New-York tribune., 1921-04-05
$l6,llO,37O Cash
Requirements of
C.. & f. [. Railroad
Details of Reorganization,
First Since War, Are An
nounced, Showing How
Funds Will Be Obtained

Details of the plan Of reorganiza-
ton of the Chicago & Eastern Illinois
Railroad Company, the first since the
war, were announced yesterday by
Kuhn, Loeb & Co., tho rcorganiza-
tion managers. The total cash re-
quirements of the plan are $16,11O,-
3TO, of which $4,000 900 is cash esti-
mated to be available in the hands of
the receiver, comprising loans from
the proceeds of settlement with the
United States Railroad Administration
growing out of Federal control, in
Guiding loans by the Interstate Com
merce Commission from the revolving
fund
The remaining s5,s1o,s7O is to be
raised from the sale Of general mort
gage per cent bonds of the new com
pany to stockholders of the old COM
pany, who are also acting as the
underwriters. Payment for these
bonds represents an assessment of
$50 share on the old stock, of which
SIS is payable on or before April 30.
Stockholders paying the assessment
will also receive common stock of the
new company on a share for share
basis.
The new company will be vested
with the title to all the railroads,
franchises, securities, rights I'D
other property of the old CO, .4-y,
but will not acquire the ca prop
critics formerly embraced IN the com
pany's mortgage made to secure the
purchase money first lien coal bonds
of the Chicago G. Eastern Illinois, nor
the lines of the railroad formerly
owned by the Evansville g. Indian
apolis Railroad Company, already sold
under foreclosure, nor the lines of the
railroad formerly owned by the Chi
cago e. Indiana Coal Railway Com
pany.
turbed in the reorganization amount
to S9,347,6oo, including $3,425,00C
ten year 6 per cent loan from the
government another of $7S5,000 run
ming for fifteen years; $2,736,000 Chi
cago & Eastern Illinois first consoli-
dated mortgage 6 per cent bonds, due
1884; $1,477,O 900 Chicago & Eastern
Illinois equipment certificates, series
III" and $691 500 receivers equipment
notes to the director general of rail
roads maturing serially to 1885.
New securities include $4,000, ,Oo(
general mortgage bonds, $22, 2,05l ,05(
preferred stock and S24,l35 100 com
mon stock. The preferred stock is
issued in exchange for S1S,0l9,o0
Chicago & Eastern Illinois refundin&
and Improvement mortgage per cent
bonds, due 1851; Sl,2S4,00O Evans
Vile and Terre Haute mortgage pei
cent bonds, due 1914; $2,451 800 CHI.
cago G. Eastern Illinois CONSOLIDATED
and first mortgage per cSnt bonds
due 1897, and Evansville g. Terrt
Haute first general mortgage pei
cent bonds, due 1912, and $296 .2ot
Evansville & Terre Haute Mount Yer
non branch mortgage 6 per cent bonds
due 1928, and Evansville 4 Ierrt
Haute Sullivan County coal bran Il
mortgage 5 per cent bonds, due 1880
The total capitalization OF the new
company will be $91 ,033,75O, compared
with s94,2O4,44S for the Ga. lher'
will be scaling down OF the flXe'
charges from S3,759,99' annually t'
$2327 ,051. .,.
The plan concludes by saying tina
"the average annual net rall"a!
operating income (of the new co.A
nanv1 can be conservativelv estimated
at S5.3OO.O0O, and net railway operat
ing income for the year ending Decem
her 81. 1921, est mated at approx
mately S4,1O0,0oo, such estimate beln'
predicted on a gradual resumption
business during the year. The las
half of the year normally produces ap
proximately two-thlrds Oh the year
earnings"