The Montgomery advertiser., 1909-09-05
SOUTH'S. ROADS
SOON TO LEAD
Rad Magnates' Eyes on
Dixie.
POSSIBILITIES ARE MENTIONED
Next Twelve Months May See
Changes.
Atlantic Coast Line Arfanges to Nest
Big Note, But May Issue bonds
Other lines Plans.
DISABILITIES ARE MENTIONED

Washington. Sept. 5.-A special "a
The Herald from Baltimore says:
Inc arrangements OF Southern rail.
roads are watching with keen inters
est the investment market, with a view
70 raising substantial amount of new
capital when conditions warrant the
noatation of bonds and other terms Of
securities. u
besides providing for short-terrn
notes, which mature within the next
Two years, great sums of money must
be expended for bAtterment in order Ia
reap the full benefits to follow the ex-
pected expansion in traffic Men who
have made q study OF railroad posi-.
niIities In the South say that this sec
uon Will lead all others In development
IN the next ten years. and that con-
struction work upon an elaborate scale
probably will be fairly under way
within twelve months.
MOI the least important of this work
Will be double tracking. The inability
OF the transportation companies Of the
south to handle the traffic prior to the
panic two years ago should serve as a
warning OF what may be expected In
the not distant future. IL general busf-
ness continues to go forward as It has
In the last six months. and railroad fa-
ciltties do not increase In proportion. +
Large Loans VIII Be Due.
On March !, 1910, an issue OF S5,000,-
900 of three year coupon notes on the
Atlantic Coast Line will be due, but
the company has already provided for
them. 1t Is generally believed, how
ever, that the Atlantic Coast Line will
need funds for improvements. extern
stons, ETC.. and that 1t will raise them
through the sale OF stock or some form
OF bond.
Recent reports that the Louisville
and Nashville directors had under con-
sheraton the issuance of some s40.-
100000 new stock. although they seem
to have been at least premature. have
served to direct more than the usual
attention to the requirements of roads
operating In that general territory.
The Southern's requirements are per.
haps more immediate THAI any OF the
other roads which may properly be
classified with It from the standpoint
Of territory served. 1t has falling due
In February. 1910. si6.0O0.e00 short
term notes. for which 1t must provide.
and 1t 10 quite generally understood
that at the same time 1T will seek to
provide itself with additional funds for
he--carrying- Gifts Improvement
and development plans. Its financing
will be done by means OF the develop
ment and general mortgage per cent.
bonds. of which substantial amount
has already been marketed since the
beginning of the current year, and
which have renently shown. along with
the increasing earnings OF the company
a noticeable strengthening OF market
position
Talked to Legislators.
Earlier In the year. when e. H. Har-
riman became Identified with the man.
agement OF the Central of Georgia, he
talked pretty plainly to the people OF
the South about the attitude of their
legislatures toward the railroads and
made some rather definite promises az
to what he. would do for the Central
provided !, the legislative embargo
should be- removed He mentioned the
sum of tfe,Q1D, 100 which could be spent
ifaris diatel9 Tor the upeift Of the prop
erty.lbut ttadees not appear from what
source the money win be likely to
come. @
Requirements Of the Seaboard ALE
Line covering a period OF years ara
provided for In the plan for the adjust-
ment of that company's AFFAIRS, though
1t Is not unlikely that the management
win avail stseif within the next three
mortgage bonds at par and interest
and substitute the unified and refund
ing mortgage covering the entire sys-
tenn, subject to the underlying liens.
This mortgage is for $125,000,0O0, and
1t is estimated that the bonds to be is
sued under II will provide for the
needs Of the company for twenty years
or more.
The Western Maryland Railroad will
raise $s.27t.160 through the sale OF
common stock of the reorganized COM
pany, and the committee estimates this
sum will be sufficient to place the toJn-
pany on a strong basis, in that it will
enable the corporation to pay OF its
doating debt.
C. and o. Making Improvements.
Within the year Chesapeake and
Ohio. one of the three or four impor-
tant coaI-carrying roads OF the South
has authorized a new mortgage under
which IL may sell bonds for future re-
qulrements. The authorized amount
($3O, 00O, 00O) will undoubtedly be ade-
quate tor several wears to come. Up TO-
the present time. s11.000,000 of the new
bonds have been sold, but as the pro-
ceeds were largely for the ratiremehI
Of the $7,5O0,0O0 short term notes, leav-
ing a comparatively small margin Tor
other uses, 1t would not be surprising
If this road would be included among
the relatively early borrowers.
Norfolk and Western, another I'M.
portant road of the same character
could undoubtedly use money 10 al
vantage. 1t has heen one of the roaos
which has met with success in the use
Of convertible bonds. and. in fact, mas
considerable margin over the outstand-
ing amount of the issue. authorized 70
the total amount of $34,000,00O in l9oI.
Moreover. there are outstanding only
S2s. OOO. 900 of the authorized issue OF
S36. 900 600 vie4.~lal and hrst heh
bonds, the balance of which are aval-
able for acquisition or constructor o.
I'D addItional equipment. Some SlO'-
600 900 o fthese bonds have been mar
EatsS since the beginning OF the year
rnPDO9e9.