The Washington herald., 1921-01-27
PENNSY TO DECIDE
ON DEBT INCREASE
in MARCH SESSION
Stockholders in Railroad
Called to Record Vote
On Subject.
PROXIES ARE ASKED
Directors Want to Secure
$1O0,0OO,OOO to Help Sub
sidiary Lines.

Authorization OF an increase in
the Pennsylvania Railroad Com
pany's indebtedness of 500. 900. 900
will be submitted for consideration
and action by stockholders at the
annual meeting to be held in Phila-
delphia March s, it was announced
here yesterday.
Two other important subjects to
be acted upon at the meeting are
as follows:
Lease Ratification.
ta) Ratification Of long term
leases Of sixteen railroad properties
now constituting portions of the
Pennsylvania System and controlled
through ownership OF all or practi-
Cally all of their capital stOck-the
most important being the Pitts
burgh, Cincinnati, Chicago and St.
Louis Railroad (the 'PanhandleDr
the Grand Rapids and Indiana Rail-
way and the New York. Philadel-
phia and Norfolk Railroad.
(b) Changes in the dates Of the
annual meeting and the annual cleo
lively, on the second and fourth
Tuesdays of March, so that they
will be held hereafter on the sec
Ond and fourth Tuesdays in April.
Proxies Requested.
Requests for proxies for the an
nual meeting of the stockholders Of
the Pennsylvania Railroad Company,
which will be held in this city on
March s, are being mailed today
from the secretarys 5 office, Broad
Street Station.
Accompanying each request is a
circular letter from President Samuel
Rea, explaining in detail, the sub
jeCts to be acted upon at the meet
ing.
The leases for which ratification
is asked have been negotiated in
conformity with the COmpany's pol
icy Of consolidating the Pennsyl-
vania Railroad System and simplify
ing it's corporate organization, for
the sake of operating and account
ing economies.
The request for authority to in
crease the Indebtedness should be
carefully distinguished from an ac-
tual issue of obligations. It is re-
uuired in order that the Pennsyl-
vania Railroad COmapny may be in
position not only to do its own nee
essary financing, but also to enable
II. if required, to assist its subsid
iaries in meeting their very large
maturities during the current year;
TO settle accounts with the govern
ment, which, spent large sums upon
the property during Federal con-
troll; and to acquire such additional
equipment and facilities as may be
essential The authority requested
is desired in order that the board
may be adequately empowered to
act as circumstances make neces-
sary.
More Time Wanted.
The changes in the dates Of the
annual meeting and election are
requested in order that more time
way be available to close the ac-
rounts of the 142 corporations con-
stituting the Pennsylvania System.
so that overtime clerical work, now
necessary, may be avoided 1t is
hoped in this way to save in over
time approximately the cost of
printing and issuing the annual re-
port.
As a two-thirds vote OF the stock
holders, now numbering over 1928,
OO0, is required by various State
avs on the proposals relating to
the leases and the changes in dates
nf the annual meeting and election,
unusual efforts will be made this
year to obtain the necessary proxies.
ID =
letter, urges all stockholders who
are unable to attend the meeting in
person not to fail to send in their
r-r.Nien