New-York tribune., 1903-02-12
FRIES BIG PL4NS.
Better Fey7y, Nc7u Station and a
Cit Ouer Bergen HiH.
TO ISSUE s1o,ooo,ooo OF BONDS.

TO ISSUE 5lO,OOU,UOU Or o''
The long current report of the intention OF
the Erie 1nanag cement TO issue bonds for the pu'-
nose of providing funds for extensive lmp'oNe-
ment OF the system took concrete form !esle'
aa,, afternoon in the following official announce
ment:
..Tbe board of directors of the Erie Railroad
Co,rnanv to-day voted to authorize the issue OF
s1o uoo 900 per cent fifty year gold bonds con
vartible into common stock of the company a'
40 after April l. 1905, and before April l. 1910
,s nernntted by an amendment to the RaiToau
law of 1907 .,
..-rba bonds will be secured by mortgage upon
all the company's property. which VIII
that subseouent bonds may be issued from ~ 'lli'e
tn time not exceeding in the aggregate S'''V"o'
oOO which bonds may he made conVer'ioie Iiil'
common stock at a price to be fixed When the
bonds are issued
.The 100000 900 of bonds now to be issued arc
to he offered for subscription pro rata 10 'ne
to14ars of trust certificates for first ana Secohu
nreferred and common stock of the company dV
tho nrice of ST1b and interest. Al under"il'l"s
syndicate is to take such bonds as are not SUI
scribed for by the trust certificate holders
The executive committee of the company mas
for some time been carefully investigating 'nS
i1,Dorrant needs of the the company loI dNu'
ti,ns and improvements to it's property, ana tue
oToceeds of these S10,000.00O OF bonds toge'iieI
Nth the amount of net earnings properly ap-
pdicable to this purpose will be applled ~ A'00I
the requirements for all improvements at pres
ont doomed desirable the most important OF
which are the following:
"rba construction of new and modern ferry
houses at Chambers and Twenty-thtrd sts-' the
purchase of new ferryboats. building new ana
modern depot and ferryhouses at Jersey CllS
and the Encouragement OF tracks ana teii''ii'ai9
at that point the construction OF he" "''S
through an open cut over Bergen Hlii 81 do ~
avoid the use of the present tunnel for paSse''-
ger trains important Improvements at sta'iolls
along the suburban lines, and various lilipio'e
nents along the line, including construction OF
second and third tracks. provision OF TOOLS anu
improvements for the shops, and the purchase Vi
,t,,,+ +braa thousand new freight cars hfty
-, ,aeserger coaches and one hundred new
locomotives" 90
Some Of the contemplated improvements re-
ferred to in the foregoing statement were o"'
lined in The Tribune day or two ago
The ,rice at which the new per cent bohdS
are to be offered for subscription 10 ''e io''~'
Of trust certificates, S715 and interest compares
with S11. the closing price yesterday lo' ,,''
Fries general lien per cent bends anu '0'2
tho last price for the first consolidated MOI '7"e0
eo,,,- Tho common stock, into which the new
do be COnNerIlpJe ''L .'' 49,
1oo3 has never yet touched that figure i'S
-, o,orI was made in January = l9o-' Wheh
;. o1d Of 49,. and it's highest price TINS year
- ,o5z an January Q. Erie common CIoSeu
Yesterday at 411s .z
Tho stock of all classes Of the Erie Hta'Hoau
connsnv is held by voting trust CONSISTING VI
7 Pierpcnt Morgan. General Louis i'|s
snd Sir Charles Tenant. This trust IS 10 nL con
+i,re for five years from December l. l0''
80 .horeaftar until the new first preferred
- sbaI have received + per cent cash oi''-
derd in one year, although the Fo'iis
,a,, in their discretion, deliver the stocN '' a.,
earlier date According to Poor MANUAL
80. =, ,,ro,ided that no additional mortgage
can he put upon the property nor lie ai0
of either class of preferred STOCK DE III
d without the consent of d maJorltS ol
49, toIa amount Of each class OF prele'Ie"
,...o,- ond Of such amount of common STOCK do
Ill no renresented at any meetings OF SlooN
,,oI1ars which may be called for the purpose
of voting on these questions the ho''e' -
class Of stock voting separately 80
VIII tbts statement as its apparent OASIS an
t.-.;,,,. r,7nror affecting Erie has been con-
s+nctAd in Wall Street within the last II" o"S .
There Is outstanding about SlI9,o"o- % -"
mon stock and nearly SfS''"''''" ~ ''i p
$3.50 stock hut only S16000,O00 of second pre-
ie'i' r, According to the story, a certain
. -,-zd Ctn -
Ill ,,uoun operator. Conceiving hinsSll 10 Ho {
o ,aqiti,natc grievance against the li'ei
1-;oa,,t in the Erie. and also being not aNeIse
| 20 turning an honest penny, saw III lhe FL II
! o,,d rreferred stock an opportunity i'l
| .claci17q his pride and swelling his purse ana
r,,,abt majority of this issue. at cost Oh less
| 49, G On0OnN The funds urgently heeue" ny
tho Erie could not be obtained except oE d oo''i
! ia and the issue OF bonds required the dS-
| + ot an absolute majority OF the second pre-
| farad stock the story went. therefore '"7
| -. Of that majority holding would ne III d
! 5 ,,oeition to effect settlement on private
+arp,e turning over his holdings - tAe controH-
| ;o, interests in Erie price sufficiently aooFe
/ - orl,at Iayel of 80 stock to enable nm 10
! oan 4 handsome profit-a profit Whlch II was
! r,r,ed he had secured and banked, as IL was
unlikely, that the directors would have an
oounced an approaching issue OF bonds unless
! +ho,- had been assured In advance that no op-
| s+ocIe would he raised to the plan. y leadlhs
! 5iaotor of the T"ie Railroad Company said
| yesterday afternoon however, that the story
! o,Id have no basis in fact as the assent or
| 81, tho voting trustees was necessary for rati-
| eootior Of the action of directors in voting 10
| 4Lor;7a the issue of the new bonds.