New-York tribune., 1907-01-11
MORE P. R. R. SECURITIES
NEW $500, 900, 900 ISSUE.
Half Stock, Half Bonds-Rumor
That Plan Is to Reach Pacific.

sylvania Railroad Company mana cement to ask
the stockholders for authority to issue s2o0oOo.-
900 of additional securities one half in stock and
one half in bonds. was made in Wall Street late
yesterday afternoon. No hint Of such step so
far as could be ascertaned, was given to mem
bers of the Stock Exchange until after the close
OF business Pennsylvania stock sold from
140* to 1895 during the day. the trading in
the stock amounting to 66 800 shares
The formal announcement stated that at the
annual meeting of the stockholders OF the Penn
sylvania Railroad Company on March IL next
the management would ask for uthority to In
crease the capitalization. 1t continued:
Although the exact amount has not yet been
determined. ii is likely that the proposed in
Crease VIII be requested in the form of 100000
coo In capital stock and s1OO. 900, 900 in bonds
10 De issued In such amounts and at such times
as tne needs of the company require
Inc amount of capital stock already issued.
Win mat reserved for the conversion of the out
standing convertible bonds. very nearly ap-
proacnes the full sum authorized. There
ore Wnue IT may not be necessary TO issue any
part or the proposed new stock or bonds during
tne h current year yet the company desires to
nave authority from It's shareholders to make
suon issue when circumstances so require.
:, ne laws of the State of Pennsylvania provide
that capital increases shall first be authorized
by Majority of the SHAREHOLDER, and ths r,o.r
appropriate and convenient way for q companv
OF the size of the Pennsylvania Railroad Com
Pany, which has over 10000 stockholders. 10
OBTAIN such necessary authority is at the annual
meeting. OF which notice Is given to tho stock
poiuers; ana such has been the custom of the
rehhsyIVanla Railroad Company in the past
On June 10 last the late A. ]. Cassatt. them
president of the company, announced that the
Pennsylvania had negotiated a loan Of sJOOOo
Wo IN Paris. the loan being guaranteed az 10
principal and interest by the Pennsylvania Rail-
ROAD company He stated that the money thus
oo'aiheo was TO be used to pay for $4,000 steel
cars and 313 locomotives which were being con-
structed at a cost OF S42 600 OOO and to com.
piete water supply system At the sans time,
speaking OF the future requirements Of tn. COM
pany MIR. Cassatt said:
@ me Improvements now authorized and under
Co1I acl include all the heavy work at present
contemplated. with the exception of tbs adj
tional relief lines referred to in the last annual
report ana IL VIII not be necessary to proceed
with these for several years except 10 secure
tne rlght or way, which Is now being done Tha
company VII! not therefore. far as can now
pe IoTeseeh' nave 10 meet any large capital re-
qulrements for yea-s beyond what viii
be necessary to pay off the $50 100000 of notes
maturing November 1. 1907. and to provide the
money needed after the close OF this wear ro
TUnp'ets ,,ra one & New York terminal This expendi
ture' winch VIII be spread over the wears 1907
ana ISo~ Is estimated at S40OOOOOO
On behalf of the Pennsylvania management l,
have feresesn when he mad. his statemens
the recent vast increase of the company. b,,sf-
ness and the required increase of facilities
since II had been necessary TO contract for
l'uo additional cars. TO cost S1aOOOOoo after
the $4,000 cars mentioned in Mr. Cassatt'. re-
port had been paid for
The company's annual statement II was said
would be sent to the stockholders three weeks
in advance OF the March meeting to give op-
operations in 1905. The report made TO the In.
terstate Commerce Commission for tv.Iye
months ending June 3o last showed that thu
gross earnings OF the entire Pennsylvania .vs-
tenn IN that period amounted to about sz7e.
100000 and that the net earnings wer. ox,r
SS4 100000
The announcement Of the Pennsyrvania.s COM
ing increase Of capitalization follows CLOSELY on
similar announcements by other large railway
companies. 1t was understood that recent sales
OF Baltimore & Ohio. Chesapeake a Ohio and
Norfolk & Western stock by the Pennsylvania
had brought at least s5O.OOOooO in cash into the
systems treasury.
The Atchison stockholders were informed
about two months ago that they were 10 b.
asked at the annual meeting TO authcrizs an
increase of $esOOOOOO In the company. capital
stock. and the directorate decided 70 fs,u.
S25oooOcO of the stock as authorized
Since then an additional block of s6OOOoo0O OF
Great Northern stock has been authorized.
The Northern Pacific stockholders a few
weeks ago authorized additional issue Of
S95oo0oOo of stock. and SOS 100000 of the issue
is on the market. ST. Paul stockholders in
October authorized additional issues OF SIS.
100000 common and $4,000 900 preferred stock
Recently the ST. Paul management has issued
over S66ooOOO0 Of the preferred and over
SS3 O6O0 600 Of the common stock
tBy Telegraph 60 The Tribunal
Philadelphia. JAN 1e.-An announcement of
tha