The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1909-07-02
]. P. MORGAN
WILL TAKE BONDS
WILL HANDLE ISSUE OF FLOR
IDA EAST COAST RAILWAY-To
RETIRE OLD NoTEs-NoNE OF
THE SECOND MORTGAGE BONDS
HAVE BEEN ISSUED.

The New York Tribune says J. P.
Morgan & Co. will handle the new
bond issue OF the Florida East Coast
Railway, which the road is planning
10 put out soon. The authorized issue
viii be S12,000,0 900, of which 0,O00,-
900 has been taken by the Morgan
firm. The new bonds win be an abso-
lutte first mortgage on all the prop
srty OF the railroad, and viii bear in
terest at the rate Of 4 IL per ce1zS.
In connection with the announcement
that J P. Morgan & &c. would be the
fiscal agents of the Florida East Coast
Railway, the report that George W.
Perkins would shortly enter the direc-
torate of the road as representative
e the firm was officially confirmed.
His election is expected to take place
N the next meeting Of the directors.
The New Issue.
The fact that the new issue IS to
lDe an absolute first mortgage on the
road means that the present fist mort
gage viii be retired This secures an
issue OF s7,25S,eOO first mortgage
bonds, all the roads S5,0SO,G00 three
year ger cent notes maturing -
August, 1910. There is also a second
mortgage, to secure an issue Of S.
741, 900 thfKsy-yaar 5 per cent bonds.
pone Of which has ever been sold.
Part of the new bonds, it is under
stood, viii be used 10 retire the notes,
and the first mortgage bonds pledged
as security for their payment VIII
then be cancelled. AS none of the
second mort gage bonds have been is
sued, they could be easily cancelled.
The proceeds remaining from the sale
OF the SIC, 0Ro.H00 bonds taken By J.
p. Morgan & Co., after retiring the
notes, Will be used, it is said, to COM
plete the road from Knights Key, its
present ending, to Key West.
Wall Street Surprised.
The announcement that the new
ifnanofng Of the Florida East Coast
RasfJTay, which Is owned by H. NJ.
FIzglsr, would be done by the Morgan
firm cecRsioned some surprise in the
financial district, where It had been
GENERALLY supposed that the new bond
Rotation would be handled by bankers
more closely affiliated with the Stand
ard OIL Company, Of which Mr.. Flag
Ter hrs since its early days been dl-
rector.
The fact that the Morgan firm had
become interested in the financing OF
the Florida East Coast Railway natur-
ally gave rise in Wall street to sur
misses that in time the road might be
Joined with the Southern Railway, in
which the Morgan influence is domi-
nant, forming a through line from
Washington to Key West, or practi-
cally to Cuba, as Key West is only
ninety miles from Havana. Another
system having direct connection by
steamer with Havana, in which the
Morgans are interested, is the Allan
tic Coast Line. This road, like the
Southern Railway, reaches Washing
ton through it's one-sixth interest IN
the Richmond Washington Company,
controlling a road between Richmond
and WASHINGTON. 1t extends into Flor
Ida. The lines of the Plant System
which was merged with the Atlantic
Coast Line In 1902, reach Tampa,
whence a direct service by steamship
Is maintained to Havana.
II was the Morgans who sold the
louisville and Nashville to the At
lantic Coast Line a few years ago
litter John w. Gates had got control
Df It, and their relations with the
Coast Line have since then been close,
Although no members OF the firm are
directors of the railroad company.