The sun., 1906-02-11
MANY NEW BONDS FOR SALE
,,IJ SHORE TO ISSUE S35, ,OOO, 900 I,
Probably DEBENTURE 4S.
so,,bern', $500 900 900 Is the Other New
Issue, OF which sls 900 900 Is to he
PAT out Immedia ely 800 900 900
of Telephone Bonds-Many Securities
,..ucd since the First OF the Year.

rhs, two new bond issues, aggregating
.,., m, 900, are soon to be arranged for
.,S that a syndicate Of bankers Is about
"a purchase siOOoOo,ooo if not the whole
.sn o,o 900 Of an issue authorized a
tor months ago became known in Wall
Greet Yesterday. The two new issues are
..ai 90 issue Of Lake Shore and Michi-
s,n southern bonds and 500, 900 900 OF
sare,opment and general mortgage so
.a,, per cent. bonds Of the Sout hern
u,ilvay which the stockholders are called
,,on TO authorize at a special meeting in
pichrond on April ls. The third issue is
no American Telephone and Telegraph
ronnany convertibles, of which $3.50, ,00O, 900
..re authorized last December. These
,hre, issues are in addition to about $780,
1000 OF new stock ana $4,000 900 new
,onds authorized and in many cases issued
nnce January 1, 1908
No details concerning the issue Of $685.
mno Lake Shore bonds could be OBJ
aimed Yesterday except that they will
,rohably be debenture 4s and are needed
"a secure funds to pay for the extensive
improvements now being made by the
lake Shore. j. P. Morgan 4 Co. will prob
sbly purchase the bonds. A member OF
,he firm said yesterday that negotiations
we're not yet completed.
The last Lake Shore issue was in Novem-
ber 1903. and consisted Of $50, 900 900 de-
hent,res Of these $40 OOo 900 were sold to
J. p Morgan d Co. The proceeds from
the sale Of large part of them went to pay
for the Lake Shores holdings Of Reading
dock
bonds j P. Morgan Il Co. have agreed to
p,,rchase SIS, 900 ,OOO which will be issued
Immediately, and also the first s. 900 900 Of
aid bonds to be put out shortly after the
arst issue. In communication to j. P.
Morgan, Cha rles Lanier and George F.
way President Spencer says that the ex-
sting financial condition Of the company
i, such as to justify the creation of the new
mortgage and the immediate issue Of SIS
10000 OF the new bonds without disturbing
the dividend now paid on the. preferred
stock He calculates that for the present
year there will be surplus income OF about
Guiding the interest on the new bonds and
the preferred dividend. The purposes Of
the issue are given as follows in a circular
published yesterday:
Fifteen million dollars will be issued i'm
nediatey TOR the following purposes S.e82-
ore made and charged to capital; 81. 500. .oo9
70 refund investments In securities OF and
advances to subordinate companies hereto
2 so 0f faded
double track, revision OF grades, new yards,
shops, dc.
or II the sAs following purposes Isl .i5s. 90 to
les acquired, for which no provision g made
the eensolidated mortRase 90 eooS cso tS
trust IS !; SIS ooe 900 to retire. es they mature
in the next fifteen years, equipment capital
g @ sSPs 81 certain Il n.s scaS5s W. Ssss "a
nay not later than July /. 1903, for the eastern
division of the Tennessee Central and i'm
mediate improvements.
ions are made there viii be left ses .e34 900,
thich viii be used to provide for future
nqnisitions and betterments. M but to be Issued
tortgage and to be provided for as follows:
d each year not exceeding Is. 0oO. 600 to DO
i9 snd ap and neT .o
Exchange for first mortgage bonds. not eH.
oeing in amount the actual cost thereof
" "a airoads and terminals hereafter &C.
CURED.
The American Telephone and Telegraph
Company announced yesterday that It's
new bonds will be taken up BY j. P. Morgan
Co., Kuhn, Loeb 4 Co., Barring, Magoun
4 Co, and Kidder. Peabody d Co. The
bonds are convertible into stock after two
years and not moro than twelve years.
statement issued yesterday by the COM
rany says.
The issue is made necessary to provide
he treasury with funds to continue tho policy
Of expanding and developing the telephone
business TO meet the demands OF the people
Of the United States and for a comprehensive
snd national service.
The company has been expending close on
10 s?5,c,o,Ooo per annum for the extension
n lis service and the development Of its
business. and this capital has been raised
hitherto hv increasing the capital stock.
which a. the present time, amounts TO al56-
'sl 500, upon which il Is paying a dividead
~ - per cont. per annum
The American Telephone and Telegraph
'nppaty builds and operates that branch Of
n" telephone service known as long dis
lance 1t ls also interested in the stocks and
securities Of the several Bell telephone COM
pahe-, Nhp obtain licenses from it under
Thch the laid companies operate.
Il is not true that these bonds are issued
'or the rnr2os" Of obtaining funds to acquire
any OF he sO-called independent companies.
CIarenc" II. Mackay. president Of the Pos
al telegraph Company, has been large
Purchaser p' the stock OF the American Tele-
nAona and Telegraph Company during the
a., }esr aui 1t is nov said that ho holds
''1s" ON 10 10000 shares
Il i understood that SIS 600 600 of these
told> "il be put out in short time
ne Bell Telephone companies have been
1o!He large amount of financing Of late.
Sto!d IN He Sun a few weeks ago half \
Dozen Of the Bell companies have increased
'selT Capitalization since last October by
eoout KS 0o0,CrO, This is in addition TO
The sl5Ooc0,0o0 bond issue of the parent
company
Ii addition to these interests in the cap
iAIzatlon Of the various Bell companies
,hes other allied concerns have within
me last few days announced capital in
oteas"s which have not already been noted
N lHf SrH The Western Electric Com
eany. which is the Bell telephone manu-
sctqrng concern, has enlarged it's capital
sock by SO 600. The PENNSYLVANIA
eel Telephone Company and the Bell
leephone Company of Buffalo have each
aaaed about 81 900 900 to their capitaliza-
'ion Of late.
But the telephone companies are not the
eohy ones which have been flooding Wall
sS.Feet with new securities since January 1.
some of the railroads which have added
materially to the already emo rmous quantity
eea!rltles during the month and a half
sace the hrst OF the year are the Missouri,
hansas and Texas, with new general mort
gage OF $40 900 900; the Delaware and Hud-
soh, with a sl4o0'o o0) convertible bond
sue the Kansas City Southern, with
ccvN2co Improvement mort gage, and the
sahadlan Pacific, with SEQ, 900. 900 Of new
nocR The capitaliZa ton of the Canadian