PtPORT Of THE COMMISSIONtR OF INSURANCE.         1O0
The bonds of the Kansas City Railway & Light Company, first
liens, refunding 5's, were in default. The par value of these
bonds amount to $146,000, with a book value of $139,487.50.
We beg to submit a statement from W. A. Pickering, one of the
trustees of the exchange, in regard to their final payment and
the value of the property back of these securities:
EXECUTIVE OFFICES
W. R. PICKERING LUMBER CO.
Kansas City, Mo.
W. A. Pickering,
V. Pres. & Gen. Mgr.
June Seventeenth,
Nineteen Hundred Thirteen.
Rankin-Benedict Underwriting Co.,
Kansas City, Missouri.
Gentlemen:
Further in reference to the Kansas City Railway & Light Co. First
Lien Refunding Fives which we own and which are now due and unpaid
since May 15th, 1913, we beg to state that the price has, of course, de-
clined materially on account of default; however, if one is familiar witi?
the true situation they must readily see that this ultimately is a safe
bond. I have been watching the situation closely, particularly as to the
negotiaions with the City for an extension of their franchise. In all of
these negotiations the interest of the bond holders have been the first
consideration. The Metropolitan Street Railway, the principal sub-
sidiary of the Kansas City Railway and Light Co., is in the hands of
receivers appointed at the instance of Bankers to conserve the prop-
erty until satisfactory relations with the City can be effected. Most of
the boifds of the Company have matured and it was found impossible to
refund this indebtedness owing to the short life of the existing fran-
chise which matures in 1925. It may be said, therefore, that the com-
pany is not insolvent from any inability to meet its fixed charges.
It is a big going property, finely equipped and earning last year the
sum of $1,245,263.00, after deducting all fixed charges. This equals 5%
on the non-cumulative limited dividend preferred stock and 8.76% on
the outstanding common stock.
Banking interests friendly to the company have indicated their will-
ingness to refund the indebtedness (market conditions permitting), so
all that prevents payment of the Kansas City Railway and Light 5%
bonds at par is the lack of a satisfactory franchise.
Preliminary to the request for the extension of the franchise, a
physical valuation of the Metropolitan Street Railway was made by
Bion J. Arnold of Chicago, an eminent authority on matters of this kind.
Below we give Mr. Arnold's figures, together with an estimate of the
value of the Kansas City Electric Light Co., the other principal sub-
sidiary of the parent or holding company, the Kansas City Railway and
Light Co., also the indebtedness of all of the subsidiaries and parent
company.