The Washington herald., 1909-05-09
Speyer & CO. Offer St Louis and san
Erancssco 3 De- Cent bonds.

Speyer & CO. are Offering. subject 70
previous sale and advance tn price so,
Ga. .fG0 St Louis and san Francisco Rail-
road Company general lien I5-20 year
per cent gold bonds al q and accrued IL
te7est- At this price the BONDS yield
about 5's per cent Der annum.
These bonds are q direct obligation OF
the company, covering ali Of its property
as described in the mortgage and any
property. hereafter acquired with the pro-
ceeds OF the bonds. On June I. 1919. upon
redemption OF the 81 Louis Memphis and
Southeastern Railroad Company ~ per
cent bonds the , per cent bonds VIII be-
come 2 first mortgage on TO miles OF
road OF the latter company. subject only
70 Ss29 i25 existing bonds. for the redemp-
ton OF which general lien bonds are re-
served.
II is learned from q trustworthy source
that the main line OF the s.. Louis, Mem
phis and Southeastern Railroad IS show
ing larger gross earnings per mile Of road
than other roads in similar territory
This company is one Of the most valuab1e
parts Of the Frisco lines
On OF before October I. 1913 the Der
cent gold bonds Win practically become
& flrsT lien OF 1,526 miles o. road. They
are also a lien subject 20 the refunding
or underlying mortgages on 2504 miles
AZ a further security the bonds are a
lien on the stock and lesse-hOld interest
Of the company in the Kansas CITY. Fort
Scott and Memphis Railway and Kan
sas CITY. Memphis and Birmingham Rail-
road Company, whose mileage aggregates
! Ig3 miles. 50 that the total mileage In-
der which these bonds win eventually
become secured VIII be 5.S3G miles.
IN addition TO this large mileage that
viii eventually come under The nloTtEa ge-
the bonds are further secured BY equip
Taent costing originally Ns,00.e9t and
comprising 81 locomotives. 81 passenger,
and I45l freight and other cars. which
equipment the company agrees to keep
in good repair and replace when de-
stroyed
The average surplus OF The St Louis
and san Francisco Railroad Company.
teXclUS1ve or the chicago and Eastern
Illinois Railroad for each of the four
fiscal years. 1905 1907. 1895. 19C5. after pro-
vidinS for all fixed charges, taxes, rent
ais. &c. amounted 10 Sl-9SI-7-S. and the
gross and net earnings for ten months
ended April 80, 1893 are considerably In
excess or those last year.
The bonds viii be listed on the New
York Stock Exchange and in Europe
Speyer & Co. have Issued a circular
covering all the details and a map show
ing the lines Of road subject 10 the above
bonds.
It is understood that a large amount
Of these bonds has already been privately
disposed Of and IN view OF the character
Of the security, the favorable price and
the present popularity with the public of
a bond yielding q large return in pref
eTence 10 the old / per cent bonds, II is
expected that this issue viii be readily
absorbed and, Ike the previous success
ful issue of these bonds. soon command
q premium above the offered price
3. Z. TOakum, chairman OF the board
Of the St Louis and san Francisco. in a
letter TO Messrs SpeyeT & Co. under
date OF May 5. 1899. writes in part, as
follows:
AT the present time business * show
ing a steady Improvement. the estimated
gross earnings for the month Of April be-
ing STATS in excess Of the same month
last year.
There can be no question as 10 the
future OF the territory served by the com
pany's lines II is IN this section OF the
country that the growth OF immigration
Of an agricultural development is most
marked. The growth Of manufacturing
interests Is also notable. and the number
of~new industries located each year is
proof Of this The policy of the company
mas been. and viii be. to foster every de-
veloPment Of this kind. and every sue
cessful enterprise that is established must
add TO the revenues Of the railroad CON-
pa1y."
Il should also be borne IN rnind that
portion OF the new mileage IS only now
coming into full operation.