New-York tribune., 1909-06-03
ATCHISON BOND ISSUE
MORGAN UNDERWRITING.
BelieUed, HoueUer, That Entire
s35, 900 900 VIII Go to Stockholders.

The directors of the Atchison, Topeka & Santa
Fe Railway Company announced yesterday an
issue of sS5ooO00 of the s9S 10000 per cent con-
vertible bonds authorized in 1907 of which $26,-
056000 issued In that year. The preferred
and common stock holders of record on June 16
are offered the right 70 subscribe at 1O4 and in
terest for amount ot the bonds equal TO
p per cent Of their holdings. on the basis of the
amount of stock at present outstan nding this would
call for approximately S270OO0OO Of the bonds pro-
vided all the stockholders took advantage of the
offer. 1t is expected. however, that between now
and June Is. when the transfer books close, large
amounts of the per cent bonds outstanding will
be converted into common stock. and the amount
of the issue fixed accordingly.
The privilege of subscribing for the issue
begins July 20 and ends July %. The bonds will
mature July l, 1875, and will be convertible prior
to June l. 1918. at the option of the holders into
common stock of equal par value. Payment for
the bonds is to be made in four nstalments. the
first payable the time OF subscription and the
last between February and Il, 1911
In a statement given out after the meeting It was
said that the company had on hand ample cash for
all requirements, but intended in the near
future 10 make important extensions and better
ments which expected greatly to increase its
earning capacity. and that it had been deemed pru-
dent TO make provision for capital at this time
in contemplation of such proposed work.
An officer of the road said that part Of the pro-
ceeds Of the bond sale would probably be used TO
build the cutoff from Texico to Brentwood, in
Texas the construction of which has been under
contemplation for some time. This viii shorten the
haul between Galveston and San Francisco by
about four hundred miles. He added. however. that
the company did not contemplate taking up any
extensive construction during the present cal
endar year that the principal reason for Is
suing bonds at this time was that the
directors decided that Il would be wise TO take ad
vanage OF the present favorable condition or the
money market provide the company with fuhdS.
The bonds have been underwritten by J. + Nor
gan Co. but il Is expected that the entire issue
will ne taken by the stockholders or TO whom they
sell their rights. There active market Tor
these rights the curb yesterday, following the
announcement at from L 9-1s per cent
It was said that the issue had been approved by
the Kansas Board of Railroad Commissioners. It
will remembered IN this connection that last
March, after announcement had been made by
the Atchison directors of a proposed issue Of ap-
prosmately s2s.e0o 600 OF per cent bonds and the
matter had gone far that the issue had been sold
to bankers subject TO the Offering Of the bonds 10
stockholders. II withdrawn, owing TO the belief
that II might be construed TO under the super
vision OF the Kansas stock and bond law. which
had Just been enacted, although II not yet in
effect Rather than take any chances of having
the issue declared Illegal, the directors decided
to postpone the entire matter until application
could be made in proper form To the Board Of Rail-
road Commissioners.