The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1909-08-29
SOUTHERN ROADS
WILL SPEND MONEY
Must Raise Vast Sums in the
Next Few Years.
TRAFFIC DEMANDS OUTLAY
Trunk Line Managers Watch for
PropitiOus Moment in Whish 20
Float Bonds for Improvement.
Many Millions of Dollars Needed
to Provide transportation.

Baltimore. Aug. B.-The arrangements
OF Southern railroads are watching with
keen interest the investment market.
with a view to raising q substantial
amount OF new capital when conditions
warrant the hOtatlon OF bonds and other
forms OF securities.
Besides providing for short-tern notes,
which mature within the next two years,
great sums OF money must be expended
for betterment IN order to reap the full
benefits 10 follow the expected expansion
in traffic Men who have made a study
Of railroad possibilities in the South say
that section will lead all others in de-
vel0pment IN the next ten years. and
that construction work upon an elaborate
scale probably will be fairly under way
within twelve months.
Not the least important Of this work
VIII be double tracking The inability
Of the transportation companies OF the
South 10 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. II general business
continues 10 go forward as It has in the
last six months. and railroad facilities
10 not increase IN proportion.
Large Loan VIII Be Due.
On March !, 1910 an issue Of $4,000
Of three-year coupon notes OF the At
lantic Coast Line viii be due. but the
company has already provided for them.
II IS generally believed, however, that
the Atlantic Coast Line viii need funds
for Improvements. extensions. &c. and
that II VIII raise them through me sale
OF stock or some form OF bond.
Recent reports that the Louisville and
Nashville directors had under considera-
ton the issuance Of some 100000 new
stock. although they seem 10 have been
at least premature. have served 10 direct
more than the usual attention 70 the re-
quirements Of roads operating in that
general territory.
The S0uthern's requirements are per.
haps more immediate than any Of the
other roads which may properly be clas-
siied with It from the standpoint OF ter
ritory served. Il has falling due In Feb
ruary, 1910 $4,000. OO0 short-term notes. for
which it must provide, and II is quite
generally understood that al the same
time It will seek 70 provide itself with
additional funds for the carving out OF
its improvement and development plans.
Its financing viii be done by means OF
the development and general mortgage (
per cent bonds, OF which a suhsta ntiaI
amount has already been marketed since
the beginning OF the current year, and
which have recently shown. along with
I the increasing earnings Of the company.
q noticeable Strengthening OF market po-
sition.
Talked Plain 20 Legislators.
Earlier IN the year when z. H. Harri-
man became identified with the manage
ment OF the Central OF Georgia. he talked
pretty plainly 70 the people OF the South
about the attitude OF their legislatures
/ toward the railroads and made some
rather definite promises as to what he
would do for the Central provided the
legislative embargo should be removed.
He mentioned the sum Of S10Oo0.OOO which
| could be spent Immediately for the uplift
/ OF the property, but It does not appear
from what source the money viii bs
! likely TO come.
/ Requirements OF the Seaboard Air Linz
| covering q period OF years are provided
for in the plan for the adjustment OF
that company's affairs. though it is not
unlikely that the management viii avail
/ itself within the next three years OF the
option to call in the first mortgage bonds
at par and interest and substitute the
unified and refunding mortgage covering
the entire system. subject 10 the UNDER
! lying liens This mortgage is for $685.
/ 0O0, goo, and II is estimated that the bonds
/ TO be issued under Il viii provide for the
needs Of the company for twenty years or
more.
I The Western Maryland Railroad VIII
raise SS,Z74l6O through the sale OF COM
mon stock Of the reorganized company,
/ and the committee estimates this sum
viii be sufficient to place the company
on a strong basis. in that 1t viii enable
/ the corporation to pay of its floating
debt
c. & o. Making improvements.
Within tie year Chesapeake and Ohio.
one OF the three or four important coal
/ carrying roads OF the South, has author
I lied a new mortgage under which It may
sell bonds for future requirements. The
authorized amount (s90.Oo0.00W Will IN
( dOubtedly be adequate for several years
20 come. Up 20 the present time, ST.
( 100000 OF the new bonds have been sold.
/ but. as the proceeds were largely for the
/ retirement of the $4,000 short-term
notes. leaving a comparatively small
margin for other uses, Il would not be
surprising II this road would be in
/ cluded among the relatively early bor-
/ TOWeTs.
] Norfolk and Western. another impOr-
J tauI road OF the same character, could
undoubtedly use money to advantage 1t
I has been one Of the roads which has
met with success in the use of convert
/ IDLE bonds. and, in fact. has considerable
/ margin over the outstanding amount Of
/ the issue. authorized TO the total amount
/ OF S5l.O0eOe0 in 1901. Moreover. there are
outstanding only S23.OO0,000 Of the author
I lied tissue OF S25.O0o990 divisional and first
1 lien bonds. the balance Of which are
available for acquisition or construction
! Of branch lines and for improvements
and additional equipment. Some 100000
Of tAese bonds have been marketed since
the beginning Of the year for refunding
purposes.
/ The foregoing does not complete tho
list. OF course. but the companies named
| and their needs will serve TO give an ieda
| OF what may be expected in the way OF