New-York tribune. [volume], January 17, 1921, Page 13, Image 13

About New-York tribune. [volume] (New York [N.Y.]) 1866-1924

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r
MANY long term rail?
road bonds which for?
merly sold on a 4 per cent,
basis have been depressed
by rising interest rates,
coincident with war infla?
tion, to about a 6 per cent
basis.
TO-DAY commodity
price? are falling, and
signs point to falling in?
terest rates. This will be
accompanied by rising
prices for high grade
bonds.
$00*euett ti ?mt,
/ Founded 1797
Seasoned Investments
30 Pin? Street, New York
Por forty years the
Garfield National
Bank has been an in?
creasing factor in the
development and pros
?erity of the Central
lercantile District.
Its modern service is
adapted to increase
that development.
We are Headquarter!
for our clients
23?0 S-ratET.WMWt
FIFTH AVENUE
CROSSES BROADWAY
?a
VALUABLE BOOKS BY
HARTLEY WITHERS
The Well-Known. Authority in
Financial Matters
International Finance.$2.00
Poverty and Waste.$2.50
The Meaning of Money.. . . $2.50
The Business of Finance.. .$2.00
Money-Changing .$2.50
The Case for Capitalism. . . $2.50
Bagehot's Lombard Street.$2.50
L P. Ditton k Co., 681 5ta Av? N. T.
America Must Lead in Trade Recovery^
Says Withers, Viewing Hopeful Signs
Political Outlook Uncomfortable, but Fails to Alarm
Financial Europe, He Says; Sees No Marked Eco?
nomic Effect of the French Government's Downfall
By Hartley Withers
Editor The Economist
Special Calila to Th? Tritntr.i
Copyright, 1921. New York Tribusie Ino.
LONDON, Jan. 16.?Public opinion and
business circles hero aro deeply stirred
t*y the government's announcement of
increased telephone rates, and repre?
sent the higher rates as an especially
irritating form of taxation on business,
which is necessitated only by official
mismanagement and wastefulness. The
fiovernment defense issued by the Post?
master shows that telephone rates have
not increased as much as railroad
charges and the prices of everything
else that the public buys and that the
incVease is necessitated by higher wages.
enhanced cost of materials and the
necessity of making government serv?
ices solvent. This logic appears in?
vincible, and unquestionably telephone
services have been very wastefully used
by business men here.
The whole agitation is interesting
only as evidence of the irritation ar.il
burden imposed on the public by heavy
official expenditures, which thus finds
illogical expression.
The solution of the problem of unem?
ployment is complicated by the refusal
of labor leaders to take part in the
proposed commission of inquiry into
measures to relieve the causes of the
evil. The attitude of labor is difficult
to understand. It originally refused to
cooperate because the terms referred
to the commission were too narrow
The government promptly widened the
terms, but labor still refused to joir.
the commission and insists on holding
an inquiry on its own account which
will report to the National Labor Con
ference on January 27. It looks as i1
the labor leaders are quite unprepared
to suggest any workable scheme ant
want time to devise measures for tht
crisis, which is of urgent importance.
It is regrettable that such tactics or
their part are likely to weaken stil
further their authority with their fol
lowers, who are already divided ant
unruly. Meantime, it seems that th?
government is really taking vigorou
measures to reduce expenditure.
Fresh exhortation for a drastic re
striction of spending has been issue
to all government departments, es
pecially the army and navy. The Labe
Ministry has been advised to ceas
spending on labor exchanges and th
Ministry of Health has been asked t
curtail further outlays. These mes?
ures were evidently necessitated, sine
the public will not stand for furtht
? ?taxation and as the yield on preset
taxes will certainly be cut in the futui
by dwindling trade and lower prices.
Some financial critics suggest tha
the present situation can be met by re?
ducing the rate of the government debt
retirement, but fortunately this does
not seem possible to a considerable ex?
tent, because many loans issued during
and since the war carry the privilege
of being used in payment of death du?
ties and excess profits taxes. Conse?
quently a substantial share of revenue
will be paid to the government in se?
curities necessitating a reduction in
tho debt.
Despite these adverse financial fea?
tures a highly optimistic opinion pre?
vails in money market and Stock Ex?
change circle's, perhaps extravagantly
so. The general expectation is that the
exoess profita duty will be eliminated
from the next budget. It is also be?
lieved that money will be easier and
that the Bank of London discount rate
will be reduced in the near future, per?
haps next month.
