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Show REORGANIZATION TO IXSURE MOFEAT TUNNEL Lawrence C. Phipps chairman of the board of directors of the Denver & Salt Lake Railroad company, returned re-turned to Denver last week from an extended trip to the Pacific coast, and Is now conferring with the Denver Den-ver officials of the company in reference ref-erence to the affairs of the railroad, says the Steamboat Sentinel. Charles Boettcher, president of the company, is In New York in connection with the negotiations with eastern bankers bank-ers concerning a reorganization of the company so as to permit the building build-ing of the Moffat tunnel. The new reorganization plan of the Moffat road provides for ?6,-000,000 ?6,-000,000 new money with which to build the James peak tunnel, to pay off equipment and other obligations, to provide shop and other facilities, and to build an extension to Neder-land, Neder-land, the center of the new tungsten camp. It is estimated by the management that with these improvements, the road could earn 6 per cent on the $6,000,000 new funds and on the $10,000,000 outstanding bonds, and within two or three years probably 2 and 3 per cent on the outstanding stock. To make the new securities attractive, the present bondholders will be expected to take a junior 'security, cither a new bond or a preferred pre-ferred stock. A majority of the bondholders bond-holders aro said to have assented, including those in Denver. About $2,000,000 of the bonds are held in Denver, between $500,-000 $500,-000 and $1,000,000 In Boston, and the balance in New York state. A circular has been eent out by the management of the company announcing an-nouncing the plan. The bankers' committee recently had an expert, E. W. McKenna, formerly vice-president of the St. Paul, so over the property, and his report Is expected soon. Its contents will be embodied in a formal statement to the holders of securities when the reorganization committee is ready to proceed. |