The Savannah morning news., 1904-03-09
SEABOARD FILED
HEAVY MORTGAGE
TO ISSUE S5yooo,ooo BONDS
IN ACCORDANCE WITH LOAN AU-
THORIZED BY DIRECTORS.

Bonds Arc 1000 I'm Number and
Valued mt $1,000 Eaeh-Are Col
lateral Trust Per Cent Gold
Coupon BOnds-Interest Payable
Semi-AnnuaIIy Bonds become
Due March L, 1oO7-Win Complete
Atlanta and Birmingham Branch
immediately.
A mortgage to secure the issuance of
s., 900, 600 worth of bonds of the Sea-
board Air Line Railway was filed in
the office of Clerk Carr of the Superior
Court yesterday afternoon at 2 o'clock.
OF this amount all but the commits
sion of the syndicate win be in the
hands of the railway company in cash,
for use in improvements and extern
sions of their lines.
The mortgage was filed by Attorney
]. Randolph Anderson. 1t is made to
The Continental Trust Company Of
New York, and Mr.. Willard V. King,
who are made the trustees for the
bondholders. The bonds are 1000 in
number and are for $1,000 each.
The bonds are mortgage and coll
lateral trust gold coupon bonds, bear
ing interest at per cent, payable
in gold. They are dated, March l,
1904. and become due on March l,
1907. The interest is payable semi
annually, on the first days of Sep
TENDER and March. Interest begins on
April Is of this year.
Covers All Property of ROad.
The mortgage covers all the property
of the road. all its branch roads, and
all improvements which may be made.
The right of ways now held, the road
bed, bridges, and all property. both real
and personal, of the company, are
mortgaged to secure the bonds. All
roads constructed, or TO be constructed
in the states of Virginia, North car
DINA, South Carolina, Georgia, Ala
bana and Florida are included, as are
also all branch lines of railways that
hive been absorbed by the Seaboard.
The former issues of bonds, on GER
tain properties, are also pledged 10 Sc
cure the mortgage, with the exceptions
Of those on which there is prior lien.
Only such exceptions are made in the
mortgage as were absolutely neces-
sary, owing to liens of other trust COM
panies, the principal one OF which was
a large Baltimore concern.
The company reserves the right to
substitute cash, at any time. for the
following bonds, at the following rates:
Atlanta. Suwannee River and CUR
bonds at so per cent. of the par value
of the principal Florida West Shore
Railway at So per cent. of the par value
of principal: Seaboard Air Line first
mortgage, fifty year, per cent, gold
bonds al rs per cent. of the par value
Of the principal, and Atlanta and Biz
mingham Air Line Railway at 30 per
cent. of their par value.
Means Extensive improvements.
The issuance of bonds is in accord
ance with the action of the board OF
directors authorizing a loan Of $4,000
900 for the purpose of extensions and
improvements. Several improvements
are contemplated, but the principal in
terest in view is the completion of the
Atlanta and Birmingham branch OF
the railway. This line will be at once
pushed through from Atlanta to Birm-
ingham. and it is the intention of the
company, if possible, to begin the
schedule in July next. The money
will be first applied to this branch,
as its completion will mean consid
cradle increase in both the gross and
the net earnings
II has been estimated that the earn
ings of this branch should amount
the first year after completion to ST.
1s1,000 and that the completion of this
line should add to the earnings of the
balance of the system TO an additional
SLIPS, 600. If this estimate prove cor
rect the gross earnings for the next
fiscal year should amount to SIS. 643, 900
and the surplus, over fixed charges, to
Sl,792, 800. These estimates do not in
clude the interest charge on the new
collateral trust SIS.
The interest on the new bonds is
payable in gold at the stated periods,
with no deduction for any tax the rail-
way company may have to pay or re-
tain thereon. Copies of the mortgage
were filed yesterday in all counties Of
all states through which the Seaboard
lines pass.