The sun., 1919-02-07
SYNDICATE OFFERS
NEW BRITISH BONDS
Morgan Group of Bankers Will
Sell S30,000,000 Balance
of ) Per Cents.
RAILROAD PLACES ISSUES
Illinois Ccntral's S15,000,000
Is Taken by Kuhn, Loeb &
Co.-Other Sales.

]. Z. Morgan & Co. sent out last night
to the group Of bankers associated with
them syndicate letters regarding a pub
S3o.0o0.o00 United Kingdom OF Great
Britain and Ireland twenty year per
cent. bonds The issue represents tho
bonds taken In payment by the group
for the cash paid to holders of the
United Kingdom notes, which natured
on February ] and remained uncon-
verified into the long term issue.
The Illinois Central Railroad yester-
day sold s15.oo0,oo fifteen year 5ia
per cent bonds TO Kuhn, Loeb & Co.
who are offering them at 91ib and in
terest at which price the bonds will
yield 81 per cent, Il held to maturity.
and ga per cent IL redeemed at the
earliest redemption date.
II was announced yesterday that the
100000 Philadelphia Company notes
offered by Lee. HiEginson Il Co. and the
First National Bank had been sold.
The Chicago banking syndicate which
underworld half of the $4,000. 900
Southern Railwry notes with an option
on the balance, which otherwise would
go TO the War Finance Corporation,
stated that s13.oo0,ooo were taken yos-
terday and withdrawn from sale ma
that the syndicate had extended its or
ton to $4,000. 900, leaving s2.o00.ooU
for the War Finance Corporation.
In connection with the United King
dom bonds the following statement was
issued yesterday:
]. p. Morgan e. Co announce tina. Of
the $4,000, 900 OF United Kingdom OF
Great Britain and Ireland twenty year
3 per cent bonds. reserved for CONVEX
sion OF the two year notes, which ma
tured February !, there remain to DO
sold by the group which underworld the
conversion OF the outstanding notes q
balance of less than $50. 900. 900. or APP
proxirnately 20 per cent Of the amount
Of the issue outstanding.
The one and two year convertible
notes OF Great Britain were put out IN
January. 1917. The total issue was
$3.50. 100000, Of which 800 5000 ma
tured In one year and $4,000, 900 in
two years. When the one year notes
maturcd only a very small amount less
than $1,000. 600. was presented for con-
version. After the signing OF the armis-
tice in November, 1918. the two year
notes began TO come in for conversion
In substantial amounts and this ten
dency vas stimulated by the announce
ment that a group had been formed TO
take all the bonds which were not ap-
piled for by the holders in the exercise
OF their rights or conversion.
The notes were originally distributed
through countrywide syndicate Of
dealers and distributing banks and those
who were most active in the previous
sale will be given an opportunity to
participate in a new distributing syndi-
cate formed to place the new bonds with
investors.
c. \. Peabody. president OF the Mu-
tual Life Insurance Company and presi-
dent of the Illinois Central Railroad, in
a letter to tho bankers said in part :
THE bonds will be the direct obllga-
ton OF the Illinois Central Railroad
Company. secured by the deposit with
the Farmers Loan and Trust Company
as trustee of the following securities
having present market value of about
twenty million dollars Sl7,350.000 face
value Illinois Central Railroad Company
and Chicago, st. Louis and New Orleans
Railroad Company joint first refunding
mortgage per cent. bonds, series 4,
due December /, 1858. and s4,550. 600
face value Illinois Central Railroad
Company western lines first mortgage 1
per cent. gold bonds. due August l. 1851.
The present issue of bonds is being
sold 10 discharge obligations incurred on
account OF expenditures for additions
ami betterments to its railroads, terIn!-
mails, equipment and other facilities. The
Ill.Lois Central Railroad Company has
paid dividends on its capital stock un-
interruptedly since 1853. 1t has out
standing sl09.296,0Oo capital stock. hav-
ing a present market value OF approx
mately sl06. 900, 900 on which dividends
are being paid at the rate OF per cent
per annum.
AN. agreement between the Director
General OF Railroads and this company
defining the terms and conditions upon
which Federal control shall be exer-
cised and fixing the compensation to
be paid by the Director-Gener is
being negotiated, and will, II is antici-
rated, he executed shortly. Under this
agreement the compensation payable to
the Illinois Central Railroad Company
proper is expected to be not less tina n
$l6.2s2,00 per annum. and In addition
theI eto the company will be in receipt
OF other income estimated at about So
600 per annun,. making available fer
fixed charges, taxes dividends, &C, the
sum OF about SS2.sS4, 900. All hxed
charges of the company Uncluding In
terest on the PRESENT issue OF bonds)
taxes. rentals. sinking fund payments,
&c, are estimated AZ s12,220.0oo, leav-
ing balance OF s10,66I 900 in excess OF
OH