Show bondholders give 41 their approval of tunnel plans ilio artitia lilith 1 IS af local interest In ix lia taki taken from froin a it colorado paper A boully doli nito tam madu made 4 eutia in tho tile moffat tun tie 11 I 1 atud there now every pos utility III 11 get buy busy in wo viding tho funds to construct tho the big bore boro the tile definite plane plans of joy anor arnor for a westward wee ox ex 14 hae livis made tho the moffat tunnel necessary everything 1 in miudo naw for the mast prosper u etenson north colorado ii s ko ever known bondholders CO 60 pur per anit of the first mortgage niort KUKo bonds of tile denver I baft batt lake railroad with will hindquarters in now york have brought a step nearer the con st ruction of tho tile moffat tunnel by approval of plans submit tale ity oy tho tile denver civic and comfor aal association thie this new development in tho tile tunnel project was made public by william V hodges of thel the civic association mr nir hodges announced that in ill do a comprehensive plan for tho the construction of the tunnel was nub knitted to edward R tinker chairman of the tile bondholders committee in lit a telegram from mr air tinker re belied bauar 13 it wag was aid said that gel aid hughes senator lawrence lawren ic C I 1 burone tham ller denhan in waldek mr air close and approved in ili principle the plane plans of the denver alvic and commercial association while the approval of the bond holders hold cre committee cannot bo be con can midfred as final mr air hodges point pointed gal out that it Is a ba step in the pro negotiations in addition to the approval by the majority of the bondholders bond holders mr air hodges said that approval of other bondholders might bo be necessary while are many detail 8 yet to bo be worked out adoption by the entire committee of the plans piano tentatively ati approved proved by six 1 of its members would mean according to mr air adges assent in principle to the following first the tunnel mone to be secured by first lien on oil the tunnel second the tho funnel tunnel money to bo be guaranteed principal and interest by the railroad the guaranty to be a first lien on oil the railroad of equal standing anding et with additional bonds lu to pay existing proter led sli kluis and provide A fund to absorb operations in lit railroad deficits during thu tho period of tunnel cone provision for which IB Is an a essential 14 to the ho opt operation ration of tho tile road and ithe tb of thu pt uple nerved served by it ir as IM lit tho the construction of the tunnel itself third the tile payment of some sonto bo us in the tile way of secured ownership in lit the equity of tho the railroad to those who provide the money for the tunnel construction fourth the payment of all al tunnel operating expenses by the tile railroad and the free use of tho by the railroad thin agre agreement ament Is far from a oni pleto agreement said mr hod ther therea are many material points to be n negotiated wo we roay may fall entirely too to concur in a plan because of disagreement as to essential details dot det alls and any agreement negotiated got must bo be submitted to to individual bondholders and receive the a of a sufficient amount to make it possible to carry out any plan that may be agreed upon tho tile importance of the document documents submitted ie Is to show concurrence in lit principle only on the first point that inest be met the report Is progress and justifies following up the business but must not be allowed to raise false hopes mr air hodges a cam plute engineers report to learn what may bo be expected in earnings if the tunnel ie Is built and no extensions made if extensions alona aro are mado made what they should bo be and what may be expected in earnings and what money bould be needed to build the tunnel and connecting phases of the building and extension in ic ie porting progress pro greBa mr air hodges said there is outstanding about first mortgage bonds and second mortgage bonds and all told about is invested in the enterprise ahead head of thie this la is a preferred claim incurred during receive receivership ertho erthe and indebtedness to the federal government of probably 2600 2 railroad is losing between GOO and every year under present conditions for construction of the tunnel or perhaps as much as may be needed then luring construction there will be deficit deficits because the cannot pay standard wages and make money too if they raise the rates fo fol freight they will be so high that shippers shipper cannot compete on this market this will be alleviated by the tunnel and will put the people in lit that country north and south of tho the railroad in close touch with markets and give i denver and salt lake city a transcontinental line |