OCR Text |
Show AN INCONSISTENT MOVE. The New York Central railroad has applied to the Public Service Commission Commis-sion to issue 4 per cent bonds to tho amount of $167,102,400 for the purpose pur-pose of taking up 3 per cent bonds now outstanding against tho property of that railroad and of tho Lake Shoro and Michignn Central. This Beema to Senator George W. Norris of Nebraska an outrageous, indefonsible, and wholly 'unjustifiable proposition. Ho wants to know why it is thTtTS;:siM would want "to issue 4 .! 7 I to redeem 3H per coaLrM road should bo wiling0 higher interest charges is ,4B that ho announces ho I5H Stand Accordingly, he a resolution in th0 Senab I the Interstate Coa?r to report "all the facta .Sr! stances of tho case" to r,6 But it should not bo Senator Is orris that a Tni0,lis pany in thoso times 0f mJM handling bonds ahouiaSM pay one-half por cont ster ccbs of tho interoat cha Standing bonds, in order to VS bond system, and to get rfd outstanding issue of this vi-j iMh. is to bo noted that the bond i by no means good, and a nnifw first-class bond issuea l,avo JSB counted heavily, Rnd ev ilM with difficulty. 61 flBf Besides, tho New York CundK simply following along pear to bo necessary, and JTM. fact, havo an official precedent Bf. propoBed action of the Uaitel Kl'( itself; for under tho WlWm.MT roncy bill, the United States mH to retiro aorao $700,000,000 of Smtl cont bonds and issuo 3 pQr ceat'S' in placo of thorn. Here i9 aa JH of yearly iutorost amounting to fcfl 2 000 proposed by the UnitedlH'T whereas tho Now York OeabJBr poses an increaao of only halfjBli por cont, or $800,000 a yeu Hr exohange of bonds proposod. Hiff Tho United Statos povonajH proposing tho increaso of 1 pJS on its $700,000,000 of 2 par cant flf , is sotting an eramplo of fiuggBl the nature of which SonatorUI nnnounces that ho cannot undriHlT He had better apply his vrkjHu energy to the Democratic eidi.qSF Senate chamber, and remoostraifB I ' tho Democratic Senators sgaiiJH)! wasteful change that thoy piopjflf the issuo of U. S. bonds. If ItBr persuado them that tho issue ofBl cont bouds in place of tho 2 paBj bonds is bad financial policy, iBf then bo timo for him to tskj i9 comparatively small matter of tifl r posed increase of one-half of CftflrU cent interest by tho New York CMl on a bond issue of a compuiHJ. small amount. |