These expectations, although proba?
bly too hasty, indicate rapid collection
of the income tax during the current
quarter. It is well to note, however,
that a reduction in the London bank
rate is unlijtely to take place urjless
money becomes decidedly easy in the
American market.
Stock market operators here have
been cheered by the recent advance on
the New York Stock Exchange, the
rapidity of which has been largely due to
short covering and in a lesser degree
to British purchases of cotton. Any
attempt to connect it with the Chal?
mers mission, which has as its purpose
the funding of the British oebt, seems!
absurd, but this may have influenced
a few shortsighted speculators.
Suggestions made in some English
papers that England should cancel her
debt to America by handing over to tha
United States government the obliga
llea are heartily condemned by the best
tions of Great Britain's Continental al
financial opinion here.
There is a slight glimmer of Improve?
ment in the trade outlook, Manchester
reporta a better demand for cotton
goods, but it is believed here that
America should lead the way to re?
covery. Retail trade here cannot reach
a really healthy condition until there
has been a more draitic liquidation of
goods. There have been price reduc?
tions in goods of inferior quality, but
the best grades still hold up to prepos?
terous levels compared with the drop in
wholesale quotations in December.
Foreign trade returns have been dis?
appointing, with a decrease in exports
and an expansion of the adverse trade
balance. Nevertheless the year'? figures
will make a highly satisfactory show?
ing compared with the previous inter?
national outlook.
The political outlook is uncomfort?
able, but the field of finance has be?
come so accustomed to this discomfort
that it almost ignores it. The fall oi
the French government is unlikely tc
have any marked economic effect. Fresh
Bolshevik aggression is feared in the
spring and it is admitted that the pc
sition of Austria is desperate.
The Week's Bond Market
Government and Municipal Bonds
Week's ???j-1921-,
Sales, close. HHrh. Low
2431 U S Ub?rty 3%s. . 92 30 93.50 9!.00
14 do 1st 4a. Sfi.fO ST 7?j 85.24
S4 .1o 2d 4s. 8'*.00 87.20 85.34
C10 do 1st 4'is. ST. 00 8" '.'0 85 40
15 do 1st 4%s. tee. 87.30 ST.30 8?.30
2 do lst-2d 4a... 9S 00 9*50 9S 00
7919 do 2d 4'is. ST.12 87.50 85.30
155 do 2d 4'tS. reg. 86.66 87.20 85.50
5749 d<. 3d 4'is. 90.30 PO.TO 88 00
34 ?1o 3d 4'?s. reg. 90.10 90 50 88.40
11S46 ;!.' 4tli 4'?S.... 87.22 87.90 85.34
27 do 4th 1'is. reg 87.00 87.10 85.46
? 891? V .-' Victory 4%s. . 97 24 97.26 95.86
il d..' ?\* re-r... 98. 80 9'84 95 50
3471 do 7-V . 97.24 97.26 95.i0
!9 Argentine ?"?ov* 5s. 70 TO 67
27 Chinese Oov\ Ry 5a.... 43 46'i 40%
116 City o? Burn? is t reta. 96% 97% 93
1 do Bordeaux fis. 80 80 7 6%
50 do ? 'hrist lania 8s. ... 98 9S 95
35 do Copenhagen 5 Vis.. 7 5 V? 75% 73
7 do Lyons r;^. SO 80 70'.'.
255 do Paris 6s. 96% 96% 94
4 do Tokio 5a. 4? 48 43
37 do Zurich 8s. 97 "-b 98 9,7%
99 Dominican Republic 5a. 77 77 70%
31 Dom Can 5%s notes "21. 9? 99% 97%
32 do 5Vis notes 1929... 97, 93T4j 87%
45 do 5s 1921. 99% 99% 98?*
5 do 5s 1926. 92 92'4 86 Va
23 do 5s 1931. 88% 91 8? ?.?
542 Fr Rep 8s .1 P M rets.. 100 101 *4 99%
91 Gov of Swilz 8s t rets..103% 104% 102
138 Imp Jap 1st 4 Vis. 77', 7S 75%
317 do 2d 4 Vis. 77% 7 7 % 75 Vi
479 do ster loan 4a. 59% 69% 56
ISO K of Belg 7%sJ P M r. 97 99 96
97 do 6s 197'.*,. 92% 93 87
| 1 K of Italy 6%s '25 a A. 82 82 81
2 Rep of Cuba 6s 1904... 77 77% 77
Week's-1921?-,
i Sales. elos". Hlf?h. Low.
