The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-07-20
HUNDRED MILLION STOCK.
Hartman Tells Why the Southern Pa
cific ShouId Issue So Much.


Today the vote of the stockholders
of the Southern Pacific road will be
taken on the proposition to increase
the CaIital by the issue of $4,000
| 900 additional preferred stock emit
tied 10 z per cent Eoncumulatiye div
bends.
The object of the issue is thus de-
scrjbed by E. H. Hartman, president
of the road:
Large expenditures have been made
in recent years, as stated in the an
nua! reports, for bezt+rment5 and ad-
ditions to existing lines. new equip
me- J, new steamships, real estate and
otheL property, the construction of
wna-v es, docks, Gle yarors and other
improvements at Galveston, the con-
struction and advances on account of
construction of additional lines. and
for other corporate purposes: and, as
shown by such reports, these expen-
ditures were met chiefly from earnings
and loans. In order to provide capt.
| tai necessary to discharge all float
| ing debt and for all additions. and
betterments authorized and contem-
plated during the next years and for
other corporate purposes, the issuance
of $40,0O0,000 at this time is deemed
expedient.
1.-The proceeds from the sale of this
stock, in addition to prviding for the
needs above mentioned, will enable
the company to refund bonded oDliga-
lions maturing during the next three
years, amounting to over SOS, 900. 900.
on a much more favorable basis of
credit, and leave over 100000 of
free and negotiable assets in the
treasury"
Conditions Set Forth.
In the official call of the meeting
1t is stated that this additional pre-
ferred stock shall be issued and sold
from time to time, to such amounts
and in such manner as the board
of directors may authorize and deter
mine, but at not less than the par
value of the shares: that it shall be
convertible into common stock. share
for share, at the option of the holders
at any time; and shall be redeemable,
at the option of the company, on or
at any time after the first day of July
1905, and before the LIST day of July,
1910, at Sis per share.
As soon as practicable after the
adoption by the stockholders of the
there will be issued $40,00O,00O of
this preferred stock. Each sharehold-
er shall be entitled to subscribe on or
before Sept 1, 1904, and not there
800 per share for every five shares
registered in his name at the close of
business July IA.
Payments for new stock are to be
made in three installments, viz: SIS
per share at the time of subscrip-
ton, $25 Oct and $50 Dec. 1, 1904,
said stock to carry dividends from
July 1, 1904, il declared.
Warrants are to be issued to stock
holders of record July IA transferable
at the option of the stockholder. On
surrender of the warrants and pay
ment of the first instaIlment, assign |
able receipts will issue, to be pre-
scented to the assistant treasurer at !
the time of the payment of the sec
ond fnstallment, whereupon the as
sistant treasurer will note thereon the |
payment of the second installment, |
and return such receipts, and upon |
payment of the third installment, full |
paid stock certificates will be issued |
in exchange for such receipts.
Stockholders entitled to subscribe |
for fractions of shares shall, upon |
payment in full thereof, receive scrip |
convertible into full-paid stock when |
presented in sums of 500 or multi |
plies thereof; but such scrip shall not (
draw dividends.