Word: icc
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Dates: during 1950-1959
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...plan, tentatively approved by the Interstate Commerce Commission, which would wipe out the common-stock interests, give control of the reorganized road to the bondholders. Last week the fight erupted in a rash of full-page ads across the nation and a flurry of charges and countercharges at an ICC hearing...
...question before ICC was: Have MoPac's earnings improved enough to warrant a change in ICC's reorganization plan and give common stockholders...
...Future? In ICC's Washington hearing room, Paul J. Neff, MoPac president and chief operating man for the road's court-appointed trustee, took the stand to answer the question. His answer: no. MoPac's net profit, he agreed, had hit $22 million last year, but this year it would be closer to $13 million. It would drop still more in the future, said Neff, as the business boom tapers off and Korean war shipments decline. As President Neff's damaging testimony continued, Bob Young held whispered conferences in the back of the hearing room with...
...companies, said Young, held only $20 million worth of MoPac bonds. Young's own cash investment is small; he acquired his MoPac stock when he and some friends bought Allegheny Corp. for $4,000,000. If the "New York Financial Group" has its way, said Young, and the ICC plan is accepted, holders of bonds worth $1,445 apiece would get only $158 in cash, $722 in fixed-interest bonds, and the rest in bonds bearing interest only if it is earned. Common stockholders would get nothing. Thompson, Young added, was siding with the bankers to put through this...
...till last week, Young had not seemed to be making much headway in his battle for the road. In the last vote on ICC's plan, the bondholders had heavily opposed him, were skeptical of his promises. But last week, there were signs of a shift. Word spread that MoPac bondholders had started buying MoPac common stock, just in case Young should...