! 19 do 44*-. 63% 66% .rii) ;
? 423 UnKof OtBAI Mis 1921. 98% 98 K 97
1738 do ''.?S 1923. 9?% 97 94% I
' 261 do 514s 1929. S3 89% 8?;
,198 do '?da UK. 85% 86% 8.1'4
j 101 U S of Mexico 5a. 41% 42% 40
3 do 4a.30'* 3 1 28
4N v C 44? 1957 Mav.. 93% 93 V? 92%
1 do 4 4-s 19*7 N'ov_ 93 4 03 4 93%
10 flc 4U.i 1963. 93 V? 93 Vi 91%
1 do l',s T9H0. 87% 87% 8? %
| BO do 414s 1964. 884 SS% .?S
5 do Is J 958. 84 '4 84% 84 %
Railway and Other Bonds
2 Adams Kx .-o. ti ?*... 68 60 51" %
2 Ala .'.ri South 6s. 83% 82% 82%
6 Alas 0 M i-vi dub sr A 16 17 ?'?' 15
2 Alt .t- Su.?? 1 ? 41 * 1 "I 7 1
21 Am Agr Cb 1st Ott 5s 92 92 S8
6 do do 5s ... 89% 89 sh S7 '/,
2 Aii!r.- Cotton Oil 5s. . 71 7 1 7u
387 Am rlean ?-melting 5t 78 78 7;*.
5S Ant ron TI 4- Tl ovt fis "6 97 94%
93 do col t-r 5s..SI 82% 77%
2 ? do ovt 4s. 65 63 63
38 d? 001 Id . 7 9 79 7 3 4
2 Amron Wrg Pap .? f 7s r5% 76% 75
5 Ann Arbor 4s.50 50 50
76 Arnir ft'Co 1 est 44? 79 SO 73
10 A T & S P -vt Is I960 63% M > 2
374 do cm Is. 7" 79 75%
3 do ad ?.? . 70% 71 69%
32 do ddj 4.? stn. 72% 72% 69%
1 do 4 4a. t: iV A liv. . S3 83 77 4
26 do Tr Sli Line is... 76 76 73V?
19 All & Ch A I. "<s ?> 1 it ?>?* 9il .'?
? 1 Atlanta A Dam' ist is 70 ,0 64
! 39 Atlantic C Lino 7,.102 in.* 101
2 do unltlotl 4%s. 7 6%' 76% 72'?
! 32 do 1st con 4s. 79% 19% ?6 %
I IM do -Lsv & N (ol tr 4s "2 73 6S %
$12,000,000
Grand Trunk R.ailway of Canada
(Canadian National Railways)
15-Year 6%% Equipment Trust Gold Certificates, Series F
Issued under the Philadelphia Plan
To be dated February 1, 1921 Total Authorized $12,000,000 Due February 1, 1936
itondp-al and cilvidcnd? payable at the office of Fidelity Trust Co.,Philadelphia,Trust?-*e, and at the office of Dillon, Read 6? ?Co., N. Y.
Semi-a-nnual payments of $?100,000 beg-inning August 1, 1921 mu?": be used to purchase
certificate? at or under par, if obtainable. Any unexpended balance must be used to pur?
chase either ?Certificates or Canadian Government obligations due before the maturity
?date ?of the Certificates. Certificates purchased at a premium by the Railway Com?
pany under too foregoing provisions are to be accepted by the Trustee at par.
TTie information given below ia summarized from a letter from Mr. Frank Scott, Vice-President
of the Grand Trunk Railway:
These $12,000,000 Certificates are Issued against new railway equipment costing $16,000,
?562, ?an initial payment of $4,000,562 or 25% of the cash contract cost being made.
Under the provisions of the Statutes of Canada, the rentals payable under the lease of this
equipment rank as a railway working expenditure and constitute a claim against earnings
prior to both principal and interest of mortgage debt.
t
Interim Receipts of Dillon, Reads' Co. or Temporary Certificates exchangeable
for definitive Certificates when received will be deliverable about February 2nd
Price 95.40 to net approximately 7%
Dillon, Read & Co?
Formerly
Wm. A. Read & Co.
The National City Company Guaranty Company of New York
Blair & Co., Inc. Lee, Higginson & Co.
