New-York tribune., 1909-02-20
Rig NEW BOND ISSUE
nv SOUTHERN PACIFIC.
nmou Stock of $4,000, 900 to
p,o,ide Bond Issue of $50, 900 900.

.i-r-ts-E q the Southern Pacific company
- adopted resolutions asking the stockhcld-
=, rbs annual meeting OF April 10 authorize
e .-ssze q the common stock by sEoa.ooa1oo. Of
= - - mich IS necessary IS to be set aside 10
80 for an issue Of about IS. 9lo ,0oa per cent
.,,ss- bonds. convertible until June l. 1913 at
.,,on u the holder. into common stock al $50.
Us % .sss-,zble A. l15 on March !, 1914 or On any
s..rnss1 interest day thereafter
- -.--rsrv has outstanding es.S52.S21 common
= ert q sn authorized SesaoN00a. and s-as6S. so
- os1t OF an authorized sloo.9oo.era Both
- snd preferred stock holders of record at the
-, - business aa March IS may subscribe on or
-. A--fl . fo- the new bends 10 the extent Of
- -snt q their respective holdings s. with
= . '-s.,.s---en- Of interest After deducting the
- sllettzb5e 70 the oregon Short Line Railroad
~.-.-z-s pro rata Of It's stock holding there re-
,5s available for subscription by other stockhoId-
: e a 90 o. the bonds. which portion has been
-ss-u-rrsn by Kuhn. Loeb & Co
-gs ozscisl announcement e the directors action
...c-stes as follows TIE unfun9ed expenditures OF
- eorupany and the present requirements. which
g. 70 Re met y the new bond issue:
=. S+sre5 in the last annual report Of the com
Tsny s 9aEaoSs y = % m ne PsoPFesaTE con-
gSians bs-1s-ueuts. equipment and terminal prop
e. sS e. a s1uisiton Of properes deemed important
"a IRE deveoPnle1- q the business OF n the eco
nancal operation q the proPerties Of The several
coupsIss 90 s1.s T,-9,sss m 70 J491e 81
- amounted - s1oS-SS2.s .ss4 s.. and were for:
,.,s--v.,soz q rev lines 70, vet financed
-ss r75z-iss directly cElzinS SO SO Ie4
Fsrss-sS F3- go = r. ---- - Il sos 20 %
ss ss.ss5EAs % ana oshe- aossing eiTsa5 77eoea5I IS
s.s s.si5si sssstt -ssi estate i ssn FIsacisoo snd
iucsli-lsS 15.St1-so %
-gsi SOS So So es
"a the Los Angeles RsiiUzv and stocks
sza bonss q ths Assoctzysd q. Co.s-sny.
Electric railway. ne Nc-tE-
@ssssrn Pacific Rsilroad a7d q other
ss-ps1fs- as shown detail ths
sz19sl -ePort. sad ~hich are free asset
r Se-d-so-SSS
To.., .-..-........... .sI4I.es9i7 10 ss
49, A-leSs- 81 1s5S fsc similar acoo1ats 124sa 7s2 IS
-O,., 80 Dsce-se- 81 -sls4 SIS a08 3
As a Tssa1 ths cou,rany nov REQUIRES
Fa 6sehzrEe q os1-s1s5etnE cans 80 IS as %
:, - :ss,s.si sss.4 sss.-.:, s5s 60
- ne coast-uctIo1 q new lines sutao--
issa ana already uaSe- Wsy. as stated in -
ne zz1uzl report lsFsS-e45 90
-v.al ses SIS sss %
To provide TIE funds necessary 70 meet these
present requirements a1d for future hetterr.ents
erd additions incident 70 the policy of Improvement
snd for other corporate purposes a issue OF such
bands to the amount OF about So 90 10 az this
tins IS deened advisable
Sales Of the new bonds. when issued we're
made on the curb 70 the amount of about Ssaa so
uz- -alue g. prices between So and s7sz. the
fual transaction being a. So. The rights were
quoted st = Per cent premium On the exchange.
Southern Pacific common which had declined 70
usz rose 11zS the news Of the bond issue.
she theory being thar the stock would Be strongly
supported II s6-a1ce CT the bringing cut Of the
rev securities. and = closed with Z net gain OF
per cen, a. Ls1s- The preferred closed IL
changed al =