The New York herald., 1922-05-31
TOREORGANIZE
LARGE RAIL SYSTEM
Bankers Here Will Announce
To-day International and
Great Northern Details.


plan for reorganizing the Interna-
tional & Great Northern Railway Com
pany, in receivership since 1914, has
been completed by ]. & w. Seligman &
Co. and Speyer & Co.. and is to be made
public to-day, bearing the approval Of
committee representing the .company's
three year per cent. notes That COM
mittee is headed by Frederick Strauss
| The banking firms have formed a syndi-
cate to underwrite the cash requirements
| of the program, amounting to $1S.000,-
| o00 Under the terms of the plan a new
company to be formed to take over the
property will be supplied with approx
mately s4.000.000 working capital and
minimum interest charges will be re-
duced from s1,597175 year to s1.179.-
900. saving of 26 per cent.
Provision is made for the authorize
tion of three classes of new securities.
consisting of:
S40.O00.000 first mortgage bonds. to be
issued in series.
$25, 100000 adjustment mortgage
bonds issued in separate series, interest
to be cumulative beginning on January
1, 1928.
s7.500,o00 of common stock.
Basis of Exchange.
Holders of present International & Great
| Northern securities will be entitled to
| exchange their bonds and notes for new
securities on the following basis:
| For each $1,000 International & Great
Northern Railway Company's first mort
gage gold bond with coupon maturing
on November 1, 1922)-s1.000 first mort
roc aeriae NJ the
new company with interest from July 1,
1922. and s55 in cash:
For each 81 900 Colorado Bridge Com
| pany first mortgage gold bond with
coupon maturing November l, 1922
81 900 first mortgage per cent. bond.
series A. of the new company, carrying
interest from July /. 1922. and $3.50 in
cash;
For each $1,000 International & Great
Northern Railway Company three year
gold note with coupon maturing on
August 1, 191D-S1.22 adjustment
mortgage 6 per cent. bonds entitled to
interest from January 1. 1928. II earned,
and $22292 in common stock;
For each $1,000 International & Great
Northern Railway Company first and
refunding mortgage bond with cou-
pons maturing on May 1. 1914, and all
subsequent coupons)-S97S34 adjust
ment mortgage bonds. entitled to inter-
est If earned. from January /, 1928, and
$467.50 in common stock.
To Pay First Mortgage Bonds.
The plan provides to pay off in cash
at maturity. November /. 1922, holders
of first mortgage bonds OF the Interna-
tional & Great Northern Railway Com
pany and the Colorado Bridge Company
who do not elect to deposit their securi-
tfa- t1,o YN1n IL.
for the issue in the first series OF $780,
100000 first mortgage 80, year per
cent. bonds. to provide for exchanges and
raise cash. OF this amount $11 1,420,500
is for exchange. s5.S29.5O0 will be sold
and $2.750.000 will be used to secure
the extension of a s2.400,o00 note held
by the Railroad Administration.
The amount of SIT 7.000, 900 adjustment
mortgage bonds. series A. 6 per cent. in
terest and maturing in 80 years will be
issued for exchanges and to raise So
463,SS0 cash, while of the $1,000 900
common stock proposed S4.529.S90 Is to
be sold for cash.
Compa risons of Companies.
The comparison Of securities and in
terest charges OF the old and new COM
panies is presented in this table:
NEW COMPANY.
Securities. Interest.
tirst norfraae. .SiT."Fn no0 - .025, ,Ofs'
Adt. mortgage. 1000 900 '1,020, 900
$50 note...... .:.-...... ..i0o.o01 1900
Common stoc'........ $500. 900 -.
Total capial.......si sii.i5o,ooo s2.fes.ooo
OLD COMPANY
Bonds and notes. .s2e, ,5io.s2I si,5e7. .i75
Interest accrued...... 5.3as $50 ...
Preferred stock. ....... 3,40O,OO0 49,
Common stock........ I .i22 900 49,.
Total capital. ...... s36, ,060.JT7 sf,59T,t15
!
| 'Contingent on adequate earnings, interest
| at formation OF new company, Sii1a.Oo0.
a report complied by j. w. Kendrick.
n railway expert. estimates that the
road should provide from 1928 TO 1926.
inclusive. net income for dividends and
interest amounting to SO. 900, 900 annu-
ally. The report notes that under the re-
ceivership about 100000 has been
spent for additions and betterments
Under the plan the stock OF the new com
pany is To be assigned to Willard "
| King. James Speyer and Frederick
Strauss az trustees under five-year
trust agreement.
NEW ORLEANS COTTON MARKET
NEW ORLEANS, May 30--Cotton close
ut tn -Hux .t nd