New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-11-27
B. & O. ISSUES
S6O,OOO,OOO BONDS
Kuhn, Loeb and Speyer
Take Mortgage on
Railroad Property.
NEW CAPITAL
ISSUE BY ATCHISON
Morgan Firm Buys Si0,000,000
Preferred Stock, Which Is
Placed with Investors.

The recent marked improvement in
investment conditions was reflected
yesterday in the announcement of two
important railroad issues. The Balti-
more & Ohio Railroad sold TO Kuhn,
Loeb 4 Co. and Speyer d Co. $4,000.
900 per cent refunding and general
mortgage bonds and the Atchison, To-
peka & Santa Fe disposed of 100000
shares (SlG,000,000) Of its preferred
stock to J. p. Morgan & Co. This
stock is part Of an issue previously au-
thorized, but held in the company's
treasury.
President Daniel Willard stated that
the Baltimore & Ohio issue was the
first made under the company's new
S60O000,00O refunding and improve
ment mortgage authorized by the
stockholders year ago. Part of the
proceeds of the S60,000,000 issue is TO
be used, he said in redeeming 100000
600 of notes maturing S20,000,o00 in
1917 and S20,000,000 in 1918. The re
mainder Will be used for other corpo-
rate purposes. That the notes will be
retired prior to their maturity was in
dicated in the announcement of the
new issue. The bonds will be a legal
investment for savings banks and life
insurance companies in New York
State.
The notes to be retired were sold
only last May. They are redeemablo
as whole on six weeks notice at a
premium equal TO one-quarter Of l per
cent for each six months between re-
demption and maturity dates.
The feeling in bond circles yester-
day was that the Baltimore & Ohio
issue would command a good price. Tho
Baltimore & Ohio is the first of the
big railroads that has attempted to
finance its needs in the form Of long
term bonds for a considerable period
Virtually all the carriers for more than
a year have had to resort 10 short
term notes to take care of their needs.
]. P. Morgan G. Co. announced that
all of the 100000 shares Of Atchison
stock purchased by them. had been
placed with private investors subject
to the approval of the sale by the
Kansas Utilities Commission. The i'm
provement in the demand for railroad
securities was emphasized in this
transaction, as no railroad has under
taken to finance its needs in this fash
ion on a large scale since the Great
Northern sold S19,000,000 stock IN
March, 1914. In May, 1913, the Penn.
sylvania Railroad sold $i5,3S7,75O OF
its stock.
As to the reasons for the Atchison's
financing. the statement was made that
the company desired to strengthen It's
working capital, so that it won d be IN
position. when the time arrived, to
carry on such improvement and better
ment work as might be deemed essen
tial. without resorting to new financing
at time possibly more unfavorabie
for the disposal of fresh securities;
The company's last annual report dis
closed a cash balance Of about $40
OOO, 900. which, with the proceeds OF
the sale Of stock. will provide a sub
stantial sum for improvement pur-
poses undertaken in the near future
The Atchison in the year ended June
30 last recorded the largest earnings
in its history, showing a balance Of
surplus over preferred dividends equal
to 9.1s per cent on its outstanding
common stock.