| OCR Text |
Show PLANS ARE MADE FOR THE WESTERN PACIFIC San Francisco, June 23. The re- organization plan of the Western Pacific Pa-cific railway, which includes the sale of all lt3 property to the new Western Pacific Railroad company, the Issue of 75,000,000 of stock and $20,000,000 of bonds by the new corporation, and the mortgaging of the property to secure se-cure an authorized bond issue of 50,-000,000, 50,-000,000, was approved today by the California railroad commission. Tho commission's decision hinges upon the new Western Pacific company, com-pany, boing the successful bidder at the auction of the road, Juno 28, under un-der a decree of sa.e by the United States district court, fixing the minimum mini-mum price as 1S,000,000. The commission com-mission strongly commended the plan, which further provides for the issu ance of 47,500,000 of common capital stock and 27,500,000 preferred stock, practically all of which, together with a cash payment not exceeding 2,-000,000, 2,-000,000, will be Issued to a holding company In total payment for the property of the new Western Pacific company. The stockholders of this holding company are to be the holders hold-ers of the 50,000,000 defaulted Western West-ern Pacific bonds, who turned their bonds into the reorganization committee. com-mittee. The 20,000,000 bonds of the new Western Pacific company have already al-ready been underwritten and are to net the new Western Pacific company not less than 90 per cent face value, plus accrued interest. |
