Evening star., 1940-02-27
lie. c. Approves Plan
with Sharp Cuts
For 81. Paul
Preferred and Common
Holdings DecIored
Of No Value
D the A,socisted press.


The Interstate Commerce Com.
mission approved today q plan Of
reorganization for the Chicago. NIL
waukee, st. Paul Il Pacific Railroad
calling for drastic reductions In
capitalization and fixed charges.
The commission said the equity Of
the railroads preferred and common
stockholders was Of no value and
that the stockholders were not en-
titled to participate in the plan.
The plan calls for total capitalize
ton Of $548,533 1921 for the reorgan-
tied company, compared with $744,-
760.7l3 under the old setup. Total
fixed annual charges will amount
to 1880 ,6A, compared with nearly
$24 4.o00, 900. ~, -
The capital structure of the new
company. would include sos, 100, 40
OF fixed interest debt, $1l5,257, ,l8O
Of contingent interest debt, 3lOS, ,675,.
971 Of preferred stock, and 3215 ,8ls.-
400 OF common stock figured at 500
q share.
new Lease Favored.
The plan recommended q new
lease Of the Chicago, Terre Haute &
Southeastern, q part Of the MIL
waukee System.
The vast Milwaukee System ex-
tends from Chicago, Milwaukee, and
other Eastern termini to Seattle,
Tacoma, and other points on the
Pacific Coast, with lines extending
to Duluth. Kansas City, Omaha
Rapids City. Fargo. and many other
cities. Approximately Ills miles
Of voad are operated in IL States
Of which 9,s06 miles are solely
owned.
The Milwaukee has been in the
process Of reorganization since June
%, 1885.
The commissions plan will be
placed before the United States Dis
trict Court for the northern district
OF Illinois. If approved by the court
it will be submitted to eligible
security holders for their approval
or rejection.
The ALLEGATION of new securities ia
each 81 900 present bond or principal
OF claim. including interest to
December 81. 1888, follows:
Reconstruction Finance Corp.
$1,000 In first mortgage 4 per cen,
bonds.
Other ALLEGATIONS Given.
Milwaukee e. Northern bonds
first mortgage AIS $734.l2 in frs,
mortgage As and $31462 in genera
mortgage AZ per cent bonds, serie.
A; consolidated mortgage AIS 1862 Is
IN first mortgage Is. $367 06 in gen.
eral mortgage IS, $209.75 in genera
mortgage AZ per cent bonds. series
B. convertible, and $209.75 in S bel
cent preferred stock.
General mortgage bondholder.
would receive first mortgage 4 pei
cent bonds, general mortgage AZ pei
cent bonds, series A: general mort.
gage AZ per cent bonds, series B
convertible, and per cent preferred
stock for their holdings. The
amount of each issue for each 81 ,O0(
present bond follows:
Series A AUS, $279.30, $391.0l
$223.44 and $223.44; series B 31as
$275.70. $385.99, $220.56 and $780, .56
series c 41as, S2S317, $396.44, 1925 S.
and $226.54; series D 4lss, $2S3 81
1895 90. $226.81 and $226.8l: series
4As, $2s5.62, &399.s7, $22s.50 ane
$22850.
Holders of 50-year IS of 1877!
would receive $l79.38 in genera
mortgage 4las. series B; $717.5O In
per cent preferred stock and 20.
shares Of common stock; holders O
Gary first mortgage SIS would re-
ceive 1l87 shares of common stock
holders of adjustment mortgage s.
would receive 9.78 shares of com
mon stock, and holders of unsecured
claims would receive seventeenth
Of q share of common stock.