New-York tribune., 1902-02-12
MILLIONS IN BONDS TO IMPROVE B. R. 7. LINES.
TREMENDOUS ISSUE ORDERED FOR REFLNDLNG AND EI-
TENSTONS-TJNNEL BILL N 4iB4NT
OBJECTS OF THE COMPANY
STATEMENT FROM THE EXECUTIVE
Committee REGARDING THE
BIC BOND ISSTF

| \ report gained currency near the close ~
/ the stock market Yesterday that the BrcokIyn
! Rapid Transit Company was about 10 issue
| S150000O00 bonds. Late in the afternoon The
| following announcement confirming the .umor
and setting forth in detail the objects TO which
the bonds would be applied was made by the
| executive committee of the COMPANY
The board of directors OF the Brooklyn Rapid
Transit Company AT meeting on Monday unant
mously decided to submit for the approval OF the
March % 1902. mortgage 70 secure bonds 10 the
. IlLutIIt oI iLut S-Sv,v-yJ me propose
Collateral Trust Mortgage" and the bonds are tn
nIIe5SI lils iCe uL lol eACee'!Hs psI cSnt
the bonds that are issued thereuuder. other than
ing bonds of the company. can be issued and used
srty ana SecurlEeS- Inc BroohIyn Rapid Transit
Company is a securities holding company, and The
hereafter 20 be acquired by the company. subject
ment of WHICH as We'll as Of me otstSni 5oT
of the other companies OF the Brooklyn Rapid
Transit system, al maturity or sooner, is made in
this proposed mortgage
In recommending 70 stockholders mortgage for
So large an amount the directors have considered
/ the rapidly increasing growth OF BroOSlyn and the
country adjacent and the present ina hility OF
company's elevated and surface railroads prop
erly fulhl their duties the public without large
increase Of power, equipments improvements and
tinuance this growth the directors believe it to
be the duty OF The company 70 make proper pro
rlents suggest In order 10 accomplish This tbs
judgment viii Be elastic enoagn @ broad i enoasb S
cohesive enough and uniform enough 10 accomplish
the object, and this plan is embodied in the pro
posed mortgage. the terms of which are described
The directors also believe that one class OF bonds
eventually covering the entire system BY replacing
all other liens. and which can be sold from time 70
vii simoiifv and streDetbe1 tb co4Snsr%
and enhance the value of the property to the stock
holders. Out Of the $50 100000 Of bonds authorized
maturity or sooner If advssbe 81 ali the 1ssrfoSs
issues of bonds OF the companies OF the Brooklyn
10 sSi 665o0o. incGding the 500 go Of B5aesrT
Rapid Transit bonds referred 10 above
In connection with the foregoing announce
ment Of the directors. H Fl. Porter. OF ths
Brooklyn Rapid Transit board said
The growth of the Borough Of Brooklyn as parr
Of the greater York, l think, is more rapid
sociated with a corporation so called upon 10 en-
large its facilities by actual growth as the Brook
lyn Rapid Transit Company, and this until re-
ctated. This condition the Brooklyn Rapid Transit
directors after tboro1gb consiiersfio1 ba2a sTe d
parent 10 every one that the net earnings Of the
large, will not be enough for the next few years
pay for the requirements its growth calls for
pany can earn would have to be used in its growth
With a proper working capital for such enlarge
expenses ought 10 leave fair sum applicable ~
dividends No one can foresee the future for
necessarily be gradual. they can only be issued
for engagements OF the property. I personally
real value OF the stock. In other words the plsr
is TO enable the company TO do the right thing ~
the right time.
The outstanding bonds of the Brooklyn Rapid
Transit system. aggregating. stated in the
NEW YORK To C~LJ APT ESTr,O : = a D.