The Ocala banner. (Ocala, Marion County, Fla.) 1883-194?, 1909-07-02
noRcAN BECOMES INTERESTED
IN FLORIDA


The New York Tribune says ]. P.
Morgan a Co. will handle the new
bond issue OF the Florida East Coast
Railway. which the road is planning
90 put out soon. The authorized issue
yin be sl2.OOO.OOO. of which 10000
900 has been taken by the Morgan
arm. The new bonds will be an alb
solute first mortgage on all of the
property OF the railroad, and will bear
interest AZ the rate OF 4 1-2 per cent.
IN connection with the announcement
that ]. p. Morgan & Co. would be the
nscal agents Of the Florida East
Coast Railroad, the report that Geo.
W. Perkins would shortly enter the
directorate OF the road as the repre-
sentative Of the firm was ofiicially con-
Armed. His election is expected to
take place at the next meeting of the
directors.
The fact that the new issue is to
be an absolute first mortgage on the
road means that the present first
mortgage viii be retired. This Sc
cures an issue Of s7,25s.OOO first mort
gage bonds, all Of which are pledged
as security for the roads $5,0S0,000 g.
year per cent notes maturing in Au-
gust. 1910. There is also a second
mortgage. 90 secure an issue of ST.
741,000 3O-year 8 per cent. bonds, none
OF which has ever been sold. Part Of
the new bonds, il is understood, will
be used to retire the notes, and the
FIRST mortgage bonds pledged as Sc
curity for their payment viii then be
cancelled AS none of the second mort
gage bonds have been issued, they
could be easily cancelled. The pro-
ceeds remaining from the sale of the
100000 bonds taken by ]. p. Nor
gan & Co, after retiring the notes,
viii be used. IL is said, to complete
the road from knights Key, its pres
ent ending. to Key West.
Wall Street Surprised
The announcement that the new f.
nancing OF the Florida East Coast
Railway. which is owned by H. NJ.
Flagler, would be done by the Morgan
firm occasioned some surprise in the
financial district, where il had been
generally supposed that the new bond
hoatafion would be handled by bank |
ers more closely affiliated with the
Standard OF Company, of which Mr..
Flagler. siIce its early days, has been
a director.
The fact that the Morgan firm had |
become interested in the financing of |
the Florida East Coast Railway nat
uraIly 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 DOM
inant. 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. IL extends into |
Florida. The lines of the Plant Sys-
TEN, which was merged with the At
lantic Coast Line in 1902, reach Fam
pa. whence a direct service by steam
ship is maintained to Havana.
II was the Morgans who sold the
Louisville & Nashville to the Atlantic
Coast Line a few years ago. after John
w. Gates had got control of it, and
their relations with the Coast Line
have since then been close, although /
no members of the firm are directors
81 sha roflr0od oop,ponu