New-York tribune., 1907-05-28
NEW ROCK ISLANDISSUE
Offering To Be Made at 81, Which
WW Net i Y-8 Per Cent.

Cnlcago' RocF Island & Pacific Railways s10.-
o"ooo hrst and refunding 4 per cent 30 wear bonds
VIII be offered to the public 81 and at that price
they Will return 47s per cent TO the investor In
view Of the current position of the bond market
the ROCK island company made remarkably good
terms with the bankers. Speyer & Co. and that the
issue is offered for subscription 81 no way re-
meets anything wrong with the credit OF the COM
Pany' AS n matter OF fact the Rock Island is in
better financial position to-day than at any time
III lts history, ana It's decision to pay its necess-
ues by a long time obligation rather than by an
issue of short term not only indicates com
mon sense on the part OF the road and it's bankers
but reflects great confidence in the future of the
property by men who known to be solid prac-
ttcsI business men
When Speyer Co. took hold OF the financial end
or the Rock Island two years ago they made an in
Vestigation of the company that convinced them
the road financially sound but needed large
expenditures on the property get tho full bene-
Mt Of the traffic offering and 10 grow up 10 the
great development of the country in the South
west To-day Speyer & Co. satisfied that the
Rock Island in no way has disappointed their
earlier Impressions. and they naturally take ex-
ception to the efforts being made in certain quar-
ters TO injure the credit OF the company
False reports of the price a which the road sold
its bonds have been in circulation in the last few
days and apparently interests who. for market
and other reasons. opposed to the Rock Island
management have taken the trouble go out of
their way. in the hope of making the present issue
tons 81 is not low price for first class bond,
such that which the Rock Island company
offers. All bond quotations low at present, and
existing per cent issues in no better position
than the bonds now being placed the
ket prevailing depressed prices.
Speyer & Co. believed that the best policy was
to make attractive long time investment propo-
sition in Rock Island bonds and accordingly they
advised the Rock Island interests It would be bet
ter 10 pay their legitimate debts and meet require
uants off, naiO in he of aur,s
obligation instead OF adopting the expedlent of is
suing notes II is generally believed their ideas
the securities Tho company business is expani-
ing rapid rate reflected in the earnings
3crease 9c as ten in gross reoeps Of M and sn m
crease in net earnings OF s2,647.0l9
opened at the office OF Speyer & Co at 10 a. m. on
May 81. and will be closed at p m or earlier on
in Boston bX n; w. Harris & Co; in Chicago by
deinbia bV Henry &. West also in london
The bonds a direct obligation OF the Chicago,
Rock Island & Pacific Railway Company. which
was formed in 1880 from which time II has unin-
terruptedy paid dividends on its stock. and since
are secured by a first lien on terminal properties in
ST Paul. Minneapolis and ST. Louis. new equipment
gTegstng a i48 miles including the line from St.
Louis S1 n to all he nes Of he railway
eating $500 miles, exclusive OF leased lines and
The bonds of this issue are already listed In New
York London. Amsterdam, Frankfort and Berlin.
ubtch I ' has been taken by the bankers Copies OF
= the mortgage securing the bonds and letter in
dressed to Speyer & Co., may be obtained at the
iatter's office. These bonds are legal investment
for trustees and savings banks in New York State.
and are accepted by tho Secretary of the Treasury
at IN as aa aensi deTs of 8
600 Chicago, Rock Island & Pacific RAILWAY threeo
informed that the bankers prepared 70 accept
on June these notes at par and accrued interest
and interect as stated In the notice