The Washington herald., 1909-02-14
RECEIVERS MEET INTEREST
Defaults in This Account Are Not
Considered Large.
system Pays II Per Cent of Bonded
obligations, and Holders
Are Satisfied.

Baltimore. Feb 9-In the matter OF pro-
v.ding for interest on its funded debt, The
Seaboard Air Line Railway. under the re-
oeivership, has net the expectations Of
the holders OF the company's securities
The company has q total funded debt OF
SO. SO 900. on which the interest charges
for the fiscal year ended June %, 1896,
were Ss3S.250 Besides this. there were
outstanding on the above date S3,260, )oo
receivers certificates. all bearing a s per
cent rate OF interest. due. quarterly.
amounting TO Sls50o0 a year.
These do not include the S,25o.oo0 re
ceivers' certificates authorized as issu-
able at a more recent date The only
bonds under default Of interest comprise
an aggregate OF s1s.S2O.O0O. or p per cent
OF the entire bonded debt. on which inter-
est has not been paid within the little
more than a year since the company
passed into receivers hands. The follow
ing are the securities on which such
default occurred:
PrincsvsL Int
First uo-ssa=e 4 -.-.--..-- sI2.775.500 S5Il 90
General mortssSg trast 4 6s450o SIG
THo-year sod notes ----------.---.--- feeS s-,-"
Total IN ses.sl. ............---...-q qesam S7o5
All the above issues are Seaboard Air
Line obligations proper. Besides these
there are fourteen different divisional
bonds. not including the Atlantic-Bir-
mingham thirty-year sold bonds. on
which there are now no arrears Of inter
est. These comprise y per cent OF the
entire funded debt, and amount 70 $5o.-
$4,000. with the exception OF the Atlantic
Birmingham first mortgage. which is a 1
per cent obligation, and the Carolina Cen
trail bonds OF 1919. OF the same rate. the
divisional bonds bear a rate OF interest
In the majority Of cases Of per cent.
and In several Of s per cent These Va
rious divisional bonds require an annual
interest charge Of si,7S4SG compared
with sl.sJs, 40 on the main line bonds
Il is thus apparent that the fixed
charges on the divisional debt are being
met regularly. so that no impairment
OF the integrity Of the property can be
reckoned among the difficulties OF the
situation Nor does the future indicate
any danger from this quarter. In addi-
( ton 10 these claims the annual interest
has been net promptly on the principal
OF the company's collateral trust bonds
OF S00OO.O0G and the three-year collateral
trust per cent bonds Of $4.ss4,000. max
/ ing a total>of Sl4.654.O00-
This applies 10 the outstanding prin-
/ cipal Of the debt alone. exclusive Of
bonds held in the treasury Of the Sea
board Air Line Railway or proprietary
companies. Default has applied 10 some
what more than a quarter Of the com
pany's own obligations without affecting
al all the payments on the divisional
obligations.
As previously pointed out. the Sea
board is now earning fixed charges OF
all Of its obligations, including S.5i0.o0
Of receivers certificates and other forms
Of floating debt. and in some circles the
| belief prevails that the receivers wiz see
their way clear to pay on April I al
/ least one OF the defaulted coupons On the
per cent first mortgage bonds, on which
| date three viii be due