The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-11-26
PLAN new "KATY"
Missouri, Kansas & Texas Rail-
way VIII ReOrganize.
Company Has Been in Receiv-
er's Hands Since 1915.

Announcement was made this week
that the organization managers of the
Missouri, Kansas & Texas Railway
company have completed a definite plan
for the reorganization of that railroad
which has been accepted by the direc-
tors of the company and the eighteen
committees representing securities
dealt with under the plan. The stock
holders participation in the plan is t.
be underwritten by a syndicate which
a number of interests have undertaken
TO organize, and the plan is TO be De
Clared operative by the reorganization
managers when in their judgment
sufficient amount Of securities mas
been deposited
Preparation OF this plan has prob
ably involved dealing with more num-
erous interests than any reorganiza-
ton since that of the Southern rail-
way in 1894. The road popularity
known as the Katy" consists of l.
$50 miles of main line. and 1880 miles
of branches, a total of lab miles Of
road, exclusive of 229 miles used
under trackage agreements. 1t mas
been in the receivership since Sep
TENDER, 1915, in which year the old
company failed in it's efforts to re-
fund S19,0OO,000 short term notes. al
tho it had continuously earned It's
fixed charges Active plans for reor-
war and federal control.
What the Plan includes.
Outstanding features of the plan in
clude the following:
90 Reduction of the fixed interest
bearing debt of the railroad from
$146,543,142 to S100,320.915, and of
the fixed interest charges Including
sinking fund payments) from S7,429,-
376 to S4,917,717. In addition, the
5 per cent convertible adjustment
mortgage bonds bearing contingent
interest charge of s2.S75,0O0, cumu-
lative from January l, 1928.
(2)' Total capitalization of the old
company. stocks and bonds, of SPAS
O95.00O to be replaced by the new
companys bonds and preferred stock
aggrcgating $1S2,32O,00 and 1888. 155
shares of its common stock without
par value.
go Assessments of $40 per share
on the $13, 100000 old preferred and
$50 per share on the $6S.2S3.257 old
common to provide $1S.420,00O new
cash for reorganization purposes. of
which S4,042,000 is to be used to pay
OF receive S certificates and bank
loans, S1.275.00O to pay deferred inter-
est under the plan. $1,000, 600 to meet
next years Iuipment trust maturities,
S4,000,000 to provide the new COM
pany with working balance and S.
100000 is reserved for additions and
betterments. and the expenses of re-
organization.
Receiver Makes Statement.
In a letter to the reorganization
managers the receiver. c. L. Schaff,
calls attention TO the fact that during
the receivership capital expenditures
on the propert. have amounted to
s17 100000 on roadway and structures
and 81, 100000 on new equipment and
improvements to existing equipment. a
total of $29,000,000. In addition, op-
Grating expenses have included main
tenance charges amounting for the en-
tire period TO 4I.O3 of gross revenues,
a ratio considerably higher than for
the railroads as a whole and un-
doubtedly including recovery of con-
siderable arrears of maintenance from
previous years.
Since the resumption of full private
operation the road has shown an oper-
ating ratio of 1919 per cent for the
year ended August 81. 1921. In the
same period the road earned. after
deduction Of expenses. taxes and rent
ais. balance appliea bic to bond inter
est of S9,7I5.0O9. This compares with
tire proposed fixed interest require
mcnts of the new company. as stated
above. of S4,917,717. and with all in
{. cost charges. including that on the
al iustmcnt mortgage bonds. payable,
II earned. Of S7792.717