Bankers Trust Company Continental and Commercial
Union Trust Co., Pittsburgh Trust & Savings Bank
*Vtnf?ji?siins ?-H-imrl in t?a? atliisll?iswt h*, to-m ohtmiot? from waunm whteh we eonsider reSsUe.While not g.?trsate?<J,it is accepted br es s? secttrsts.
Order,, have b..n reci-f-sd in .sees? of th. amount of Certificates offered. This advertisement appears as a matter of record.
Weelt'? ,-1921-?
Sales, close. High. Low.
35 Atl Fruit evt 7s ser A. ?8 70 63
165 Ball & Ohio 6s. 92% 93% 90
81 do ret 5a. 71 73 69
203 do cvt 4%s ...?.79 71% 67
152 do gold 4s . 69 71% 67%
31 do prior liens 3%. . 82% 82% 79%
I2B&0 Is, PLE&WVui 65% 6S 62%
1 do 3%s, J & M div.. 76 76 68%
104 do 3%s Swn dlv- ;7% 77% 73%
2! do 4s Toi A Cin dlv. 51 66% 62%
83 Boll Tl V 7s JPM rets.102 102% 100%
6 Beth Steel 1st ext 5s.. 87 87 864
3 do ref 5s. 81% 81% 78%
17 do pr mtg 5a. 77% 81% 75
20 Braden Copper 6s. 84% 83 81
2 Bkn ? Co 5s ser A'49 76 76% 76
14 Brooklyn P.ap Tr 7s.. 45 45 40%
62 do 7s ctfa of dep... 42 42 33
do con 5s*. 25 26% 25
2 Hrookiyn Union Gas 5s 72 77 71
2-'Lush Ter Bids 5s- 73% 73% 67%
8 do con 68. 67% 69% 674
14 California G & B 5s.. 83% 84% 82%
232 Can Nor sr 7s int reta.101 102 99%
6 Canada Sauthern 5s.. 86% 87 84
6 Cent of Ga Rway 6a.. 87% 87% 87
3 da cons 5s. 85 85% 84
4S Central Leath gen 6s. t)0K 91% 88
1461 Central Pacific g 4a. 74% 74% 72%
' do gtd 34?. 77 77 76%
I do Short Line 4a... 71% 71% 68%
a t'ont R R. of N J 6s... 98 4 39 95 4
l"Cheaap & O con Es... 91% 92% 91
.". do rfg 6s. 84 84 79
162 do cvt 6s. 84 85% 83
128 do gen <%s. 76% 77 74%
156 do cvt 4%s. 76% 77 73%
1 do 5s, Craig Val dlv 73 73 73
1 do lBt 4s, R & A dlv 70% 70% 70%
14 Chicago A Alt rfg 3s. . 45% 46 45
37 do 3%s . 38% 39 36"%
10 Chic B A Q gen 4a... 80% 80% 77
13 4s. Ill dlv. 5t 82 79??
1 do 34s. Ill dlv. 7:i-t 76% 73?'
2 do ext 4s, Neb dlv.. 88% 89% 88
1028 do Joint 4s. 97% 97% 95%
I do jt 4s reg. 96% 96% 95 hi
6 Ch A E 111 con 6s.... 94 94 94
13 do gen 5a ctfa of d. 78 7S 78
8 Chgo A Erie 1st 6s_ 80 81 76%
33 Chgo Great West 4a.. 53% 64 50 **
47 C M & St P cv 5a, sr B 71% 72% 69
64 do gen 4%s. 78 79 75"
143 do cvt l%s. 70 71 69
100 do r(g 44s. 64% 64% 60
117 do 4a 1923. 76% 78% 75?
839 do deb 4s, 1931. 63% 63% 60*
23 do gen 4a, ser A... 71% 71% 67
1 do 6?, C A L S dv 97% 97% 97?
72 Chgo A Northwn 7s..102% 104 101?
3 do deb 5s. 1921. 99% 99% 99'
15 do jen 6s. 93 i:'. 91 '
8 do gen 4s. 78% 78% 75
I do *i'n is atp. 76% 76% 76
1 1 do pea 3 4?.68 6? 66
43 Chgo R?-v, Co 5b. 5s 4 64 58
'1 C R I ,C 1" Ry g-ca 4s. 72% 72% 70
??J0 do rt?;' is. 684 684 66?
