Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-12-18
BIG ISSUE COMING
st. Paul to Offer Additional
Stock to Shareholders.
HUNDRED MILLION MORE
Announcement Expected in Wall
Street Comes at Last.
PROVISIONS OF THE ISSUE
Unusual Interest in Deal Because
Road Intends ito Parallel the
Northern Pacific.

NEW YORK, December 1S.-Busness
| had closed on the stock exchange yester-
! day when directors of the Chicago. Mil
waukee and ST. Paul Railway Company
announced that, during a special meat
ing. they had decided on an Offering of
500, 600 900 of the roads stock to the
shareholders.
Wall street had been living in expec-
fancy of this news for several weeks ow-
ing to the remarkable advances scored by
st. Paul shares. which have at times
jumped up five or six points in a week
and disturbed the market, while the
other stocks were declining.
St. Paul's financial plan. in it's principal
features, resembles the stock issues made
recently by the Hill roads-Great North
ern and Northern Pacific Shareholders
will obtain the stock at par. payment TO
be made in six semi annual installments.
The issue consists of 80 per cent of the
present outstanding preferred stock, or
about S66,32I, 100. and % per cent of the
outstanding common stock, or $50, 163. GOO.
Terms of ISSUE
These blocks of stock are offered to
stockholders of record of December 10.
The first payment, consisting of 10 per
cent is to be made on or before De-
cember 81, although the privilege of
subscription is extended to foreign hold
ers until January 10. Additional pay
ments are to be made on the following
dates: June I, 1907, 10 per cent; Decem-
Der ], 1907, 20 per cent: June l. 1903, 20
per cent; December /, 1908, 30 per cent,
and March ], 1909, Il per cent. Pay
mcnts made viii bear interest at the
rate of ) per cent until the entire amount
of the subscription is paid in, when the
stock certificates will be issued. Neg0-
table receipts will be given when the
initial subscription is paid
There are two rather unusual features
in the announcement, which caused con-
siderable comment
One is the fact that the shares are is
sued only to stockholders of record OF
December 10, which gives only two days
in which transfers can be made. 1t is
thought this may lead to temporary con-
fusion in accounts. The other is that
the first payment is eXacted on the last
day of the present year, rather awk-
ward time. being Monday, the day before
New Years.
Improvements Planned.
OF the entire amount to be raised by the
sale of stock, about s75O0O,oOO is to be
expended in construction and equipment
for the extension of the ST. Paul from
Evarts, S. D., to the Pacific coast. The
remaining $25,0OO,OO0 will be reserved
for contingencies,
At the meeting the only directors abb
sent were William Rockefeller and II. H.
Rogers.
Unusual interest attaches to the st. Paul
issue at the present time because the
road, which is controlled by the Standard
Oil interests, intends to parallel the
great Hill system, Northern Pacific,
which only few days ago issued $685.
100000 in stock to raise funds with
which to extend it's mileage and facili-
ties; in other words, to fortify it's posi-
ton against possible competition and en-
croachments from it's prospective rival.
The St Paul system has at present out
standing sos, $4,000 In common stock
and $4S,374,40 in preferred. At the re-
cent annual meeting, however, there was
authorized an increase of $4,000, 900 in
common and the same amount in pre-
ferred stock, the greater part of which
goes to make up the new issue.
Announcements of new stock offerings
were made in the last week or SO by the
Great Northern and Northern Pacific
amounting to S153,000,OOO. Combining
this sum with the ST Paul's issue a to-
tai of $253,O00,000 has been offered to
shareholders of the three railway cor
porations.