. Electric railway journal . 50,000 When issued. After 1st half 2d 3rd 4th 5th 6th 7th 8th 9th 10th nth 12th 13th 14th 15th 16th 17th 18th 19th 20th Table II.—Showing Course of Equipment Securities. Security Companysraes Bonds ^ year. Value ofEquipment.$1,000,000 975,000, 950,000 925,000, 900,000 875,000 850,000 825,000. 800,000. 775,000 750,000. 725,000 700,000. 675,000. 650,000. 625,000. 600,000. 575,000. 550,000. 525,000. 500,000 Bonds TiOutstanding. Ot$900,000855,000810,000765,000720,000675,000630,000585,000540,000495,000450,000405,000360,000315,000270,000225,000180,00
. Electric railway journal . 50,000 When issued. After 1st half 2d 3rd 4th 5th 6th 7th 8th 9th 10th nth 12th 13th 14th 15th 16th 17th 18th 19th 20th Table II.—Showing Course of Equipment Securities. Security Companysraes Bonds ^ year. Value ofEquipment.$1,000,000 975,000, 950,000 925,000, 900,000 875,000 850,000 825,000. 800,000. 775,000 750,000. 725,000 700,000. 675,000. 650,000. 625,000. 600,000. 575,000. 550,000. 525,000. 500,000 Bonds TiOutstanding. Ot$900,000855,000810,000765,000720,000675,000630,000585,000540,000495,000450,000405,000360,000315,000270,000225,000180,000135,00090,00045,000 Per Cent. A short consideration of the accompanying diagramshows the course of the debt clearly. The diagram is basedon semi-annual payments and shows diagrammatically thefacts given in Table II. The line marked security times. Years Electric Ry. Journal Diagram Showing Relation Between Security and DebtOutstanding debt outstanding is the one which most clearly gives thevalue of this plan of borrowing in the eyes of the of the steadily reducing amount of debt outstand-ing and also because of the condition in the deed of trustthat the title of the whole equipment stays with the trusteeuntil the last instalment is paid, the margin of safety to thelender has, at the sixth year, climbed to twice the amountof outstanding debt. From the sixth year the rise is rapiduntil at the ninth year the security is just over six timesthe debt. From the point of view of the railroad the curve givingthe per cent of equity is of much interest. In six yearsthe margin is 50 per cent and it increases rapidly thereafter. In electric as well as in steam railroad practice there arein general use three methods by which equipment securitiesare issued. In each of the three the railroad is oblig
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