104


REPORT OF THV COMMISSIONER OF iNSURANCt.


Physical valuation of Met. St. Ry. (Bion J. Arnold) ...... $23,220,086
Physical valuation of K. C. Elec. Light Co. (estimated) ....  8,000,000
$31,220,086
Outstanding indebtedness subsidiary com-
panies .        .   .          ....... $12, 248,000
Outstanding indebtedness K. -C. Ry. & L. Co.
(Exclusive of 6% notes which are second
to refunding 5%o bonds .10,200,000
6% Gold notes.                             5,478,000
27,926,000
Balance valuation over entire bonded debt .$3,294,086
In the arguments for an extension of the franchise, the City is per-
mitting a valuation of $30,000,000, as a basis, the present contention
being a satisfactory adjustment of the City's interest in the future
earnings of the company, and the partial amortization of the company's
indebtedness during the life of the new grant.
If the worst should happen and the property ordered foreclosed in
favor of the underlying bonds, undoubtedly this underlying indebted-
ness could be re-financed for the life of the present franchise, thereby
giving an immense equity to the Kansas City Railway and Light bond
holders, also an earning power of 28% on the total Kansas City Railway
and Light bonds outstanding.
This is for your information, as we have a good block of these bonds.
Yours very truly,
(Signed) W. A. Pickering,
Trustee.
WAP/F.
The book value of these bonds, which as we have previously
stated was $139,487.50, ineluding the book value of the remain-
ilg bonds over market value, amounting to. $8,290.91, n'iaking
a total of $147,778.41, was dedueted from the gross assets, mak-
ing the admitted assets $713,318.35.
Liabilities
The amount of unpaid and unadjusted claims was $26,872.55.
A list of these claims is as follows:
Aycock Lumber Co., Florida   .     .                     $67.37
E. E. Jackson Lumber Co., Alabama    .    .   .4,009.60
Frost-Johnson Lumber Co., Texas .  .......................  50.00
Richmond Cedar Works, North Carolina..................  1,175.58
Weldon Lumber Co., North Carolina    .   .   .20,950.00
J. S. Betts Co., Florida    .         .70.00
Fernwood Lumber Co., Mississippi .  .....................  200.00
Total .$26,522.55
Unpaid Commission
The unpaid commissions due the attorney on premiums written
was $26,872.55.