The Newark star and Newark advertiser. [volume] (Newark, N.J.) 1909-1909, 1909-08-04
Big FinanCier and Drexel
6 Co. to UnderWrite
$6,OOO,OOO Bend Issue.
ADDITIONAL ISSUES TO
BE MADE ANNUALLY
Bonds to Be Offered at Less
Than Par-TO Bear 5 Per
Cent. Interest.
CITY BANKS MAY SHARE
IN THE UNDERWRITING
Deal Means Closer Union of Big
Financial interests of World
with Newark Securities.

A financial transaction of tremendous
interest in local financial circles. to
which it is by no means limited. came
to light today when it was learned
from an authentic source that the Pub
lie Service Corporation had recently
authorized the execution Of s5o. 600. 900
general mortgage on all it's properties
and that under this mortgage bonds TO
the extent of $4,000. 900 are to be issuea
in the near future.
An intensely significant feature q
this bond issue lies in the fact that ths.
bonds are underwritten by J. p. Nor.
gan & Co., of New York, and Drexe1
& Co, Of Philadelphia 1t is understood
that ]. P. Morgan & Co, have been ex-
amining the properties of the Public
Service Corporation for some time. bur
that the big Wall Street house had
hitherto refrained from participating in
any underwriting OF this company.
Ihat they have finally consented to be-
come managers Of the syndicate which
is to underwrite these new bonds of the
Public Service is regarded as evidence
of the excellent financial condition of
the latter corporation.
1t is understood that the big mort
gage on the Public Service properties
is to be dated and to go into effect
November 1 next The proceeds from
the sS,o0o,000 issue of bonds are to be
used for cancelling collateral trust
notes, amounting TO s7,250.000. which
mature November / of the present
year. and as many of the convertible
gold notes as are outstanding Most
of the latter notes were converted into
stock last May, but there are outstand-
ing yet Of such notes approximately
$500. 900
From a thoroughly reliable source
comes the additional information con-
cerning the Public Service Company.s
plans, to the effect that from year to
year new bonds will be issued under
the mortgage to retire maturing obli-
cations and for carrying out big plans
for the improvement OF the eompany's
properties.
Many local banking concerns are TO
be allowed to participate IN the under
writing syndicate. It is understood that
the bonds are to bear interest at per
cent. and that they are to be offered to
the public at a little less than par.
This mortgage is to be a lien upon
all the properties of the Public Service
Corporation, subject TO the incum-
brances now thereon.
The negotiation with ]. P. Morgan
& Co. concerning the underwriting OF
the bonds has been going on for some
time and has been conducted by Presf-
dent Thomas n. McCarter. Of the Pub
lie Service Corporation. in person.
Concerning this participation of the
Morgan company in the underwriting
of these bonds prominent local finan-
cier said today:
THE Morgan underwriting of the
Public Service Corporation securities
is great boom for New Jersey It
shows an appreciation of the value OF
these securities that have hitherto
been considered only within the limits
of New Jersey and means closer
union of the great financial interests
of the world with our local institutions
and properties.
"It will direct the attention of the
public to securities that have been sell
| ing far below their value and will in
vite the investment Of outside capital
in these same securities"
An attempt was made to see Presi-
dent McCarter, who swung the big
deal, today, but he is taking a vacation.