New-York tribune., 1908-03-06
WANTS NEW BOND ISSUE
MOVE By INTERBOROCGH.
Asks Permission of p. S. Board TO
Esecute Big MortgdSc.

EdPcute Big IfWiSUSt.
Formal application made to the Public
Service Commission yesterday by tho Inter
borough Rapid Transit Company FOR pernis-
sion 10 execute p mortgage of all its real estate
and all Of its interests lessee OF the subway
and other property to secure an issue of not to
exceed SI5o0aoeo face value of forty-f1ve year
gold mortgage bonds.
1t asks for the approval Of the commission
Tor the immediate issue of the bonds, as fol-
lows:
"a Bonds 10 an amount not exceeding YIN
.se4sasa for the purpose of refunding or secur-
ing the extension of its said series of SlotthHpo
face value gold maturing May l. l9tS
and t21 bonds TO the amount of $l2,roooo; face
xalre for the purpose of funding or dischalS-
ing its present outstanding Indebtedness tother
than its gold notesl. and or providing funds Tor
fits immediate needs.
1t has been known that the Interborough in
tended 10 put out q bond issue, but its request
for permission to mortgage its leases on 'he
subway was a surprise. The Public Service
Commission. in its capacity as successor TO the
old Rapid Transit Commission. will have TO act
this request
II is said that nc negotiations for the sale Of
5he proposed bonds have been made, and il may
he necessary 10 issue notes to raise the money
needed at the present time. The company
therefore asks permission to issue promissory
l. 1905. 10 be payable in not TO exceed three
wears with interest not 10 exceed per cent. 10
which il will pledge not TO exceed $50
oaa90 Of the proposed bond issue
The following details OF the proposed bond
issue are given in the petition:
To he dated as Of November ]. 1907. TO he
pava he November l. 1852 with interest at a
rate TO ne fixed by the board of directors Of the
company frcm time 10 time. payable Selnl-dn-
nUally on the first days OF May and November
each year. Such bonds 20 be entitled TO the
benefit Of and he subject 70 purchase at 40
Ter cent and accrued interest through the on
erations Of a sinking fund Of S3ooeco per
srnun1. beginning November !. 1910. The bonds
also be subject 10 payment and canCella-
ton al the option Of your petitioner on any IN, IN,
Teresf day in amounts of not less than S1.1lo00o
<aoe value at 10 per cent and accrued interest
The outstanding Indebtedness Of the Inter
borough Rapid Transit Company is given as
follows:
Fas & niue 5e R5 cent nth ,sFee-yesr 3s so.d notes
with Windsor Trust COMPANY. -, ~
Fac velne .hreeyssT ear, 5 per cent SOD notes
agreement with Morton Trust Company, -.
T.me and demand loans 512e I72 80
it is stated in the trust agreements under
which former issues OF notes were made that,
In case the company should mortgage any Of
its property prior 10 the payment of the notes,
Of the holders of the notes It is directly stated
by the petition that the mortgage will secure
ravrlent Of these notes until they shall be ex-
changed for bonds issued under the mortgage
or retired or otherwise Cancelled
II is uroposed TO use the $4,000 nG of bonds.
authorization for the immediate issue Of which,
in addition to the S1S000oo0. is asked. TO pur-
chase or retire the S10G0oG0 three year per
cent gold notes, maturing March ]. 1910; also
It is also proposed TO issue the remainder OF
tho bonds al such times as they may be needed
Tor construction. acquisition betternents or
other purposes.
il il said that the unsecured obligations of the
company. aggregating ,S10,352, 1@6 o4, were in
e.rred principally for the following purposes;
Equipment Of the subway under contracts
ard = S7.727 SIC o.; excess cost of that part
Of tho BROOKLYN extension in operation Decem-
ber 81 1907. s, 624. .91oo7-
The following table is given of the cash cost
of properties included in the proposed mort
gage or the actual cash advances made TO
companies specified, as Of December II, 1900:
,aIue Of Ieases subNsv taken At actual
amount of ossn enIen9Sd ed ,eI5al3"n toT egG,Iei in
rxcess a amount received from City Of COS "a
,sf ~ ssats no; included in equip,nent 1s6 sl4 50
o@E sJ0g g 4r 9f rta e ' ot pai9 in ssh 100000 90
named companies Ct cash cost
Ir+erborOush RAPID TRANSIT
sarnTsHy-
subway Realty tonpanF e i"o--'' -
Neu- Norl & CcCrtE
CornTanT-------- -+rD-i.' -
N4y d Long Island
Company '47,~'' -
Long - i55@'s' f-'7-'''' -. 612sa0 So
fund fvyhi tho
agreement which the gold notes No
Nav 1905 were issued. Is aiIfp- oee
- security Or the Eoid ll9tee'-
.arro1nts from companies
whose stocks a included N
mortgage
- rs5,l.as l,.s SS,rSTs1Z- = - s-7c OHO
loD & Long Island -oo,ooo
subway hea-'S co'lpais " - 1724 To- Il
s54.O95. as Z:
RI. .y,,,-a statement does not include the cap
Italized value of the subway leases or the Man
haitian Railway lease. or the amount invested
49, IL & .n1,c. IsEanf Rairoad lSteln-