3 (' St LANG Is, Mem dlv 67% 67% 67
3 C St P M fc O deb is.. 8 4 84 83
3 do S%s. 81% 81% 81
22C l'n St 6%a, ?r C int.106% 103% 102
26 do 4 %s. ser A.;? 80 80% 78
1 Chgo & West ltrd ?S.101 101 101
28 do la. 62 62% 57
16 Chile Copper cvt 7?... 94% 15 93
140 do col tr 6s. It 73 66
i'CCC A St L rfg 6s. #0% 92 89
IS do deb Htm. 81 gi it
33 do gen Is..'.. 71 71 66
1 do is. C W A M dlv 69 ?9 69
1 do col 4b, St L dlv.. 70 70 67
1 Clev Lor A Wheel 5s. 91% 91% 91
6 Col Fuel & Iron gen 69 78% 78% 76
13 Colo & South 1st Is... 80% 80% 73
Course of the Bond Market
This graph shows die weekly fluctuations in the average prices of ten railroad, ten industrial
and five public utility bonds since September 1, 1919
Week's ,-1921-,
Sales. close. High. Low. ,
28 do ref 4%s. 74% 744 72
6 Col Gas A Elec 6s- 83% 83 4 81%
3 do 5s st. 83 S3 83
6 Comp-Tab-Rec Co 6s.. 80 81% 80
3 Con Coal of Md 6s... 73% 7374 72
73 Cons Gas cvt 7s.100 V* 100% 100
113 C Cane Sug cvt deb 7s. 85% 85% 82%
31 Cuba R R 6s. 60 61 69%
10 Del A Hud tern 7s-104 104 102%
11 do cvt 5s. 83 83 80%
79 do ref 4s. 79% 80 77
1 D A. R O Imp 6s. 68% 70 67%
67 do rfg 6s. 46 46% 43
18 do rfg 5s ctfs of dep 44 44 40
6 do 4%a. 68% 68% 66%
118 do con 4s. 65% 66 63>?
8 Des M & F D 4s. 41 42 40
70 Det Hdi rfg 5s, 1940.. 80% 81 77%
21 Det Un Rys 4%s. 69 63% 59
3 FI T Va A Ga. con 5s.. 86% 86 >t 84%
38 Erie prior lien 4s. 65% 65% 64
136 do gen lien 4s.44% 43 42
5-1 du cvt 4s, series A.. 39% 39% 37%
19 do cvt 4s, aerles B.. 39% 39% 38 4
39 do cvt 4s, series D.. 46 4 45% 42%
1 Erle-Penn col tr 4s... 72% 72% 72%
48 Gen Elec deb 6s.100 100% 99%
15, do deb 6s. 89 89 85%
1 Ga Pacifie 1st 6?. 96% 97 96%
120 G T Ry of Can 7s int rc.101 % 103% 101
59 Gt Northern 4%a. 83 82% 80
19 Or Bay A W deb B... 7% 8 7%
1 Havana Electric 5s.. 66 67 66
4 H Val 1st con 4 %s_ 75 75 69
20 Houston B A T 5s_ 76 78 76
218 HAM ref 6s. series A 64 64% 69
446 do adj lnc 5s. 26% 27% 23%
23 Illinois Central 5%s.. 91% 92 89%
12 ICACStL&NOjtSs serA 85 85 78
. Week's r-?1921-, .
i Sales. close. High. Low.
