Show t I Road t to b be Reorganized 1 Simulating with the news of the f a passage of the Mortal Moffat Tunnel bill by bythe bythe bythe the legislature comes news that the Moffat road will at once be reorganized reorganized ize l and taken out of the hands of the receivers that a vast amount of money will be spent in improving the road and that work will vii soon commence commence com com- mence both on the time extension of the railroad west from Craig to the Utah Colorado-Utah state line and on the construction of a railroad from Salt Lake City east through the Uin Uintah tam basin t to o connect with the Moffat road at the state stale boundary says the Steamboat Sentinel An agreement has been reached by all interests concerned whereby both the Denver and the eastern bondholders bondholder's will be protected The first mortgage bonds are controlled by the Burlington the Denver Rio Grande Western and the Western West Vest Vestern Western I ern Pacific while the second mortgage mortgage mort mort- I gage bonds have been largely in the hands of Denver capitalists Until recently there has been a lack of or harmony between these two Interests interests interests inter Inter- ests but now both groups have united united united unit unit- ed in an arrangement which is mutually mutually mutually mu mu- agreeable and which is 13 satisfactory satisfactory satisfactory satis satis- factory to all of the creditors of the road Under the plan the Denver and Salt Lake railroad is Is' to be transferred ed to a new company In which the holders of both bond issues will take stock In exchange for tor their bonds This will allow the revenue of the road which is now on a profit profit paying basis to be applied to the payment of oC the receivers' receivers certificates Issued during the past three years pears and other short time obligations The bonded debt of the road being being be be- I ing hug cleared by the reorganization I plan a new Issue of bonds will be made to provide funds for improvements improvements improvements improve improve- ments of oC the line litre and for additional equipment The proceeds of this issue Is Issue Js- Js sue will be used to widen the grades so as to decrease the troubles from landslides to decrease the curvatures curvatures curva curvatures curva- curva tures on all aU sharp turns and to reduce re- re reduce reduce re re- duce the grades allowing faster running time and to line with concrete concrete concrete con con- crete every tunnel not bored through I solid rock This last improvement will remove the danger of such Interruptions in- in to traffic as that now being be be- ing fug experienced at tt Tunnel 16 This new bond Issue will be of large amount and will also provide for the purchase of much new rolling I stock i in n motive power freight cars and passenger trains All of these improvements will be made while th the construction of the tunnel Is In progress progress progress pro pro- pro pro- gress In preparation for the heavy traffic c which will result immediately from the opening of the bore Plans have also progressed far in the matter of the extension of the Moffat road to a connection with the Western Pacific over which it will have a direct outlet from rom Salt Lake City to San Francisco Governor Bamberger who projected the Salt Lake Denver railroad to build from Salt Lake to the Colorado line is now a member of the group which will control the reorganized Moffat road and he announced several weeks ago that he would begin the work of construction If the Moffat tunnel was assured and as this is isnow isnow isnow now an accomplished fact news of activity from that end is expected at once Another result resul t of the plans for the reorganization of the Moffat 1 road will wiIl be to Immediately provide a short rail connection between Delta and Glenwood Springs whereby the traffic of the Montrose and San SanJuan SanJuan SanJuan Juan sections of or the state will be betaken betaken betaken taken Into Denver over a route miles shorter than by way of Pueblo The Crystal River railroad Is to be reconstructed and it will m be extended extend extend- ed across McClure pass to Somerset on the North fork of at the Gunnison above Paonia Preparations for this work are already under way From Glenwood Springs the traffic will be delivered to the Moffat road over a mile 40 connection to be built up the Colorado river from Dotsero to Orestod For use on this new line the Rio Grande Western Vestern recently made a large purchase of ot the timber Umber on the southeastern slopes of the Flattops near Burns |