The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-26
THIRD AVENUE BONDS
OFFERED TO PUBLIC
Whitridge Tries New Plan Of
Selling Issue Of $4,000
900 Direct.
SAVES BIG COMMISSION
Present Stockholders to Have
Preference-Proceeds to
Retire Notes.

Frederick W. whitridge, president Of
she Third Avenue Railway Company. an
nounced yesterday a plan OF financing
which is entirely new in this city and
which means a radical departure from the
old method Of dealing with fiscal agent
who In turn disposes of tho securities 70 |
the public at commission. Mr.. whltridge
proposes to sell 100000 first refunding
mortgage 4 per cent. bonds OF the Third
Avenue Railway Company direct TO the
public.
Sealed bids will be received for any or
all Of the issue at the Office OF the COM
pany at 130th street and Third avenue
on March 10. Accrued interest will be
added and the company will reserve the
right to reject any or all proposals. In
making the allotments stockholders of
record of March are to have preference.
and to assure this privilege tho transfer
books will be closed from March TO
March IL.
There has been great deal OF
criticism of late.' said Mr.. Whitridse
of bankers commissions in the matter
Of corporate financing. and especially OF
financing by bankers who have any In
terest in the corporation seeking funds.
The credit Of tho Third Avenue Railway
Company Is good. and I am determined 10
try this plan. i am sure that II will he
successful. OF late the country has gone
crazy over the matter of corporate
financing. and believe that tho selling ~
securities direct to investors without
letting them first pass through tho hands
Of the company's fiscal agent was one OF
the reforms advocated"
The plan will be watched with interest
by those interested in corporation fnanc
ing all over the country. 1t IL not un-
likely, IL the Offering Is successful. that
other corporations will follow. for by so
doing they will save commissions aggre-
eating from a fraction OF I per cent TO
s per cent OF higher. Such a saving IN
an issue totalling several millions would
amount TO many thousands.
The proceed OF the Third Avenues sale
will be used to pay two notes amounting
to S2,S3s.7S1. representing the remainder
of the purchase price OF the securities of
tie New York City 1nterborough Rail-
way Company and the Belt Line Rail
way Corporation and for other corporate
purposes On the payment Of these notes
3l,750.ooo first mortgage per cent gold
bonds and S734.0oo stock OF the Belt
Line Railway Corporation and 31.102.0O0
bonds and s4..21.000 stock OF the New
York City marlborough Railway Com
pany will pass under the lien OF the
Third Avenue first refuding mortgage.
The bonds offered are part of an au-
tkorized issue OF $4,000. 900. OF which
315.7s0,000 are out standing. OF the
purchase price % per cent. will be payable
At the Central Trust Company on ac-
OeptAnce VI any proposal. and the re-
mainder at the call OF the railway COM
pany On fve days notice when the bonds
are ready Tor delivery, or payment may
be made In full when allotment Is made
The issu. Of the bonds will strengthen
the financial position of the company. az
the annual interest charges on them Will
be but $4,000, whereas the annual in
tersst charges on the notes 10 DO paid is
9l76.0 900.