The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-06-29
KATY ROAD MAY
Be REORGAN!ZED
Receivership Dissolution
Petitioned in U. S.
Court at st. Louis
R0 ID MAY BE BID IN
interests Now Controlling
Line May Purchase and Re-
finance corporation

ST.. LOUIS, juno 2s,--A tiecree
looking towards the dissolution Of
,as receivership OF the Missouri
Kansas & Texas Railway Co., was
,,ed in federal court here today by
holders OF the roads bonds and
marigages~ and other interested
parties.
The decree was filed before Y. s.
e.svsuit Judge Sanhorn The only
N1i,s,ion 10 the decree was made
nv the counsel for the Kansas city
terminal Railroad association and
us nine constitutent railroads, eN-
rapting the Missouri, Kansas & Tex
"a. and the court heard the legal
rtascs of this objection at once.
objection was not to the entry
. the decree as a whole, but 70 one
r.ovlsion IN 1.-THE plan for the
,.ndrawal Of the Missouri, Kan
.. 4 Texas from use of the Kansas
CIV union station and establish
r,eui of IT'S own Separate station,
The decree held that the hest In
forests of the road and its creditors
could be served best by dissolving
The recelvership and selling the as
sets. II pointed out, however, that
oporation under the receiver had
been successful.
May Bid In Road.
Definite re-organi2ation plans be-
cnme known I'm the latter part OF last
wear, Belief was expressed that the
financial interests now controlling
,ho road would bid It in at. an auc-
lion sale under srec!a! uastor.
The decree asks that the sale be
I'm the Missouri Kansas e. Texas
STATION at Colbert. Okla. Rcor-
g1rizatiou plans contemplated
considerable reduction of the fixed
interest hearing debt of the rail-
road and replacement OF old issues
Of stocks and bonds with new Is
sues ms we'll as assessments OF $50
a share on the old preferred and s25
share on the old common stock, 10
provide $1S,420,o0O cash for re-
organization purposes.
A motion thereupon was filed 20
knock out the objection advanced by
the Kansas City Terminal associa-
ton.
The decree ~ approved. would
order the receiver 10 sell the rail-
road and all its assets. 4 group OF
New YORK financial Interests has
undertaken 10 form a syndicate as
re-urganization managers, to under
write cash payments from the stock
holders on assessments. 1t Is un-
dors'ood that this group OF finan-
clal interests will back the purchase
Of the road from the receiver. J.
& W. Scligman e Co, and Iiallgar-
ten e Co., Of New York are the chief
reorganization managers.
Features of New Plan.
The PRINCIPAL rcaturcs OF the new
man as agreed 10 by the receivers or
the road and the committees rep
resentng security holder and pre-
viouslv announced are:
Reduction Of the Interest bearing
debt from S1tG,54S.14o n 500 ago.
. 9l3. and Of the fixed interest charg-
| es hy about s2.50o 600.
Reduction of the old company's
! total Capitalization OF stocks and
bonds of S243,095,o00 70 bonds and
| preferred stock in the new cOmpanw
argregating sIS2.32O.OOO and 7S3-
Is5 shares Of common stock without
par value. Assessments of $50
share on common stock OF the old
\ company and s25 a share on the
preferred 70 raise $1S420,O0O cash
the reorganization plans in general,
The decree would provide for
certain financial arrangements In
connection with the termination of
the receivership. but IL silent as TO
4 for reorga niZation purposes.
A month ago, Il was rumored that
/ Me road vas considering purchase of
n The Chicago & Alton. hut the rumor
was denied by officials of the or
gan!zation, they pointed that as the
road was in a receivershlp II first
would have to emerge from the re-
fore such transaction could be con-
iore such transaction could be con-