New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-01-09
SE4BO1RD BOND ISSUE.
Stockholders Meeting Called to
Ratfy s., 900 900 Proposal.

The Seaboard Air Line Railway Company has
sent notice 10 its stockholders calling for meet
ing in Petersburg. Va. on February TO- for the
purpose Of ratifying proposition issue 100000
OF collateral trust bonds, Of which $4,000
10 be used in taking up the $25OO,COo loan made
by The Bair-Ryan interests. Liberal stock bonuses
are offered TO stockholders subscribing for the
bonds. a circular accompanying the call for the
meeting sent out yesterday by President James NJ.
Barr is in part follows:
To the Holders Of Voting Trust Certificates for
Preferred and Common Stock Of Seaboard Air
Within the last few months an offer was made,
az the request OF the company, on behaf or certain
Line Railway $4,000 upon the security OF GER
tain bonds, stocks and voting trust certificates
BY the Officers of the company sucient to retire
its floating Indebtedness and to complete the Biz
70 furnish this money felt that they should have
company in order THAI they might investigate and
determine Its probable necessities for the present
tives accordingly elected directors and vot-
ing trustees. A considerable portion OF the amount
nainder is being advanced to take. they
mature, the obligations for which II Is reserved
cember l. 1908. under which the Morton Trust
given for the AMOUNT lent are payable june l.
1904. but the company has the right OF EXTENDING
S an peSG feg ieFa SET out IN ''
Such investigation the new interests In the
time has convinced them that the money they have
raised IS not sufficient TOr the present needs or
the company.
In addition to the loan arranged for in December,
II is thought advisable 10 secure for the company a
further loan or say. .Joo000. TO be made available
TO the company during the current fiscal year ING
proceeds will be used for the increased cost or
building the Birmingham extension, for current
obligations ana betterments and improvements. The
examination that has been made and submitted TO
the board OF directors leads the board TO recon-
mend an issue Of bonds to n authorized amount OF
100000 to bear interest at the rate OF per cent
per annum, payable semi-annually, 10 mature on
March !. 1891 and TO be redeemabe at par upon
any interest date at the pleasure of the company
Tho bonds are to be secured by a mortgage and
collateral trust agreement the Continental Trust
Company OF New-Yorlk. Holders of voting trust
certificates are TO have the preferential opportunity
OF subscribing for the new bonds TO the extent OF
10 per cent OF the par value OF their respective
holdings. the total par value of the certificates
outstanding being about $4S,iO0.0G0 Stockholders
the aggregate amount or about 5000 shares or pre-
ferred stock and $1,000 OF the common, represented
by voting certificates. These securities arc
owned by the company but pledged with the
Bnd will be released when the notes are PAID:
Under the proposal each stockholder owning loo
shares. who pays $1,000 for a bond, VIII get in al,
dition TO the bond. nine shares Of preferred and
sixteen shares OF common stock. Represented by
voting trust certificates.
Blair < Co, Thomas +. Ryan and T. jefferson
Coolidge, If, have agreed form a syndicate to
take whatever bonds the stockholders may fail TO
take. The contract provides, the circular states,
S5000 OF bonds shall be paid 10 the syndicate for
entering into the syndicate agreement Cthe bankers
agreeing make charge against the railway
company for their services in organizing the SNnd-
cate): that voting certificate holders, stock
holders and directors may become members or the
syndicate. and that the bankers may receive as
of the commission. securities proAts OF the
syndicate the syndicate may agree