The star and Newark advertiser. [volume] (Newark, N.J.) 1908-1909, 1908-05-02
MYSTERY, IN P. S.
RAILWAY COMPANY
s50,0OO,000 ISSUE
Stockholders Will Act on Di-
rectors' Proposal on
May IL.
MAY MEAN ACQUISITION
OF SEVERAL NEW LINES
Total Issue Planned Said to Be
Twice Amount Original
ly Stated.

Speculation regarding the purpose OF
the big bond issue proposed by the
directors of the Public Service Railway
Company is general in financial cir
Giles in this city, and also in New York,
Philadelphia, Jersey City, Paterson,
Camden and other places where large
blocks of stock are held.
None of the people able to tell what
the plans contemplated are will tell
what is proposed and the consequence
is a mass of rumors, the verify of
which cannot be judged accurately.
Instead of the proposed bono issue
being $25, 000, 900, it is now learned that
the amount recommended is twice that
figure, but that it is planned to put out
on the market at the present time only
the $25, 900, 900, using it to exchange
present securities for those of the COM
pany.
The issue was decided on at the an
nual meeting of the directors of the
company last Tuesday, but it will be
again considered at mother meeting
next Tuesday, and will be followed by
the submission of the proposition to the
stockholders at a meeting to be called
for a week from next Monday.
Reported Purpose.
1t is sail that the principal purpose
back of the issue is to have the Public
Service Railway Company acquire di-
rectly the securities of the underlying
companies. 1t is said this is a step
in the matter of simplifying the con-
duct of the company on the same lines
as the formation of the railway com
pany itself to take over the operation
of all the street railway companies
controlled by the Public Service Cor
poration.
1t is the purpose of the corporation
to have part of the new bond issue re-
deemable at the end of each fiscal year
after 1918, at 105 Inc interest. The
issue is to be of first mortgage 5 per
cent. bonds.
Between S12,0 900, 900 and $13, 900. 900 of
the bonds will be used to retire gold
certificates about to mature, which
were given for bonds of other lines
bought up by the Public Service Cor
poration several years ago.
Officials of the company refuse to
discuss the contemplated use of the
bdi1llNNs btSolla thS oAotpiiiNAh net
after the gold certificates have been
retired, the remainder, if any, will be
used to extend the service and secure
improved equipment. 1t Is understood
that this contemplates the purchase of
many new pay-as-you-enter cars. which
cost $4,000 each
Acquisition Plan Seen.
Some financially interested people
predict the acquisition of every indie
pendent trolley line in the State,
among them being a line operating be-
tween Long Branch and Sea Girt, one
between New Brunswick and Trenton
and a third one between Trenton and
Camden.
"The matter Is now in it's 'romancing'
stage" said ono official today. 1.-THE
papers first said the isue would be
SIS, 900, 900; now it is $780, 0 900. Why
not make 1t $3.50, 900. 600 and have the
extra 800. 900, 600 water?"
do you deny that it will be $780,
900, 0OO?"
81 neither deny nor affirm the
rumor, was the answer Our plans
are not yet ready to be made public"
President Thomas n. McCarter is out
of town, and no one could be found
who would divulge the use to which
the remaining sSS,OOO, 900 would be put,