The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-07-10
Syndicate Headed by Banque
PriVee Buys Frisco Bonds.
French Capital Will Be Invested
in Improvements on Road.
PLACES TEN MILLION.
Third Large Block of Stock
Sod to Foreigners.
Other Items Of Interest in
Railway Circles.

New York, July 10.-S9eyer & Co.
announce that a group of French
banks headed by the Banque Privee
of Paris have concluded negotiations
covering about $1O,OOO,O0O St. Louis
and San Francisco Railroad company
general lien f1fteen-twenty-ye 5 per
cent gold bonds, due in 1927. These
bonds will be issued in Paris some
time this month, and are a special
French series, being in the denomin-
alton of 500 per bond. They are
part of a total authorized issue of
$1O9, 100000, and $35,O0O,00O are al
ready listed on the New York, London
and Amsterdam Stock exchanges.
Since June 1 the st. Louis and San
Francisco Railroad cOmpany's gener-
al lien 5s have become a first mort
gage on 665 miles of the st. Louis,
Memphis and Western railroad, sub
ject to only about $4S9.0 600 existing
bonds. for which general lien bonds
are reserved. On or before Oct. l,
1913, they will become first lien on
a total of 1926 miles. They are also
a general lien on 1904 miles addition
al and cover the leasehold interest of
the company in 1,199 miles.
1t is understood representatives OF
the French banking syndicate headed
by the Banque Privee of Paris, which
has purchased the $4,000, 900 st.
Louis and san Francisco 3 per cent
bonds, made a thorough examination
of the company's earnings and pros
poets before concluding the negotla-
tions. Having been satisfied that the
condition of the company was such
as to warrant them in recommending
the bonds to French investors, the
syndicate mem bers did not hesitate
to close the deal and it is believed
that the issue will find a ready mar
ket with the French investing pub
lie. Bankers familiar with Paris in
vestment conditions saw there are
practically no French bonds of equal
merit available there which will yield
as large return as the Frisco 5S.
The transaction affords additional
evidence of increasing interest which
French bankers and investors are
taking in American securities, and
the sale of the Frisco issue, it is
thought, will be followed by the alb
sorption of additional American bonds
by the French investing class. In the
financial district the placing OF this
issue in Paris was accorded a good
deal of significance in its bearing uDc
the credit of the St. Louis and San
Francisco Railroad company, and
bankers generally expressed them
selves as highly gratified at the out
come of the negotiations.
So far as can be recalled, this IS
the third large block of American
railroad bonds placed in Paris and is
sued in special French series IN re-
cent years The other two were fot-
ations made by the Pennsylvania
Railroad company and the New York,
New Haven and Hartford Railroad
company whose credit is of the hi
est order. Steps may be taken, it is
understood, for listing the Frisco
bonds on the Paris bOurse, but the 10
cal bankers who foated them are not
particularly concerned with that end
Of the deal The main principle is
that the sale of the issue to the
French syndicate is an absolute one, |
and the h nds are ava; able for listing
on the bourse. If the French bankers |
care to press the matter it is intimat-
ed. however, that there will be no
special case in this respect.