Evening Star Newspaper, June 3, 1925, Page 26

ST, PAUL HAS PLAN FOR ASSESSMENTS Road to Levy $28 Share on Preferred and $32 on Com- mon—Quick Actien Seen. By the Associated Press NEW YORK. June 3.—The receiver- ship of the Chicago, Milwaukee and St. Paul Railroad, one of the greatest bankruptcies in the history of the country, involving a property worth $750,000,000, will be one of the short- est, in the opinio of the financial dis- trict, if reorganization plans go through. It is estimated that. unless unforeseen opposition develops, the railroad will be entirely out of the jurisdiction of the courts within a_year, as prote ommit tees of stockholders have assented to a plan announced yesterday. Two Assessments Planned. Approximately $70,000,000 is asked of stockholders. The plan, made pub- lic by bankers here, provides for an assessment of $28 u sh: on_ the $115,931,000 of preferred stock and one of $32 a share on the $117.411,300 of common stock. Only $60,000,000 of new securities will be issued. Re- organization expenses will be $10,000,- 000. Provision is made for the reduction of interest-bearing securities from nearly $470,000,000° to about $242,000, 000, thereby cutting interest charges more than $10,000,000 a year. Three New Mortgages. Three new mortgages would be cre- ated. A new company would be formed whose securities would be ex- changeable under certain conditions for those of the present road. Calls 20 out today for the deposit of securi- ties for exchange and the reorganiza- tion managers—Kuhn, Loeb & Co. and the National City Co.—expect that by July 15 enqugh returns will have been received to justify application to the Interstate Commerce Commission for approval of the reorganization. Reasons for Failure. Comprising more_than 11,000 miles ©of line, the railroad was thrown into receivership March 18 because of de- ressed conditions in the Northwest, t was said. Engineers and officials also blamed competition by the Pana- ma Canal and post-war conditions, with attendant mounting costs of op- eration without increase in revenues. My idea of the laziest man in all the W RI G H REAL ECONOMY SPECIALS WE FEEL THAT PROFIT in this present campaign will be justified by GREATER VOLUME and GREATER CUSTOMER TION. Take advantage of our PRESENT OFFERINGS—everything for home fur- nishing included. LOWER PRICES FOR BETTER QUALITY FURNITURE SIMMONS == I BEDS==] BE Two-in ; twiplink spring. S SIMMONS wood finishes; continuous twin the complete outfit for , N N 1\\ 077000 Square Tube SIMMONS BED OUTFIT No. 3 Bed, Spring SIMMONS BED OUTFIT No. 2 post link SPRING; SIMMONS Orange label MATTRESS; 2270, EVERYMAN’S INVESTMENTS BY GEORGE T. HUGHES. RESULTS OF MERGERS UN- CERTAIN. Too many people have bedn acting on the supposition that because one large system plans to take over some smaller road, the securities of the Jatter become instantly much more desirable than they did before the consolidation scheme was announced. This may be good speculation; it is not sound investment. Only after a period of years can it be definitely determined how any particular new alignment in the railroad fleld will work out and the uncertainty which attaches to all new enterprises per- tains to these railroad combinations »3 well. The only safe basis for investment is the actual traffic-producing capac- ity of the particular piece of road on which the bond is a mortgage If it is a bond the investor has in mind, or the demonstrated power to show earn- ings in excess of dividend require ments if it is a stock which it is intended to buy. There is no sub- stitute for th fundamentals _in | determining in ment values. Nor |1s it safe to go on the theory that | because one road bids a high price | for control of another road that this price will be justified in the market for the securities over a longer period. There is more chance of making a | mistake along this line in the case of | railroad stocks and bonds than there is with the utllities. Opportunities | for expansion, which are so boundless for the electric light and power | companies, are strictly limited for | the railroads. (Copyri RUBBERS AT NEW KIGH NEW YORK, June 3 (®).—Crude rubber prices touched new high levels in the local market today, June ribbed smoked sheets being quoted by sellers 723 cents, July 69 to To cents and eptember at STEEL LETI'ER FILE CABINETS 527.50 Standaird Four-drawer, Roller-bearing Green File, with full-finished ends. Very special— Ice FURNITURE DEPT. Washington Salvage Co. 310 8th St. N.W. 1925.) & COMPAN OUR SACRIFICING SATISFAC- SIMMONS D OUTFIT No. 1 ch continuous post, white enamel SIMMONS COT- , rolled edge, art ticking. Double or single size bed. VERY SPECIAL — THE COMPLETE OUT- FIT— 142 BED; 222222222222 2222272722l T22) 222 22 2R T2 2222 2222 2222, 222 2 22222 e 227 e 2l L 2O 222222 S22 7220777 and Mattress THE EVENING COAL MINERS START NEW ORGANIZATIONS West Virginia Mines Having Hard Struggle Because of Pres- ent High Wages. Special Dispatch to The Star. BALTIMORE, June 3.