Evening journal., 1903-10-30
BOND SALE FOR
P, B. & ". LINE.
SIoooo,ooo Issued by the
Pennsy to Buy Road Con
trolled BY 1t
KEPT SECREG IN PHILADELPHIA
Financial Circles Hold That Transao-
ton Indicates Improvement in the
Investment Market-securitie viii
Be Sold Through Syndicate.

The Pennsylvania Railroad Company
has ordered the issue Of bonds to the
amount Of S2o.oOO,OoO by two Of the
lines which it controls-S1o, 100000 by
the Long Island Railroad Company and
S1O.OOO,OOO by the Philadelphia. Bati-
more and Washington Railroad Com
pany. The sale of the bonds has been
placed ia the hands OF Kuhn, Loeb &
Co., of New York, financial agents Of
the Pennsylvania in that city. Penn
sylvania officials decline TO discuss the
matter or to say how the money real
lied would be expended.
The story sent out from New York
yesterday that Kuhn, Loeb & CO, had
bought S20,0O0,OO0 of Long Island rail-
road 46-year refunding mortgage As
and Philadelphia, Baltimore and Wash
ington railroad 40-year 4 per cent. gold
bonds, Sl0,000,000 for each company,
was promptly denied at Broad Street
Station, Philadelphia. Captain John p.
fGreen, first vice president who has
charge Of the financial operations OF
the company, sent word that the mat
ter was all news to him. Later the an
nouncement was made that ali infor-
nation as to the bond sale must come
from Kuhn, Loeb & Co.
A New Issue.
A person interested in the purchase
Of the bonds announced, however. that
the securities referred TO We're OF a new
issue in both the case of the Long Is
land and the Philadelphia, Baltimore
and Washington, ana that no more of
the unified mortgage bonds OF the Long
Island would appear.
The authorized issue Of the new
Long Island bonds amounts to S45, 5,00O.-
600, and viii take the place of the uni
fed 4 per cent bond issue of that
amount issued i'm 1893. Only S9,82S 900
Of the old issue is now outstanding and
the balance viii be cancelled
Proceeds from the sale of the S10,-
100000 bond issue of the Philadelphia,
Baltimore and Washington Railroad
Company viii be also used for inn
provements, as in the case Of the Long
Island road. While the property Is not
a part Of the Pennsylvania railroad
1 proper most of its outstanding stocl
is owned by that company, and it.
road is used by the Pennsylvania
main line between Philadelphia, Bal
timore and Washington. The author
lied issue of these bonds amounts &c
S20,00O,000, but 100000 viii be held
In the treasury, and of the bonds SO
held S4,900,000 viii be reserved to take
up the old Philadelphia, Wilmington
and Baltimore debonture bonds now
outstanding. II is understood that
about par and interest is paid to the
Long Island Company for the present
issue and 1O5 and interest to the Phil
adelphia, Baltimore and Washington.
Considered as a Good Sign.
AS this is the first bond purchase
announced Of any Importance for some
time, It was taken in the financial dis
trict as an indication of an improve
ment in the investment market. While
Kuhn. Loeb & Co. purchased the bonds
n syndicate will be formed through
which the securities win be sold. 1t is
understood that q large part Of both
issues win be distributed abroad Phil
adelphia bond houses are also sub
scribers, but to what extent could not
/ be learned.