Salt Lake Tribune | 1917-01-30 | Page 2 | Reach Settlement in Railroad Suit

REACH SETTLEMENT IN RAILROAD SUIT Minority Stockholders of Hock Island Accept $7,500,000 With the Approval of the United States Court. CHICAGO, Jan. 29. Settlement of the suit of minority stockholders of the Chicago, Chi-cago, Rock Island & Pacific Railway company against Daniel G. Reid and William Wil-liam Moore for S7.rinn.oori was approved today by Judge Carpenter in the United States district court. The terms of t he settlement include the purchase of S..OOit.OOP of fi per cent preferred pre-ferred stock of the railway company by Mr. Reid and Mr. Moore, the payment by them of $."u0,0o0 and all the costs of the litigation. The settlement is a part of the reorganization re-organization plan agreed to bv the several sev-eral stockholders. The 55.000.000 stock to be purchased is part of a new issue. $20.OfiO,noo of whi'-h will go to holders of tho present twenty-year debentures of the company. Ob if ct ion to the settlement was made by counsel of the Keokuk & Des Moines Railway company, which has a claim against the Chicago, Rock Island & Pacific Pa-cific Railway company, gorwing out of its lines having been leased by the Chicago, Chi-cago, Rock Island & Pacific Railway com-pa com-pa ny. The objection was overruled by Judse Carpenter, who said that the rights of the objector were not affected.