New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-04-10
NEW PR. R. STOCK ISSUE
$45, 100000 Authorized to
Finance Maturing Obligations.


Philadelphia, April 9.-The directors OF
the PENNSYLVANIA Railroad to-day author
lied 10 per cent stock issue, amounting
TO about 100000. This means that a
stakeholder has the right to subscribe at
par for new stock to the extent OF ~
per cent of his holdings
Payments may be made in full or III
amounts divided into two instruments OF
20 per cent each and one of 40 per cent
Shareholders of record of May VIII be
eligible to subscribe. About May 10 war
rants Will be issued which must be re-
turned on May 81, accompanied by pay
ment in full or the first instalment OH
the subscription. Fractional share re-
ccipts VIII not draw interest nor be CHI
titled 10 dividends until converted INTO
full paid shares, and only when the frac-
tons make full shares will the exchange
occur on or before January 81. 1911. After
that date fractional receipts not converted
will be redeemed I'm cash at $50 share
the par value Of the company's stock. On
the final payment Of the instruments, the
company will issue a check for interest
at the rate of per cent year on Inc
first instalment from May 90 1913, on inc
second nstament from August 20. l'l5'
aud on both to November %. 1919, which
will amount 10 IS cents "A share. The
right TO receive stock shall not be ac-
corded any stakeholder unless the terms
of subscription have been fully compiled
with.
As a reason for the present stock ISSUE
President Rca, in his annual report, saiu
IL would soon be necessary for the COM
pany TO provide capital for the slo2--'OV"
Of tcn-ycar gold convertible 3ia per cent
bonds. which matured on November j.
1912. and for 50 73j, 900 collateral trust loan
A. per cent bonds due June ], 1918, to
gcthcr with maturing equipment trust
obligations and also for new construction
of terminal track facilities and purchase
OF equipment.
proceeds OF tho issue will bo used TO
provide for 100000 paid OFF last year
and the s9,135,Oo0 collateral trust Az per
cent bonds due juno next This VIII
leave about sos 900, ooo which is the usual
sum required yearly by the company Tor
ordinary purposes.
II IS probable that car trust certificates
will bo issued in the near future to pro-
vide for 1900 freight cars ordered by
tho ennsylvania system this year.
Following the announcement Of the new
PENNSYLVANIA stock offering rights were
traded I'm on the curb here to the extent
Of about 300. 900 before they were trans
fcrred TO the exchange, prices ranging
from q. To- "a. with the greater dividend
charges in prospect, the stock declined 70
1854. or Sis points from Tuesdays CLOS
inc nrIce. AS the Pennsylvania pays .
ner cent annually IN dividends, the new
stock calls for an increase of $1,000"
capital expenditure.
The Offering of approximately A0'""V'
OF stock Is n part OF II total authorized
issue OF S.0o0,Oco. OF which as'g'o"'' o'
ela o6s 90 including amounts reserved io'
convertible bonds, g. now outstanding
The last Offering was I'm 1911. when share
hoIaerS had the right 10 subscribe at PAL
for sat 26I 900. Tho Offering previous u
! that was I'm December 1902. when Po-'
5t7. 500 WAS distributed to stockholders 'c
tho extent of % per cent Of their holdings
pe,rsylvauia is what is known as "A nall
stock the par value being 80 "A snare
In the resolution increasing the stoch
the directors say that the funds are neces-
sary to provide for substantial additions
md betterments to the company inc
for equipment. property, etc.