OCR Text |
Show ; BIG RAiLROABS- jj, WANT' $419,900,000 Tremondous Sum to Bo Raised for the ' Betterment of Sixteen Lead- (i ing Systems. Tho blir railroads of the United States ( arc arranging- to Incrcaso tholr fixed A charges to meet the expense of pnst and i futuro betterments. Tho aggregate out lay required ' by sixteen corporations la 1 54O0.TO0.OCO. All this amount ha3 already been authorized by secret meetings of ! railroad directorates. 1 n inauy cases t o 1 noccssary bonds and stoclca huvo been is- 1 sued, but not distributed. ? In all cases the new srccxirItIco v.nl too- come preferred Hens on the Property and will bear Interest. Banking tntltujlonB f and the public must furnish the funds. With tho almost unprecedented appreciation apprecia-tion of securities eighteen months no all the rnJlroad companies made blp con- J tracts for bottermcms. ?' were mado for new equipment, nev. II bridges, new rails, changes In grades and f othor improvements In manv Instances notes were given the If contractors as payment- These notes aic 4: now falling due. Additional funds aro V needed to complote betterments begun or t to moke those now considered absolutely essential. DKPRECLVTION CAME, jj In tbo meantime thoro camo a depro- j! elation In values, and railroad com panics ,:t ulto not In a position to meet the obllga- t1; tlons thoy expected to pay from Increased II' receipts. Notes soon becoming duo must bo met and funds must bo provided for Ci contracts which are now being made, ill There was no alternative but to lncroaso liabilities. a. During tho past three days fifteen men i havo boon In secret session at tho rew jl Wlllard hotel In Washington. Thoy roprc- A nont all tho leading contracting llrmn In ti 1 tho United States, that practically furnish Jj all the equipment and betterments for railroads. They have been figuring on ii bids for additional work, and discussing jjl Ihc outlook- They have had beforo them fci In their deliberations tho following ll3t or -I railroads which have Issued or authorized If the Issue of additional bonds and stocks. ' j with tho amounts; ; Now Tori: Central and Lake Shoro ? -10,000,000 .,' Wabash 33.0OO.W0 Brooklyn Rapid Transit HM&JSS TTrlo EO.OW.OOO 'i Pennsylvania Ml'SK ft. Southern railway 2X5'a W Illinois Central la.OOO.OOO i ruinn Tn !iln n-nri Southern Pacific Rock Island 50.0CO.0CO Allssouri Pacific and Iron Moun- .1 tain M.000.000 I Atlantic Coast Lino Zfi.m.m Seaboard Air Line 3?S?? Pittsburg Coal company 'iS?'??? Republic Steel company ?XX! Missouri, Kansas &. Texas J'?8 3ehlgh Valley Sl.0uO.O0Q Total $1CO.GOO,000 NO REDUCTION IN BIDS. Tho Pennsylvania company has already given notice of Its Issue. The New York Central has placed lt3 fiO.000,000 of stock with J. Picrpont Morgan & Co., but It has not yet been distributed. Tho Pittsburg Coal company and tho ! Republic Steel company operate only such j railroad lines as axe used In their own business. ; It is the opinion of tho fifteen contract- 1 ore' agont3 here that thero can be no re 1 ductlon of prices In future bids, although ) the cost of material Is less. This Is duo ' I to the practice ,of paying fOr worlc In i notes. Tho contracting firms must dis count these obligations to rcalizo quickly, and this lowers the profit- There was j also a disposition to limit the volume of contracts. It was realized that an Increase In-crease of liabilities to the extent of $370.-' $370.-' 000,000 among railroads having their sc- j curltlcs llBtcd must eventuate in material reduction of selling values. At the same time, It was explained, this enormous Issue of bonds and stocks has I been anticipated in financial centers, and no aharp declines aro expected on this account ac-count The new indebtedne?s being acquired ac-quired by the great railroad lines is about i evenly divided between old and future- obligations. The Union Pacific Is said to have 522,-I 522,-I 600,000 in notes which will mature during j the next sixty days. All tho. future es timates are based on a period of eighteen months from January 1, 1501. The past and future obligations include all tho extravagances ex-travagances Induced by the boom of eighteen eigh-teen months ago and tho necessities of the present. |