The Birmingham age-herald., 1914-05-27
Railroads Planning to Con- centrate Obligations Into
 Single Big Issue
SAVING WOULD BE
 ENORMOUS ITEM
Some Gigantic Propositions of This Character Would be Under Way If Conditions Were More
 Settled
By HOLLAND.

New York. May 26.--(Special) IA few days ago an issue aggregating ss5, ,0Oo 900 of one-year notes of the Baltimore and Ohio Railroad company was sold to New York bankers on a Az per cent basis. These notes did not remain long upon the bankers hands. With the exception of such portions of the notes as the bankers may have desired to keep the issue was oversubscribed by those who had capital to invest. There were twice as many subscriptions received as there were pur- chasers of the notes. That is to say, the subscriptions aggregated $70.0oo00o.
 Behind these notes stood the credit of the Baltimore and Ohio Railroad com pany. But the swift marketing of them furnished another illustration of the fact that capital exists in abundance for in vestment in high grade securities, espe- cially those whose life is for a short time and which carry a fair rate of interest.
 The sale of these notes provides Presi- dent Willard of the Baltimore and Ohio Railroad company with money enough to take up notes which will mature on July 1 of this year and will in addition give him some $l6,oOO,0o0 which can be utilized to pay the cost of certain additions and bet terments now in progress, and also to pay for additional facilities which are now needed
 There have been this spring several in- stances of the speedy marketing of rail- road offerings in large amounts There was the notable case of the New York, New Haven and Hartford company's ob- ligations, notable because this railroad company is now facing serious embarrass- ment, and under its new management is endeavoring to build up and to restore the property to its former prosperous condi- tion.
 Yet an offering of it's notes aggrega ting apout s6O,oOo0U was accepted upon the in- stant. Other railroad companies have in this way and with great ease financed large and pressing obligations. All of these transactions show that the faith of the public. and especially of great capital Tn the railway properties of the United States has not been greatly impaired.
 Some Very Great Financing
 Were business conditions normal, and had the railway companies of the United States thoroughly adjusted themselves to the laws and to new business conditions 1t IS probable that the country would now be learning of some of the greatest financ- ing transactions since large financing was appealed to so that the railroads might expand and be improved
 One of these transactions might be at the present time under way, and is certain in a time not distant to be Undertaken by President Willard in the name of the Baltimore and Ohio Railroad company. The company proposes to perfect A very broad and far-reachfng plan whereby the financial and fiscal system will be simpli- lied, harmonized and made easy to handle Ihis arrangement will probably take the form Of general mortgage. The terms or this will be set forth in one deed where py all the properties of the Baltimore and Ohio and it's very valuable terminals in New York and Chicago will be nominated as the security for this mortgage. The transaction should also provide the mea ms by which the present funded debt of tbe system may be cared for and also for con templated improvements and expansions in the future
 Of course, nothing more than an e.t,- mate which may or may not be approx imately correct of the aggregate amount of the bonds Issued under this general mortgage is now possible. In the f1nan- c1al district of this city the impression is general that the aggregate face value of these bonds will not be far from $500 : WU'WU mere are, or course, many details to be worked out. For instance, a pro- vision that the bonds may be issued in a series and that the rate of interest may so be fixed on each series as fairly we'll to represent the conditions prevailyine in the money marekt at the time of the issue of the series.
 In Line With Others
 This compensated action in line with proposition which have been earnestly considered by some of the larger railroad