Preferred stock-Continued. For general corporate purposes (not segregated), sale to meet matured funded debt, sale to meet unfunded debt, and sale to redeem stock_------- $49, 157, 000. 00 For reimbursement of treasury for capi tal expenditures not capitalized____ For reorganization_. Total___ 3, 403, 500.00 Prior-preference stock: For exchange for unmatured funded debt___ 211, 282, 700.00 $272, 688, 563.93 56, 100. 00 For sale to meet matured funded debt__ 51, 454, 700.00 Total 7,947, 100. 00 267, 950, 801. 00 1 2, 149, 867 540, 695, 464. 93 12, 149, 867 182, 873, 693.00 Bonds, mortgage-Continued. For acquisition of securities of other talized, and in lieu of bonds and stock For additions and betterments (nature For construction of new lines, exten- For construction of new lines, etc., and For exchange for matured funded debt__ For general corporate purposes (not seg- For pledge---- For refunding purposes.. For reimbursement of treasury for capi tal expenditures not capitalized_-For reorganization__. For retention in treasury subject to further order For sale proceeds used for capital pur poses, including acquisition of equip- For sale to meet matured funded debt-- · Total___ Total bonds____. Debentures: For reimbursement of treasury for capital expenditures not capitalized. For sale to meet matured funded debt--Assumption of obligation and liability in in respect of $5,700,000. Total___. Under paragraph (9) of section 20a certificates of notification of the issue of notes, maturing within two years, in the aggregate sum of $125,480,047.63 were filed. The Alameda Belt Line, the Albany Passenger Terminal Co., the Atchison, Topeka & Santa Fe Railway Co., the Carolina Southern Railway Co., the New York Central Railroad Co., the New York, Chicago & St. Louis Railroad Co., and the Pennsylvania Railroad Co. filed applications for authority and were authorized by us to issue common capital stock to provide funds for making additions and betterments, improvements or extensions, for paying funded 1 Shares of stock without nominal or par value. debt, or to reimburse the treasury on account of expenditures made for such purposes. An application of the West Virginia Midland Railway Co., pending at the close of the period covered by our last report, for authority to issue common capital stock to provide funds with which to construct an extension has also been granted. The Carolina Southern Railway Co. and the New York, Chicago & St. Louis Railroad Co. made application and were authorized to issue preferred capital stock to reimburse the treasury for capital expenditures. The Long Island Railroad Co., the Old Colony Railroad Co., the Pennsylvania Tunnel & Terminal Railroad Co., the Western New York & Pennsylvania Railway Co., and the York, Hanover & Frederick Railway Co. made application for authority and were authorized to issue common capital stock in payment of advances made by controlling or lessee companies for capital expenditures. The foregoing applications covered the issue of common and preferred stock in the aggregate amount of $191,678,951 and $3,403,500, respectively. The encouraging feature of this method of financing was pointed out in our thirty-sixth annual report. The St. Louis-San Francisco Railway Co. and the Western New York & Pennsylvania Railway Co. made application to issue preferred stock in the readjustment of their respective capital structures. They were authorized to issue for this purpose stock and scrip in the aggregate amount of $56,167,268.93. The readjustment of the capital structure of the company first mentioned, involving the issue of $132,979,700 of mortgage bonds, also authorized, resulted in the reduction of the carrier's ratio of bonds to stock, the ratio prior to the readjustment being 4.19 to 1, and after the readjustment 2.44 to 1. The readjustment also resulted in a reduction of $823,306 in the annual interest and dividend requirements. Such readjustments are to be commended and should be made where possible. An application for authority to issue $39,029,000 of common stock in conversion of 6 per cent convertible debentures was filed by the New York, New Haven & Hartford Railroad Co. This application has been granted. Applications of the Missouri-Illinois Railroad Co. and the Pittsburgh & Lake Erie Railroad Co. for authority to issue common capital stock as a dividend were pending at the close of the period covered by our last report. These carriers were authorized to issue for that purpose capital stock in the aggregate amount of $7,947,100, par value. At the beginning of the period covered by this report applications by the Ashland Railway Co., the Atlantic & Western Railway Co., the Chicago, Milwaukee, St. Paul & Pacific Railroad Co., the Georgia, Florida & Alabama Railroad Co., and the Kansas City, Mexico & Orient Railway Co. for authority to issue securities in connection with the reorganization of predecessor companies, or the acquisition and operation of the properties of such companies were pending. Applications for authority to issue securities for like purposes were filed by the Alabama & Western Florida Railroad Co., the Burlington, Muscatine & Northwestern Railway Co., the Chester & Mount Vernon Railroad Co., the Elkin & Alleghany Railroad Co., the Louisiana & Arkansas Railway Co., the North Louisiana & Gulf Railroad Co., the San Luis Valley Southern Railway Co., and the Saratoga & Encampment Valley Railroad Co. These applications, with the exception of those of the Alabama & Western Florida Railroad Co. and the Louisiana & Arkansas Railway Co., which are pending, have been granted, in some instances with certain modifications and upon terms and conditions deemed necessary and appropriate. In the reorganization of the properties of its predecessor, the Chicago, Milwaukee, St. Paul & Pacific Railroad Co. was authorized to issue 2,088,429 shares of common stock without nominal or par value; $211,282,700, par value, of preferred stock; $106,395,096 of 50-year 5 per cent mortgage bonds; and $182,873,693 of 5 per cent convertible adjustment-mortgage bonds, 914,369 shares of the common, and $91,436,900 of the preferred to be used as necessary in conversion of these last bonds. The defects of this reorganization are pointed out in our report. It seems appropriate to note here that in the last several years we have permitted to become effective a number of reorganization plans involving capital structures, which, like that just referred to, left something to be desired from the point of view of fully sound financial standards. We have done this in full appreciation of these shortcomings, and solely upon the ground that the major public interest seemed to us to require that the properties concerned should at the earliest possible moment be released from receivership and restored to active management by those financially interested therein. The Chesapeake & Ohio Railway Co. made application for authority to issue $59,502,400 of common capital stock in connection with its properties to acquire control of the Erie Railroad Co. and the Pere Marquette Railway Co. We authorized it to issue $20,000,000 of stock in connection with the acquisition of control of the Pere Marquette. Upon petition of the carrier that certain modifications be made in our order authorizing the issue of this stock, the proceeding has been reopened for further hearing. On further hearing, applications of the Gainesville Midland Railroad Co. to issue securities in connection with the reorganization of the Gainesville Midland Railway and of the Seaboard Air Line Railway Co. to assume obligation in respect of part of these securities |