The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-01-28
PENNSYLVANIA SELLS
S49,OOO,OOO IN BONDS
Kuhn. Loeb & Co. Takes Issue
Kew York Central Plans I'll
nancing Of S1OO.000,0O0.
ERIE ALSO IN MARKET

The largest railroad financing that has
been done In over = year was announced
a. accomplished or Immediately impend-
ing yesterday. when the Pennsylvania
Railroad sold an issue OF $i9,0O0.0O0 Of
its consolidated (now flrsD mortgage ~
per cent bonds to Kuhn. Loeb 4 Co. and
the New York Central made prcpara-
tons to bring out very shortly an issue
OF bonds expected TO amount to $780,
100000 OF per cent. refunding con-
Vortiblcs.
In addition the Erie it Is known. Is
about to announce the completion OF its
plans for the financing of short term
notes and other requirements. IN issue
Of approx lmately t3,0UO,0O0 New York
State Railways first consolidated mort
gage 40 per cent. bonds also was sold
20 J. f. Morgan n Co. Harris, Forbes Il
Go. and associated bankers will join in
Offering the latter.
Financial interest centred in the Penn
sylvania issue for the day, as Its terms
were definitely announced The bonds
which are to be offered publicly in a
short time at price expected to be
around 1913, were Immediately SOLD on the
curb when issued" at prices from 1906
10 1855. closing at 105a.
Tho bonds are due August !, 1860. The
sale Of this block closes the mortgage
which was made In 1873 and is limited
10 NlVV,UNV,NUU. lNnnSNlNdllla vs. OF lJfN
closed only y lower than the day before
on tho Stock Exchange.
Tho proceeds OF the Pennsylvania bond
sale II is understood will be used toward
paying off the sS6.s27.0Oo 3]s per cent
gold honus maturing october I, the bal
Rnce Of this Issue probably to be taken
care OF through further later financing.
RumorS were current that the sale of
the PENNSYLVANIA bonds to Kuhn. Loeb
Co. had 90 certain extent held up
New York Central financing TO tho amount
~ 500, 600, 900. for a time at least. Tho
Central bonds are Intended to take cara
~ the maturities Of the read for some
time. That road alone has some $780,
10000 maturitles falling due this year.
without considering several different is
sues which ma turo serially and must also
h" considered In 1915 naturities.
Tho Erie has made application 20 the
Public Service Commission OF ths Second
District for permission 10 increase to per
cent the rate OF interest on two issues
~ bonds, winch cover essential portions
Of the main two freight lines between
Chicago and New York. The bonds on
" hlch the Erie wishes 10 Increase the
interest rate are t7,io0,000 Erie ana New
Jersey tirst mortgage 4 per cent, bonds
and $4,000. 900 Ceuesee Railroad nrst
mortgage per cent. bonds. Both issues
are now owned by the Erie and are
pledged as security for note issues which
mature this year. II the Public Service
commission agrees TO the proposed plan
tho company Will probably sell these
bords to take up the maturing notes.
The Erie has Sc 900, 900 notes maturing
on Mach |, sl0.0O0.O0O on April 1 and
H,5jO,00O on October 1. The bonds which
tho Erie plans 10 sell will total ,i3, 400, 900.
With the proceeds OF the sale of these
bonds It IS proposed 10 retire the
s6,0oo.ooo notes maturing in March.
S2.500.OOO of the notes maturing In April
Pnd the S+55O,000 maturing October l.
The unpaid balance of the April naturi-
ties, $1,000 900 II is understood, will he
extended for two years. This financing
Will clear up all the Erie floating debts
and maturties falling due before April /,
1917.