! 143 111 Central rfg 4s. 774 774 75%
3 do 4s 1952. 72 72% 72
41 do 4s 1953. 704 724 68%
69 Illinois Steel ileb 4%s. 78% 78% "A
6 Ind. Ill A Iowa 4s.... 76% 76% 73%
14 Indiana Steelo 5s. 91% 91% 86
13S Interb-Mot 4%s. 17 17 15
' 97 do 44s ctfs of dep. 14 14% 13%
218 Interb Rap T rfg 5s. 61% 51% 48%
1 Int A Gt N 6s ex at 7 po 90 90 88%
195 Int Mer Marine s f 6s. 81 81 T8
1 Iowa Central 1st 5s... 70 70 70
7 do rfg 4s. 4:! 44 40
9 K C Ft S A Mem 6s. . 93 95 93
69 do 4s. 06% 66% 63%
5 4 Kan City Southern 5?. 73% 75 73
7'i do 1st 3?. 65% 65% 54
25 Kan City T'-rm 1st 4s. 72% 73 70%
3 Keokuk A Des M 5s.. 73 73 72
32 Laoka Stetl 5s 1923... 934 93% 92%
45 do ."is I960. 77 7S 73%
38 Lao Gas of St L 1st 5s. 70% 70% 68%
6 Lake Erie A W 1st 5s. M S2 79
15 Lake S AMS dep 4s '28 83% 84 83
63 do deb 4s 1931. 82% 83 80%
4 do Ren 3'js. 71% 71% 68
6 Lehigh Valley 6s_*. 98% 99% 96%
1 L Valley of N Y 4%s. 83 83 83
26 L Val of Pa con 4%s. 80% 83 78%
1 do gen 4s. 76 76 69
6 Liggett A Myers 7s... 105 107 102
? 20 do 5s. 79% 79% 77%
4 Long Island gen 4s... 75 75 74
6 do ref 4s. 68% 694 66%
6 Lorlllard Co 7s.104% 104% 103
19 do 6s. 81% 80 78
4 Louis A Arkan 6s_ 63% 64 63%
17 Louis A JefT Bridge 4s 66% 68 65%
i 27 Loula A Naah 7s_:103 % 103 % 102%
I Week's--?19?1??>
1 Sales. close. High. Low.
i 3 do gold 5s 1937. 91 91 91
23 do unified 48. 83>4 83".? 80"4
1 do 6s, St L, dlv_ 99*>, 99S 99*4
1 do 6s N F & S div. ..90 90 90
6 do 4s A K & C dlv.. 73H 7 3'? 70 ?H
3 do 3s Ht L dlv. 62 63 62
7 Manhat Ry con 4?. 54V? 66*4 64*4
8 do con 4b tax ex.... 57? 66*4 &3
3 Mich Cen deb 4s 1920. 77<'s 77',?, 77%
?2 Mldvalo Steel cvt 6s.. 70U, 78 73
23 Mil L Sh & W 1st Cs.. 91*',, 99?V* 99H
2 Mil & Nor con 4V?s... 84'.? S4>* 84*4
7 Minn & St I, 1st rfg 4s. 44 44 40*4
9 do con 5s. 70 70 C7*t4
6 M St 1" & SS M COU 4s. 8 0?4 85 78Vfc
9 Minn S Ste M & At 4s. 89 89 SS*4
6 M K. & T ext 5 PC notoS 4 0 4 0 40
2 do sf 4'4s ctfs of dep. 33 33 :;::
?179 do 1st 4s. 60*14 ?'O** 68
7>7 lio 2d 4s. 39 ** 33V4 36
10 do rfg 4s. 51 >4 51 'i 61 14
I 20 do 2d 4s ctfs of dep. 40 * 40 40
8 Mo Pac rfg 6s 1923.. S8'a 88*4 Bt*
6 do rg 5s 1926. 86'? 8G*4 Un
8 do 5n 1965 . 80 80 79
346 do gen 4s. 5 5 *4 66*4 53*4
2 Mob & Ohio new 6s... 98'* 98',? 94
1 do 58 St L. div. 78 78 78
8 do 4? St li & C dlv. 74*.? 76 73>4
70 Mont Pow Co 6s ser A. 86** 86 Vi 82
4 Mont Tram col 5s. 69 6? 67**
6 Morris & Co 1st 4<4s.. 76 76 71>?
32 Morris & Essex 3V?s.. 70 70*4 67T?
7 Nitsh C * St L con 6s. 94 94 94
16 National Tub? 6s. 88% 88*4 87*4
11 Now Orleans Term 4s.. 66 66*4 ?1%
9 N O, T i M Cs ser A.. S3 32?4 90
44 do lnc 6s. 60 60 68
(Continued on page ?venteen)
NEW ISSUE
$3,600,000
Mississippi River Power Company
Fifteen-Year 7% Sinking Fund Gold Debentures
Dated November 1, 1920 Due November 1, 1935
NORMAL FEDERAL INCOME TAX UP TO 2 PER CENT. ASSUMED BY THE COMPANY
$1000, $500, $100 denominations
CALLABLE on any interest' date as a whole or in part, upon 30 davs' notice, at 103 and interest prior to November 1, 1925; at
102 ahd interest from November 1, 1925, to May 1. 1930; at 101 and interest from November 1, 1930, to May 1, 1934; and
at 100 and interest' on November 1, 1934, and Mav 1, 1935.
SINKING FUND: B% annually from 1921 to 1926 inclusive, of debentures certified and 4% annually from 1927 to 1934 inclu?
sive, payable September first, to be applied to the purchase of debentures at not exceeding the call price, or to call by lot if
not so purchasable, debentures thus acquired to be cancelled.
