New-York tribune., 1908-04-22
PENN. R. Il. FINANCING
FRANCES so. 900 900 Bond Issue on
Advantageous Terms.

T-,e PENNSYLVANIA Railroad Company. II was ull-
officially announced YESTERDAY. has arranged
$40 e0aoo0 bond issue On tho most adNal''a-eo'9
rerr,s procured by any American railroad IN the
last two wears. The new bonds. Which VIII IL"
g. long Term and bear interest at the rate OF
= per cent VIII net the company, it Is unaers'oo''
between 96 and 81 49,,
Euhn Loeb & Co the financial agents for the
PENNSYLVANIA, have underwritten the en're So
and have il is understood. placed S-o."-"" oi
.+a new bonds in Paris. where the last FenilSNi-
vania bond was hosted AT the ofiloe o. 'i'e
bankers il was said that the details OF 'he new
loan were not yet ready for publcauo", o"'
Was intinlated that the low rate which the COM
m, vr,s having would prove an agreeable sur
prise TO Wall Street
The new bonds. il is believed. VIII be secured
under the s1en000cto general mortgage OF le'% ana
the issue Of s4oo0o00 will finance all the require
rnents Of the company for the rest OF the present
calendar wear including the extraordinary eA-
renses Of the improvements now under Wa! III
and around New York.
The news Of the bond issue came out half an
hour before the close Of the Stock Exchange, when
the market was strong. Prices hesitated for a
few minutes until il became known under what ad-
vantageous terms the company had raised 'he
money Then the news WAS construed as a Dun
argument and the market closed active and strong
The head OF one large bond house said he eX-
pected the fact that railroads with first class
credit at last able 10 get money needed for
bettern1er,s al Z favorable of interest would
= h9efCIaI
ket and eventually The whole security market
The last long term financing done by the Penn
sylvania vas the Notation of loan of $5aool"co
in Paris in June Of 1906 This was known as the
100000 franc twelve-ffteen-year 324 per cent
French loan Of 1906. II placed by Kunh, Loeb
& Co. with group Of French bankers under the
rnanaE cement Of the BanqUe de Paris ct des Pays
Ras and The credit Lyonnais- The money cost
the company around A. per cent. which was 4
more favora ble rate than il obtained when it sold
$4,000 600 Of short in this city earlier in
The spring Of 1906
IN February Of last year tie Pennsylvania
Railroad Company sold Kuhn. Loeb & co.
s6o.0oo.ooo Of three-year per cent notes, but
no bonds were sold in 1907 because of the high
rates al which railroads were forced to borrow
MONEY
The Chesapeake & Ohio Railway Company is
also preparing 10 bring out some new bonds in
The near future 10 provide for maturing issues,
The company has falling due on July S2,o13,$5f
series 4 and h per cent mortgage bonds. 1t
rauv Viii issue n similar amount of per cent
consolidated mortgage bonds of the authorized
Sco,oon.oo" Of which $@5H5S.o6o are now out
standing I'm addition 10 this the company has
s Slcen.non = per cent notes maturing on June IS.
These uore- fell due June 3. 1907. but
tended for gcar.
Complete details inc method which would
b. employed for rodecminG The notes were not
available. but II Was generally believed that =
fresh no-o issue would he made Whether not
n" non issue would he iu excess Of the
cu5re5 to take no tie maturing notes could not
l. learned hut = report was current in banking
circles tHa; $4,000 ooo noleS would bA sold in
addition - tho sc.ooo.ooo 3 per cent bonds.