Salt Lake Tribune | 1914-03-06 | Page 3 | [Illegible] is Made on [Illegible] Island Road

pfSflffi i P UD ROAD (holders7 Protective Com-lee Com-lee Told What to Ex-pect Ex-pect by Chairman. $ MONEY IS NEEDED i! ls Not Forthcoming the iaent Management Will Step Down and Out. I r YOKK, March o. In a report bondholders' protective comuiit-M. comuiit-M. Schumacher, chairman of iicago, Rock Island & Pacific Rail-sompany, Rail-sompany, toda' made known the !fof his recent investigation of ock Island lines, including their jcash needs and future require- f Schumacher estimates that not tau 20,000,000 will bo required ly 1 next to meet bonds and car fcrtificalcs maturing, iloating in- Incfis. including $123,500,000 duo Iroad company, and interest pay-Itogother pay-Itogother with many other press-igations. press-igations. lie estimates that cash id and net earnings for the period jgrceatc $8,000,000, and the man-it man-it is now applying for permission ib a tdiort-tcrm loan of $7,500,000 t'- securities in the company's r'v, Jt' is believed that such a n be obtained, but there will etnain $-J,ri0U,00(J to bo provided In now and July 1, 10H. xg for Dividends. Srovisiou is nuulo for the pay- if the dividend due May 1, 1914, j" stock of the Chicago, Rock f& Pacific Jlailroad company, S collateral for the 4 per cent of the Chicago, Rock Island & j'Jiiailroad compan-, due in 2002, i the .judgment of the mauage-iiis mauage-iiis dividend should not be paid, . Schumacher. he system's future need he says: ("order that the railway company i operated to the best advantage foduco the best results, an ex-ire ex-ire of about $25,000,000 will be id for betterments and iuiprovc-during iuiprovc-during the next five years. This puld put the road in better shape ipete successfully with its ncign- i a physical condition of the road J by "any means what it should mndlc the business which is likens like-ns offored when tho general busi-fflhn busi-fflhn country rovives, as wo be-t.Vtill be-t.Vtill in the not distant future, 'bur -judgment, however, the sum not W spent immediately, but i'sprcad in equal installments over fa of live vcavs." Kequirements. estimated total requirements for xt live years are given in the res', re-s', not less than $50,000,000 in-Ij in-Ij betterments and maturing car grtilicatcs of $12,000,000. ffst these requirements tho coin-low coin-low has treasury bonds of $15,-i? $15,-i? and will receive in five years, rrate of, $3,500,000 annually, $17,-)of $17,-)of -1 per cent refunding mort-iomls. mort-iomls. These securities, the re-iys, re-iys, should have a good market credit of the company can bo rc-felled. rc-felled. company 's otlier needs arc gone 'length, including the obligations operating company (the Illinois ttion), winch is responsible for B),000 of outstanding bonds. KSchuinaclier "s final conclusions Bess some plan can be devised lhas a good prospect of aeeom-k, aeeom-k, these results and. which is Kali classes of security holders, Kg the 1 per cent bonds reprc-Eby reprc-Eby your connuitteo, the manage-mat manage-mat 'I ve)rcsent will feel if in.nl-ilo in.nl-ilo continue in charge of the She expenditures indicated above Idc and a fair plan of organiza-Ku organiza-Ku be devised which will prone pro-ne uceessary funds as needed, we Ifcnt confidence that the property gwodut-c satisfactory results, anU 5m lime substantial dividends can fanned on a proper slock capital, fo interests of all be fully con-