-—Miners are leaving the established unions and set- ting up organizations of their own. This is the word that comes from the coal fields of northern West Virginia. The movement thus far has not as: sumed important proportions, but the fact that it s under way Is heralded as a development in the coal industry not to be lightly treated. The break from the established unions is due to the almost complete cessation of opera- tions in the Fairmont region and in other unionized districts. The Consolidation Coal Co. of Balti- more is not producing a single pound of coal in northern West Virginia. It has shut down mines, estimated to be worth, with their equipment, $25,000- 000. These mines will not resume operations until it is possible to run them without loss. The reason as signed for drastic action by these companies and others, which no longer find it profitable to mine coal, is the high scale of pay demanded by union miners. Operatives in non-union Regimental Stripe Ties in the latest colorful combinations STAR, WASHINGTO receive only half as much as do those in union fields. ‘The result that non-upion coal companies hav®gained control of the coal market, and they are increasing their grip. It is estimated that more than 70 per cent of the soft coal pro- duced in this country now comes from non-union workings. Only a few years ago output of non-union mines was less than 20 per cent. CHICLE APPROVES PLAN TO ISSUE NEW STOCK NEW YORK, June 3 (#).-—Stock- holders of the American Chicle Co. have approved a plan of recapitaliza- tion by which an issue of 24,670 ad- ditional shares of common stock will be s0ld to a syndicate at $50 a share, also the issuance ‘of 37,500 shares of no par value 7 per cent cumulative preferred to be exchanged for the outstanding 6 per cent preferred in liquidation of back dividends. Pro- ceeds of the sale of the new common will be used to pay off bank loans ol’ $915,200 and $634,000 of 6 per cent -year note: STOCK INCREASE PLANNED. NEW YORK, June 3 (P).—Stock- | holders of. the Hurley Machine Co. have authorized an increase of 100, 000 shares in capital .stock to 300,000 shar 18t of .no par value. ares outstanding. There are aks— PENNSYLVANIA AVENUG AT SEVENTH | A sale D. C, WED WITHERS RITES HELD. Former Member General Assembly Is Buried in Danville. Special Dispatch to The Star. DANVILLE, June 3.—Funeral serv- ices for Eugene Withers, former mern- ber of the General Assembly, were held The Velvet Kind ICE CREAM Summer Weight of pajamas of the desired light-weight materials that fill the bill for men of all sizes. Cool and comfortable and made right. The colors are sufficient for a varied choice: blue, tan, helio and white. Silk frogs and well finished. Men, it’s but a step off the Avenue. Saks—First Floor Pink, onderful | Any time, any place, a delightful treat! Peppermint! at Mount Vernon Methodist Church at 10 o'clock this morning, the obsequies being conducted by Revs. 8. T. Senter, J. Cleveland Hall and Joseph Dunglinson. At Green Hill Company. market for same. us any time. Day Phone: N \u\\sk\\\xs\xs\sfi\\\ss\\\“\\“ms\\mm‘\mm\mm\w&sm\ A al—hl—— ]l [lc—— b [c——]al——=]T] Sizes: Franklin 1170 cemetery the Roman Eagle Lodge of Masons had charge of the services. Mr. Withers was a member of the House of Delegates in 1893 and 1894, and of the State Senate from 1895 to % The Whole Story The above cut is the latest addition to the_fleet of the Hires-Turner Glass They have been satisfied with the performance of previous trucks bought from us, and just naturally come back for new trucks when they are in the We have a large stock of motor trucks on display in our showrooms, ranging from 34 to 5 ton. As we are open evenings, we extend an invitation to you to call and see Let Us Demonstrate One to You Free Inspection—Night Service 34—1—174—2—3—5 Tons INTERNATIONAL MOTOR TRUCK AGENCY, INC. 228-32 First Street NW. m\“\mwmx\\\v&\n\\m“\\“mm\\\s\\\\\\ LANSBURGH & BRO. BASEMENT STORE Entrances 8th and E Sts.—Stairway 8th St. Entrance Nearest E St. An Exceptional Purchase! 0 Flowered Silk Crepe DRESSES ' 7,95 | 3 = | | fl 5| June brings new styles, and a lucky pur- chase brings wonderful val- ues tc: Wash- You'd never imagine could be bought for so low a price as $7.95. It would seem that the materials and trim- mings alone would cost more! wonders the L&B Basement cease. Latest of styles, trimmings and many Their fresh and cool appearance Night Phone: 1898. In 1900 he was presidential elector and during 1901 and 1902 was a member of the Virginia constitutional conver- tion. For three years, from 190% Withers was city attorney of Danville. SRS oS S S SR SRS R SRS RR SRR SRS = AAFRRNERERTFERIE IR FEERRFP SRR NRREEN AVARHRNVARERTINNEENNA AN, Lincoln 2721-W B AAARAAAARAABALARARARARARAAARRR AR AR HAL SRS /\ q [of E fl | I 1 such beautiful dresses But in never daintiest of designs. makes them ideal for Summer Athletlc Shoes 89@ : In brown or white Simmons Square-tube Bed, mi- tered corners, square fillers; SIM- MONS COIL SPRING ; SIMMONS All - layer- felt Mattress. The entire outfit for 5365 CONVENIENT PAYMENTS Weekly or monthly payments to meet your budget plan— EASILY ARRANGED Children’s Canvas Slippers In brown or white canvas. Good qual- ity rubber soles that will stand the rough- canvas, with durable plain o r suction igl;j: | tSO'Zg.S 8 1o ?itg'wear. Sizes 6 to ildren’s Leather Sandals $ 'Just the thing for play wear. Made of fine leather with flexible leather soles. All sizes 814 to 2. e4lways Right in Juality and Price 905 7th STREET LI SR AR LA A T P 2 2 L L 2 2l T T 22 T 2T 27T, | | | | | | P71 A O OISR | m: @_ | il o] ——a|——— o]l ———=n[——] v