Hearing Before a Subcommittee of the Committee On Naval Affairs United States S
Hearing Before a Subcommittee of the Committee On Naval Affairs United States S
Harrison Fairfax
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He was very much elated; he deemed it a great achievement, as it was, to have brought the credit of the railroad to the point where it could sell 4 per cent bonds. 25 Mr. Lyon: But not at par? Mr. Harrison : But not at par. He believed that those bonds would be selling in the nineties within a few years, taking rank, as they became seasoned, with other bonds of their class, which were selling in the nineties. With that confidence in the future, and with that first sale of those $20, 000, 000 of... bonds, Mr. Spencer invested the proceeds of that $20, 000, 000 in improvements and betterments of the Southern Railway property. He began the policy of double track; began the policy of im- provement of terminals but within six months after that time he was dead. He had committed the company to large plans, to large contracts, to large obligations during that period, in the confidence that the $5, 000, 000 a year of those development bonds which the mortgage pro- vided might be issued for betterments and improvements could be sold currently with their issue.
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