The San Francisco call., 1905-03-08
Local Bond Market.

Ths stock and bond circular OF Reazslton q
CO ssyss
Trade conditions generally good.
though. is natural at this season. quiet. but
bosiness Is, better than is usual at this time
q the year The money market is quiet with
a Plentltul supply, ana rates easy; in con
business IN bonds both az the Stock and Bond
Exchange and through outside channels.
The event OF the month in the bond busi-
ness was the announcement Of the Southern
Pacific Railroad Company's first refunding
mortgage. $751; .0eO. 600 Of which issued In
New York and immediately placed without diff
nculty and offered 10 investors at 81 y. These
bonds bear interest al the rate Of per cent
per annum. payable January and July l, and
ere cue January I, 1855. All any part
subject 70 redemption at l05 and interest on
January ]. 1910 or on any interest date there
after. They coupon bonds OF $1,000 and
$500 each, with privilege OF registration as TO
principal only. Coupon bonds exchangeable
for registered bonds. Registered bonds re-ex-
chRngeable for coupon bonds. Principal and
interest unconditionally guaranteed by the
s @ oa5 6ec -a os 1ao s Issue,
bonds are secured by mortgage all the
railroads and the franchises and property ap-
purttnant thsreto now owned by rhe South-
err Pacific Railroad Company in the State
OF California and Territories OF Arizona and
New Mexico. subject only 10 the present mort
cages, under which no further bonds VIII be
ISSUED and which viii not be extended at
maturity. and Tor the refunding or redemp-
ton OF which g sufficient amount OF new FIRST
refunding mortgage gold bonds are reserved
The 6rst refunding mortgage viii therefore
rsilroad property now owned by the company.
OF the SsS $50 500 prior lien bonds. S44 81. 900
mature or have been called for redemption on
or before October ]. 1905. OF the remaining
S49 los. SEQ bonds. SS5 $50 600 mature during the
next labour1 seven years leaving only s13,
as. 300 bonds 20 mature thereafter The total
authorized amount OF the mortgage is $780,
600 000 10 be issued as follows: S93. $50. 500 10
refund OF redeem ike amount OF prior lien
bonds Sl5. 000, 900 for use in refunding or re-
ceenling prior lien bonds. and balance not re
oUired for such purposes TO be used for other
purposes Of the company. S25. COO on de-
rnand OF the company, and S26, 81, 500 for con-
struCtiou. betrerrnents. additions. etc. For the
fiscal year ending June So 1904. the Southern
Pacific Company reported surplus after all
charges Of S. SIS, ,zs3.
Opinions vary greatly as to whether these
bonds VIII be taxable in the State OF Cali
fcrnis and II is probable that before a definite
decision can be reached the matter will re-
cuire decision Of the courts.
Business at the Stock and Bond Exchange
curing February was active. especially IN
bonds Of which 81, $50 900 changed hands,
sgainst 81 65T go in January, with sales Of
35.332 shares. against So 500 in January,
decided falling OF from the activity OF that
month. but still above the average,
In bonds usual. large street business
was done in those listed on the board, which
cid not show IN the published records. and an
exceptionally large business was transacted in
unlisted bonds through outside channels.