan on or be-
foro January Z, 1922. The reorganization
managers In their absolute discretion may
determine whether when n sufficient
classes shall have been deposited to rem
der II advisable to declare the plan OPP
erative.
r-i,a nrior Hon mort eare bonds will he