THE STABILITY OF EARNING POWER AND RELIABILITY OF GOOD WATER POWER DEVELOP?
MENTS HAVE BE EX PROVED DURING THE PAST YEARS OF ABNORMALLY HIGH OPERATING COSTS.
THE WATER POWER DEVELOPMENT OF THE MISSISSIPPI RIVER POWER COMPANY, SPANNING
THE MISSISSIPPI RIVER AT KEOKUK, IOW?V, COMPLETED IN 1913, IS ONE OF THE LARGEST AND
MOST EFFICIENT IN THE WORLD.
The present installed generating capacity is approximately 150,000 horse power, with founda?
tions constructed for an additional 50.000 horse power. 468 miles of transmission line are operated.
The territory served, one of the natural transportation centres of the United States, includes St.
Louis, Alton, Quincy, Burlington, Fort Madison, Keokuk, Hannibal and adjacent sections.
Present contracts cover an aggregate demand of more than 130,000 horse power, of which 80r,
is with public utility companies, thus insuring wide diversity of business, and the most important is
with the public utility companies of St. Louis for 60,000 horse power for a term of ninety-nine years
from August 1, 1913.
No other important water power is available within practical transmission distance.
EARNINGS AND EXPENSES
Gros;- and net earnings of the Company have increased steadily for the past seven years as follows:
Yi-ar Gross Earnings
1914.$1.576,469.12
1915. 1,651,269.34
1916. 1,737,547.48
Net Earning?
$1,254,521.69
1,326,868.15
1,376,151.79
Year Gross Earnings
19?7.$1,976,461.21
1918. ..... 2,213,391,77
1919. 2,321,954.21
1920. 2,827,963.85
Net Earnings
$1,612,065.76
1,766,406.36
1,799,324.50
2,189,340.90
Earnings and expenses for the twelve months ending December 31, 1920, were as follows:
Gross Earnings.$2,827,963.85
Operating Expenses and Taxes.. 638,622.95
Net Earnings.$2,189,340.90
Interest on $19,075,400 outstanding first mort?
gage bonds.$953,770
Interest on $3,600,000 debentures now offered. . 252,000 1,205,770.00
$983,570.90
NET EARNINGS ARE OVER 1 H TIMES ALL INTEREST CHARGES. AND AFTER DEDUCTING BOND INTEREST
ABOUT 5 TIMES INTEREST CHARGES ON THIS ISSUE OF DEBENTURES.
Purpose of Issue: The proceeds of these debentures will retire all indebtedness other than the
$19.075.400 outstanding first mor? gago bonds. During the past three years the company out of cur?
rent earnings has reduced ils indebtedness by over $1,400,000 and added to plant about $500,000.
Security: These debentures are the direct obligation of the company, subject only to the out?
standing tirst mortgage bonds, and no further lien or incumbrance can be placed on the property
without equally securing these debentures. The replacement value of the company's property at
present prices is conservatively estimated at twice the total debt.
SINK* f? O rtlNOi ttTK OEBK.VTTKf; i"l NRl V<i ITVI> 'HOI I.P RKTIRK OTKB FirrV TKB TEXT. ?*? THE ISSCR BRFORE
MATt'KlT? Ot'lUNO TUB SAME PERIOD Ulf. flBST >IOKI'?'Arf'E IWM) SIM<l\<; Kl SI? Will. AMOIM TO OVKK $?> ?0Q .000,
AND WILX BK tSED TO RETIKI* BONDS. TIlK?l? KE*Jl I KEM EATS AUK BEING EAttNEU BY A SUBSTANTIAL MARGIN.
The Company is under Stone & Webster management
IV$ offer then debentures, nibjert to previous <ii!t.
Price 91f? and interest, to Yield 8ch
This issui of debentures has been approved by the Public Utilities Commission of Illinois, and all legal matters pertaining to t'tZis issue haut been
approved by Messrs. Gaston, Snow, Saltonstall & Hunt and Messrs. Herriik, Smith, Donald i? Farley, Boston.
KIDDER, PEABODY & CO.
Boston New York
STONE & WEBSTER, Inc.
New York Boston Chicago
ESTABROOK & CO.
Boston New York
PARKINSON & BURR
Boston New York
All information cutitatnod herein has been obtained from ?ovjrcen which -wn
consider reliable. While not guaranteed. It la believed or u? to tx? accurate