New-York tribune., 1909-06-22
MORGAN TO TAKE BONDS
UIH Handle SI2,o00,O10 Issue Of
F7O7da Coast Rmj7raY.

J ? Morgan { CO. will handle -He new bond
issue of the Florida East Coast RalstE. which
. as announced III The Tribune last Sunday. the
road Is planning TO plt out soon. ..ne authorized
issue Will he Sl1oa00r' Of which 5lar'1'a has been
3 taken bv the Morgan firm The rca bonds will be
/ an absolute first mortgage OF all the property ~
the railroad and viii hear interest ar the rate oi
4l2 per cent I'm connection with the Announcements
that }. = Morgan & Co. would he the -5ca- agents
of the Florida Last Coast R4uRay. the report
that George " Perkins Rould shortly enter tle
directorate ot the road as the representative -
the firm was oficizIiy confirmed His election IS
expected 10 take place At the next meeting # the
directors
Tho fact that the new issue is - ne an a-so-
lure first mortgage on the road means that the
present first mortgage will be- retired. This secrues
issue Of 27-5&c0 lr-r mortgage bonds. al of
which are pledged as security for the road 5@"'.-
50 three year per cent notes maturing in August
19la There is also second mortgage. ~ secure an
issue Of S5-n "r1 thirtz-gsar ef cent bonds none
Of which has ever been sold Part 80 the new
bonds il is understood. VIII he used - retire the
notes. and the first m7rc- Ee bonds pledged a-
security for their payment viii then Ia cancelled
A. none OF The second mortgage bonds has been
issued. they could he easily cancelled The p.o-
ceeds remaining from the ~4le of the No""t'"
bonds taken by j. =. Morgan < 60, after retiring
the notes Viii he used. # Is SAID. FL" .on7ete the
road from knights key. its rre-en. end.uG. TO Key
West.
Florida East Coast Rairwa-. which is owned bv 'i
N FIaEIer woald be- done 10y rle Morgan firm "n-
oasioned some surprise IN the financial 5's-ut.'.
where it had been generally supposed that rhe new
bond forzrion would he handled ay bankers moro
closely affiliated with the Standard OIL Company. of
which Nj FIaelo- has since IT'S early days rce0
director.
The fact that the Morgan firm had become inter
Nsred In the fnaucrns ~ ths Florida East Coast
Railway naturally save rise 80 Wall Street ~ sur
misses that In time the road might be Joined with
the Southern RAILWAY. in which the Morgan ir'u-
en.a IS dominant forming Through line from
Washington 70 kev West. practically TO cuba
as Key WeSr is only ninety miles from Havana An
other system having direct connection hs steamer
with Havana IN which the Norzars are Interested /
Is III" Atlantic Coast Line This road ike the
Southern Railway. reaches Washington through t-z
"ne-stNth interest in Tie Rirru.r5- Wa -a..srar
company. controlling road between Richmond and
Washington. + extends into Florida The lines a,
i1s Plant system. which was merged with the Ar
antio Coast Line n -%4 reach Tampa. whence a /
direct service hv Steamship is maintained -.
Havana
r was tie N0--a7s who sold --e r...te,tro K .
Nashville ~ tHN Atlantic Coast Line % few. wears
ago after John W Gates had -7- ..r,-.. ~ IT, md
i.5'7 relations with -ae coast line .... z--e t.a ar
E@'7 close although ro r~e~ns-- ~ -.. finn -ro 7
orc 'oES ot Tie railroad cnr-..--.