New-York tribune., 1921-11-22
l8 Bond Issues
Cut to Two i'm
New Katy Plan
Final Agreement OH Read.
justment of Complicated.
Financial Structure of
Railroad i'm Receivership
Debt and Interest Lower
flush to Participate in
Underwriting of Assess
ments New Stock Non-Par

ments New Stock Non-Par
FirAl agreement on a reimbursement
the highly complicated financial
<truoture of the Missouri, Kansas &
ieNas Railway, in receivership since
'eptember. 1916, was announced yes
crday by the reorganization managers,
y w. Seligman & Co. and Hallgar-
en- q Co. The reorganization plan
Nl,oces eighteen existing bond issues
) two, except to the extent that hold
r. $ CT bonds issued under the old first
4ortgages, which are not foreciosed
o not elect to deposit their securities
ndeS the plan.
Speyer T. Co., who with Hallgarten
Co, Seligman & Co. and the Eouit-
Sic Trust Company have arranged to
nderwrite the stockholders assess
lent OF $50 on the $1S,O00,00O pre-
rred and $25 a share on the S63 ,2a3,-
% common, announced that they had
ready been overwhelmed with appl-
atoms for participation in the un-
erwriting syndicate. The syndicate
for s1s,40o ,ooo the amount to he
aised by the assessment for reorgani-
alton purposes.
Features of Plan
IN "dultlon 60 the assessment the
outstanding features Of the plan in
,lude:
Reduction of the fixed interest bear
ng debt Of the railroad from s14e.-
543,142 60 S10O,S20,s1S and the fixed
interest charges, including sinking
und payments, from $7429,376 to
'4,9l', ~. In addition the new COM
'any is to have $57 SOC, 900 convertible
per cent adjustment mortgage bonds
Gearing a contingent interest charge of
1878, 1000, cumulative from january i
925
The total capitalization of the old
'ompany, including stocks and bonds
mounting to S248,095 900, is to be re-
olaced by the new company's bonds and
referred stock, aggregating s1S2,32O.-
100. and 1876 shares Of common
stock without par value
~ the new money to be raised by the
'tock assessment s4,o42, 900 is to be
ised TO pay off receivers certificates
9nd bank loans, s1,275,000 to paw de-
erred interest under the plan.
Sl'0oo,000 to meet next years equip
ment trust maturities, s4,OOO,0o0 to
provide the new company with work
.ag balance, and ss,1o3 900 is reserved
io1 addltlcns and betterments and the
expenses of reorganization.
The two bond issues of the new COM
2any are to consist of prior lien mort
cage bonds, limited to S25O.OOO 600 at
any one time outstanding. and adjust
ment mortgage bonds, Of which the
Sotal authorized is sl0o. 100000 Pres
entity jssuable under the adjustment
mortgage are the following: In respect
OF existing securities dealt with under
the plan for settlement of secured
claims, or for other reorganization pur-
poses, $51 1913, 1850; to be offered to
stockholders, $5,526,244.
Bonds TO BE Issued
Bonds to be issued under the prior
lien mortgage are: Series A, s per
cent forty-year redeemable at 1O5 and
interest, $52,942,752; Series B. 4 per
cent forty-year, redeemable at par and
interest, $27 ,236,000; Series C, 6 per
cent ten-year redeemable at 1O21s and
interest, $12,994,570. Additional bonds
under this mortgage may be issued to
the extent that the additions and bet
terments made on the system during
Federal control may be funded or other
settlement made with the Director Gen
eral. The receiver states the amount
of such additions and betterments is in
the neighborhood Of $8,O00,O00. Such
additional bonds would presumably be
of Series C.
Preferred stock is to be authorized
to the amount of $500, 200, 900, of which
S24,500,000 is issuable for reorganiza-
tion purposes as Series A, bearing Z
per cent interest cumulative from and
after January 1, 1928, and If allowed by
law will be made redeemable in whole
or in part at $110 share.
Common stocks is authorized TO the
amount of 100000 shares without
M inn l..
shares are issuable under the plan for
exchange of securities or other reor-
ganization purposes, and 762 will be
offered to stockholders under the plan
Holders of the existing preferred
stock, on payment Of $50 share are to
receive per share $14 in ten-year prior
lien mortgage per cent bonds, Sc in
adjustment mortgage s per cent bonds,
and one share of new common stock.
Holders Of the existing common stock,
on payment of $25 share, are to re-
ceivc per share $17.5O in tcn-year prior
lien per cent bonds, $3.50 in adjust
ment mortgage per cent bonds and
one share of new common stock.
New Arrangement
For each $1,000 of principal and in
terest accrued on existing mortgages
and notes the plan offers new securi-
ties and cash as follows:
MISSOURI, KANSAS 4 TEXAS RAIL
WAY COMPANY
First mortgage 4 per cent bonds-&5te
prior lien mortgage per cent bonds, $500
prior lien mortgage per cent bonds,
$23.33 cash.
Second mortgage 4 per cont bonds
$l,19250 adjustment mortgage per cent
bonds. $64l6 preferred stock
First and refunding mortgage per cent
bonds-S500 prior lien mortgage per cent
bonds, $3.50 prior lien mortgage per cont
bonds. $503.33 adjustment mortgage Per
cent bonds
General mortgage Az per cent sinking
fund bonds-$s5o prior lien mortgage &
per cent bonds, $3.50 prior lien mortgage
gage per cent bonds S71937 preferred
stock
Two-ycar secured notes--$35o prior lien
mortgage per cent bonds. $535 adjust
ment mortgage s per cent bonds, sS26 pre-
ferred stock.
First mortgage extension per cent
bonds-$b00 adjustment nortgaFe per
cent bonds, $866.67 preferred stock. l.sssT
shares common stock.
ST. Louis division frat mortgage refund
ing per cent bonds--$250 adjustment
mortgage 5 per cent bonds $3.50 preferred
stock. rs shares common stock.
THE KANSAS CITY & PACIFIC RAIL
ROAD COMPANY
First mortgage per cent bonds-sHoo
prior lien mortgage per cent bonds, $500
prior lien mortgage per cent bonds
1857 cash.
MISSOURI. KANSAS e. OKLAHOMA
RAILROAD COMPANY