The daily morning journal and courier., 1904-02-04
LONG ISLAND R. E. BOND s.

The Pennsylvania railroad is rapidly bringing it's headquarters eastward to
 New York city. and will soon have on
 Manhattan island the greatest railroad terminal in the world
 Manhattan island does not offer room enough for the complete eastern devel- opment of the great Pennsylvania sys- tenn, and both greater New York and
 the greater Pennsylvania railroad must
 move eastward over the island of Long
 Island.
 It is announced in this mornings is-
 sue that Messrs. Kidder, Peabody & Co. in Boston and Messrs. Kuhn, Loeb
 & Co. in New York will open subscrip- tons on Tuesday, February g, for $10,- 100000 Long Island R. R. Co. per cent. refunding mortgage gold bonds,
 payable March 1, 1949, principal and interest guaranteed by the Pennsylva- mia R. R. Co. The bonds will be offered at 99 and interest.
 It appears by to-day's advertise ment that of the outstanding Sl2,0O0,OO0 stock of the Long Island R. R., $6,- 797,000 is owned by the Pennsylvania R. R. Go
 The Wall Street Journal says: Penn sylvania interest in Long Island dates
 back some years, but the issue of re- funding bonds announced by Kuhn, Loeb & Go. is the first direct evidence in Long Island finances of Pennsylva-
 nia's hand The Pennsylvania Co., was critized in all the moods and lenses originally for buying control of Long Island. It has taken Pennsylvania some time to commence working out it's plans for the property, but the pres ent issue of bonds may be regarded as the commencement.
 The total issue under the new per cent. refunding mortgage due in 1949 is limited to $45,OO0,OO0 of which $26,- 6O5,000 are reserved for refunding, s1O,- 1 100000 are issued now for the general corporate purposes of the company, and $8, ,395, 900 are to be issued hereaf- ter. The purposes for which the s1O,- | 100000 bonds now issued are to be used as follows
 l The reconstruction, at joint expense with the City of New York, of the ten miles of track between Bay Ridge and l the terminal of the New York Con- meeting railroad. The route to be used
 for local traffic and for a large freight
 traffic between Pennsylvania and New Haven.
 | The reconstruction of tracks on At | lantie avenue, in Brooklyn, now in
 progress, at joint expense with the l city.
 | .eI,4 s7 Ar.,, minals; additional running tracks. l Additional equipment for both steam and electric service, etc.
 l In a letter to Messrs. Kuhn, Loeb & 1 Co.,, President Baldwin of Long Island points out that the Long Island road, with the completion of it's tunnels, will form the link between Pennsylvania land the New Haven road, for both l freight and passenger through traffic. | to and from New England territory. | The company has for seven years used l all it's surplus earnings for betterments and has greatly improved it's property. In the last fiscal year, expenditures | for new property of all sorts amount l ing to $S04, 701 were made from surplus l income In that fiscal year the surplus rover cndf26S WdS @oU0,occ ETeS. bdlu- win thinks that from the character of the business of the company, con 1 tinued increase in volume and earn ings on a rapid scale is to be looked for.
 Long Island is a road that will all
 ways have to. take care of very
 heavy local business, and it's territory
 seems destined to become the greatest residential territory within easy reach of New York city. It is simply a ques- Ition of providing sufficient facilities,
 and the proceeds of the new mortgage will suffice to do this. Should the new
 mortgage tax bill become law, bonds
 of railroads in New York state would
 become tax-exempt, which would add very materially to their value. This | is contingency in the case of the new Long Island bonds which should be
 borne in mind by intending investors.