Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-13
EXPANSION PLANS
ON BROADER SCALE
Big Industries Show Faith in
Future by Improve
ment Programs.

Special Dispatch to the Star.
NEW YORK, october l2.-Several
pieces of financing this week, involving
the issuance of $3.50, 900, 900 of securi-
ties. indicate the promotion Of plans
and an expansion in industrial and
railroad operations on a scale that
would not have been attempted If the
outlook for business had not been con-
sidsred promising,
This financing includes the 500, 000,-
900 issue of Texas Corporation S per
cent convertible debentures. the pro-
posed $4o0oo,o 900 of New York Central
stock and approximately $4,000, 900 of
Pennroad stock. a $10,2O0,000 offering
today of New York Central Equipment
trust certificates and an additional $780,
000, 900 of stock by the Western Elec-
! trio Co.
| None Of this money is to be used for
refunding purposes. 1t represents en-
tirely new capital available for expan-
sion purposes. In the>e ease OF the Texas
Corporation it is to be specifically APP
piled to development of the company's
activity in providing larger producing,
transportation, refining and distributing
| facilities for its subsidiaries. This In
| dicates that in spite of the high rate OF
/ production of oil and unsatisfactory
prices for crude, the largest Of the In
| dependent companies Is going ahead
and making investments in its field on
which 1t expects to realize a high rate
| of return later on.
| Identification Plan.
The New York Central stock issue is
| to be applied to the identification OF
| lines within the New York City area
! trust certificates sale are for the largest
single purchase of cars and locomotives
made in many months. It follows out
| the plans of other railroads of building
up their equipment units after several
years in which they had been increased
| at a slower pace than at any time since
| the carriers came out of Government
control The railroads are also buying
more freely of rails, with a recent
largest ever placed.
| The S30,000.000 of new money to be
| available to the Western Electric Co.
, will go to enlarge plant facilities In
connection with the output of this con-
Germ for the American Telephone &
Telegraph Co., and other customers
and in which, 1t is understood, tele-
vision and talking movies play an I'M
portant part.
The additional stock to be issued by
the Pennroad Co. at $3.50, share and
amounting to just short of $4,000 00C
supplements the $87, 100000 Of original
stock at SIS share put out last April
giving this so-called railroad invest
ment trust total capital OF $137, 000, 900
With the proceeds Of the first issue
! the Pennroad Corporation purchased
the stock of the Canton Co. of Balti-
more a large terminal and warehouse
project in that city, as well as control
of Henry Fords road, the Detroit
Toledo 81, Ironton, and afiliated COM
panies, with land for industrial and
terminal development in the Detroit
district, a substantial interest in the
stock of the Raritan River Railroad
Co., which is of strategic value to the
Pennsylvania Railroad in highly In.
dustrialized section of New Jersey, anc
the stock of the National Freight Co.
Other Investments.
It is also understood that investments
were made in motor bus and motol
trucking companies which are feeder;
for the Pennsylvania Railroad, and ir
other terminal projects in the Penn
sylvania territory, as well as in air
plane companies with which the Penn
sylvania has made a traff1c alliance.