The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-05-25
new TROLLEY
PLAN offered
stockholders
Street Car Capitalization
Slash to Cut Fixed
Charges Proposed.
CONTROL TO BE LOCAL
Five Trustees to Direct Re-
financing, Reduce insult
Holdings.

Slashing Of the capitalization Of
the Indianapolis Street Railway
Company from $lo,OOo,0OO to S1o,-
$4,000 to reduce fixed charges; re-
duction of the insult holdings from
40 to 80 per cent and a flve-year
rehabilitation program are proposed
in new street car plan submitted
today to stockholders.
Local control of the line through
a board of five trustees composed
of Indianapolis men and the OBJ
tanning of new capital for rehabilita-
ton purposes through an assess
ment also are outlined in the pro-
posal.
First step In, setting up a new
company must be the foreclosure OF
the mortgages which is hoped to
be accomplished by Jan. l, 1882.
No Fare Increase
Refnancing and fiscal schedules
upon which the new capital struc-
ture is erected, is based on no in
crease in fares, declare chairmen
of the stockholders committees,
who are advancing the new plan.
South Meridian street car line
users will be the first to benefit
under the rehabilitation program,
Gavin L. Payne, one Of the chair
men declared.
Plans call for the installation Of
electric trolley BUSES on that line,
he said.
The plan calls for the election
by each Of the four stockholders
committees of one member to a
board Of trustees. The Fletcher
American Company, reorganization
manager, would name the nth
trustee.
These trustees, to serve five years,
would vote the common stock and
will elect the board Of directors.
The directors in turn will name the
officers.
Chase Is Approached
Advances have been made to
Charles w. Chase, manager OF the
Insull-owned Gary Street Railways,
to assume the nanagership OF the
indianapolis line.
Chase, one of the best known
street car line managers in the
middle west, would be required to
give I'D all his connection with In
sull if he takes over the manage
ment of the Indianapolis company.
Proposed financial setup OF the
street car company, now in receiver
ship, Is proposed as follows:
Holders of Citizens per cent
bonds would be given 70 per cent
of their present holdings in new
general mortgage bonds and one
half share of the new common stock
for each 500 of par they now hold
Owners Of the street car 4 pei
cent bonds would receive the new
bonds to the extent of As per cent
of their present holdings and would
receive in addition three-f1fth OF one
share Of common stock for each $10C
par they now possess.
Trade in at Half
Broad Ripple bonds would be
traded in for the new bonds to so
per cent of their present holdings
plus one-half share Of common Tor
each 500 or par.
Preferred stockholders would re-
ceive for each share, upon payment
of a 20 per cent assessment, q $40
share Of the new general mortgage
issue, one-ffth of share converti-
BILE preferred and four-fftts Of e
share of common stock.
Terminal building and property
bonds would be traded, one for one,
and the company would be given a
first mortgage on the terminal and
other street car company buildings.
The interest rate on the bus com
pany mortgage bonds would be cut
from the present 8 per cent to
per cent and the holders would be
asked to subscribe to the new Sc
curities.
Sponsors of the plan declare that
the new capital expected to be
raised will include S1,250,o00 on the
assessment, and $1,50o000 on car
trust certificates. Later on, the
company expects to issue first mort
gage open end bonds to raise
$4,000, 900 to be used in the flve-year
rehabilitation program,
Mayor Can't See Them
The chairmen of the committees
Irving Lemaux, Payne, Ross Wallace
and Roy Shaneberger. and the at
torney, Julian Ralston, were to call
on Mayor Reginald H. Sullivan to-
day and explain the plan, but the
mayor was unable to receive them
This is the second plan to be
submitted. The first, which was
turned down by the city several
months ago. was proposed by the
insult interests and called for e
service at cost franchise and the
expenditure of 100000 upon re-
Mobilization of the lines. The city
refused the proposal on the grounds
that it did not care to grant the
Insult interests an indeterninate
and indefinite franchise