New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-02-20
PENN. ISSUE ANNOUNCED
SELLS s6O,0O0,OO0 NOTES.
amount VII Meet Al Financial
Needs for Year.

The report of Monday that the Pennsylvania
Railroad Company would soon issue about 500
100000 of new securities became a reality yes
terday. when the company announced that it
had sold to Kuhn, Loeb & Co $60l000,O00 three
year . per cent notes, secured by car trust.
water bonds and other satisfactory collateral.
The official announcement added:
The Pennsylvania Railroad Company an
nounces that it has sold S..lOOOO00 three-year
. per cent notes, secured by car trust, water
bonds and other satisfactory collateral
This sum- with the proceeds from the sales
of stock OF other companies, heretofore made,
will meet all the financial requirements of the
company this year for construction expenditures
and otherwise, including the New York tunnel.
ana also the S00OOOOOO Pennsylvania company
notes maturing November l next. so that il
will not be necessary to issue this year any of
the increased stock of the company or any of
It's bonds which the stockholders have. as a
wise precaution been asked to authorize at the
annual meeting to be held on March l. next.
The notes We're offered yesterday afternoon
by the bankers, at prices ranging from 99Ia and
interest. for moderate amounts, to 90 and In
terest for large blocks. The notes are deliver
able on March 10. and payment may be made in
full on delivery or at the option of the pur-
chaser 20 per cent on that date and 20 per cent
monthly thereafter until the full amount is
paid in. Subscriptions were coming in SO rap
idly, 1t was said late yesterday afternoon that
it was a question whether any of the notes
would be available for Offering abroad; If any
remained unsold. they would be offered TODAY
in Europe.
The late President Cassatts statement Of last
June, referred to in The Tribune yesterday. esti-
mated that the Pennsylvania capital REQUIRE
ments for this year would be about 100000 600
OF which S5OOO0O0O would be needed for taking
up equal amount OF notes maturing on No
vember l, 1907, and $4OOO0OOO for use on the
New York terminal the disbursement Of the
latter sum, however. being distributed over the
years 1907 and 1905
The notes just sold viii ret the company a
little short Of 100000 after setting aside the
amount needed for taking care of the $4,000
600 notes due November l, which would leave
about 100000 to be supplied from some
source for completing the 1907 payments for ac-
count of the terminal construction work.
The Baltimore & Ohio, Norfolk & Western
and Chesapeake & Ohio stock sold some time
ago by the Pennsylvania Railroad Company TO
Kuhn. Loeb & Co, amounting In total value to
many millions of dollars. has presumably not
yet been entirely paid for. The Baltimore &
Ohio holdings have been resold by the bankers
TO the Union Pacific. but whether or not that
company has yet made full payment for 1t has
not developed The probability is. It is believed
IN Wall Street. that payment is being made in
instruments to the Pennsylvania. and that the
money which it Will receive this year
count of its sale Of Baltimore & Ohio Chesa-
peake & Ohio and Norfolk & Western stock will.
with the $1O.OOO.OOO from the new note issue.
supply the amount to be applied in 1907 to con-
struCtiOn work IN this city.
The recommendation on which the stock
holders are 10 act at their annual meeting for
authorizing the issue of $1OOOO0O0O each of
new stock and bonds was the proposition OF the
late President Cassatt. The announcement that
none OF the new stock or bonds Will be issued
this year IS taken by Wall Street 10 indicate
that the Pennsylvania. under the presidency Of
AIr McCrea, is likely 70 follow a conservative
policy. in line with that recently announced by
the New York Central, the ST Paul and other
important roads