Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-06-08
.FR|SCO'S FATE
|. IS NOT FACED
BYOTHERL LINES
Maturing Obligations of Weaker
Roads for Rest of Year Quite
Well Taken Care Of.

Inability to arrange financing in
these times of high rates for railroad
money having been the immediate
cause of the Frisco receivership, it
is natural for investors to see wheth-
er there are any others that are like
4y to come to the same insurmount-
able interest wall that blocked the
Frisco. With railroad earnings i'm
proving in fair volume it would be a
default in principal of a maturing OBJ
legation and not a default in interest
that would cause trouble.
A study of the list of railroad Sc
curities. however, does not disclose
any other road that in the near future
will have the same problem as the
Frisco to face, with the possible eX-
ception of the National Railways of
Mexico. TIE maturing railroad obli-
cations for the rest of the year are
pretty well cared for.
A. 3. G.. AS Condition.
Practically the only exceptions. be-
sides the one noted, are $4,1O0,0OO
Atlanta, Birmingham & Atlantic re
ceivers' certificates due July I, and
$4,000. 900 Wabash receivers certif-
icates due August !.
But rs these roads are already in
receivers hands they can not go fur
Their New Haven has S4O,0e0,00O of
one-year per cent notes due De
Cember 1. the largest uncovered ma
turity yet remaining this year which
might give some difficulty If invest
ment conditions and New England
railroad conditions have not. changed
by that time, but which there is no
doubt will he financed.
II has been reported that arrange
ments were made for the extension OF
the $4,000 National Railways Of Mex
leo two-year 4 II per cent notes
which fall due to-day. but IL is by
no means certain that trouble win be
avoided in meeting this maturity.
The reported hitch i'm the negotia-
lions for the S75,0O0.O0O Mexican loan
is unfortunate for the railroad COM
pany, the sale of S27, 5000 600 of whose
s per cent notes is contingent on the
contamination of the Government
loan The maturing notes are Sc
cured by S6,0O0O0o prior lien bonds
and $1,000, 900 general mortgage bonds
of the National Railways.
N. c. G. ST. L. Securities.
In July there are S11,557,0OO Cincin-
udlls flhHlllOu " layton cOllaIefdI
trust 4 per cent notes maturing
which are guaranteed by the Balti-
more & Ohio. No announcement re-
garding these has been made, but
no difficulty in meeting them is an
tiCipated
Other maturities Of the month are
$4,000, 600 Nashville, Chattanooga q St
Louis 8 per cent bonds. to be retired
by the recent stock issue. the 81 ZOO.
900 Atlanta, Birmingham & Atlantic
receivers' certificates mentioned
above; S3.39e.00O Erie per cent bonds
already extended for 80 years at
per cent, and $1,000 600 Morgan's Lou
tsiana & Texas genera mortgage
5s, for which no arrangements have
| been announced.
After that there are only $4,000 OOf
Hooking Valley two-year IL pei
cent notes due November /. and s.. =
$4,000 Frisco divisional first mort
gage 5s in addition to equipment OBJ
| legations and ;he Wabash receivers
certificates noted the likelihood al
! any other roads being forced into re-
| ownership because of the dif7cult,
or arranging financing at the present
| time.