The Providence news. (Providence [R.I.]) 1891-1906, 1903-01-08
TO DOUBLE
ITS CAPITAL
Pennsylvania Railroad TO En-.
gage In Vast Project.
GREAT SCHEMES UNDER WAY.
Funded Debt May Also Be Increased to
S400,000,000 The Money May
Last Five Years.

Philadelphia. Pa, Jan. s.-By far the
most stupendous increase In capital ever
made by any railroad corporation. is
planned by A. ]. cassatt, president Of the
Pennsylvania railroad. and his asso-
ciates. At the annaul meeting OF the
Pennsylvania railroad, on March 10. the
stockholders will be asked to authorize
an addition TO the capital stock OF the
company TO make the aggregate $foo.0o.-
O0O and an increase OF the bonded indebt-
edness TO like amount
This means that authority is 10 be con-
ferred upon the board or directors abso-
luteiy 20 issue. as II may from time TO
time order and prescribe. securities to the
enormous total of s+ss, $40. 7so par value.
The present capitalization OF the COM
pany as represented by stock and bonds
outstanding, is sses. 4eo, ,e4o.. After March 10
the total authorized capitalization OF the
Pennsyivania railroad common stock and
funded Indebtedness will be ss0o.ooo 900.
FORMAL NOTICE ISSUED.
Formal notice 10 stockholders concern
Ing the contemplated increase In capital
is given by Lewis Nelson. secretary Of
the company. In explanation OF what Is
proposed the following statement was
given ont by the company late this after
noon:
The object OF the notice to stockhold-
ers is to provide sufficient working capl-
tai for the future. and give the board the
power TO issue the same, from time To
time as the corporate needs or the COM
pany may require. The present outstand-
Ing capital stock is about two hundred
and three million dollars. and about thir-
ty-fve millions more have TO be reserved
for the convertible bonds that were is
sued last year. making about two hun
dred and thirty-eight millions in all. and
leaving only about thirtee millions OF
surplus stock available.
'It IL, therefore. deemed prudent 20 do
now what was done about thirty years
ago-that Is. in is3-when the stockhold-
ers practically authorized the stock 10 be
increas sed 10 about double the amount then
outstanding TO be issued at such times
as II may be needed. and also gave the
board the power 10 issue bonds 10 the
same aggregate amount. from time TO
time. but not in excess at any time OF its
outstanding capital stock.
NEEDS MAJORITY VOTE.
with the present policy OF the COM
pany. namely. that OF procuring the capt.
tai needed from the shareholders @ THOUGH s,n
that this latter power will be awaited OF,
but as IL requires a majority vote OF The
entire body OF shareholders to authorize
the Increase OF capital stock and increase
OF Indebtedness, II Is deemed better that
action should be taken on both matters
at the annual meeting.
ut will be seen that no actual increase
of either stock or bonds can be made ex-
cept in pursuance OF formal action OF the
board of directors. and only at such times
as the needs OF the company may require
the increase"
These figures do not represent all the
money the Pennsylvania railroad has
used For betterments and permanent
on its railway system there was expended
in 1901 ont OF earnings SO. 78,s sS3 Last
year n similar expenditure probably ex-
A large proportion OF the s14s, ,oo0 oo0 new
capital used by the Pennsylvania during
the last three years went FOR the pur-
chase OF stocks Of other railroad com
panies in furtherancc Of President Cas-
salts policy OF buying controlling inter.
ests I'm competing systems. A great part
Of the oSs ash NoroE 7 and Western sns
Chesapeake and Ohio stocks, owned by
the Pennsyvania.
The following figures show the actuai
new capital the road has had during the
last three years:
New stock. par value. ............ s22, 1876 80 80
Funded debs increase............ 44sozo
total '''''''''''''; ,oo, ;oro,,''''''''''''
From Syo50o. 500 stock sold at $50 $50, 500
Stock issued for p, w. & B.. j, 5s2 6es
Funded debt increase ......... 2sS 7S1
Total .......s.s''s.... .'''''''''''' ~"-'-0''iS'
Convertible sis per cent bonds 5000 os, 40 ~,
stoch Issued FOR p e. n W. 1000 900
rota, SCI. .ooo ON
PURPOSE NOT STATED.