Evening star. [volume], October 23, 1927, Page 13, Image 97

About Evening star. [volume] (Washington, D.C.) 1854-1972

Image provided by: Library of Congress, Washington, DC

                
TRADING TRANQUIL
IN BOND MARKET
Prices Shade Lower Than
Week Ago, Due to Heavy
New Offering List.
BY GEORGE T. HUGHES,
Special Dispatch to The Star.
NEW YORK, October 22.—While
the stock market has been performing
spectacularly, the bond market of the
week has Ijoen moving tranquilly
along. Prices are a shade lower than
they were a week, ago, but that is
because of the ‘.jbmpetition of new
issues and not from the effects of
overbuying, as in stocks.
New bond offerings this week totaled
over $267,000*000, making it the sec
ond largest, week of 1027 in this re
spect. The record week was that
ending February 4.. when there were
more than $297,000,000 of new issues.
A wer,K ago the output was almost
so that the aggregate
of the last two weeks is more than
$484,000,000.
These are large sums, even in these
days, and it was not surprising that
the advance in seasoned ftssues slowed
xip. The effect is not likely to wear
off in a week or two, either. It will
take a longer time to place perma
nently this great amount of new
bonds. Some authorities have been
predicting a period of congestion in
the investment market similar to that
expei ienced last June. This view
however, is not universally held For
•me thing, there is still u supernbun
dance of money seeking employment j
arid there are as yet no indications !
That the supply of investment media
has outrun the demand.
Interesting New Offerings.
The week's new offerings have had
ponie unusually interesting features.
In the first place, low coupons have
been the rule on all domestic bonds.
Two utilities have financed their rc
«Hiirement with securities yielding the
investor from 4% to about 4% per
cent. The Edison Electric Illuminat
ing Co. of Boston sold $40,000,000
notes, $30,000,000 running three years
with 4*4 per cent coupons and $lO,- j
000,000 of them running one year with
a 4 per cent rate.
The newly organized New York
Power & Light Corporation marketed
& 30-year mortgage bond with a 4%
per cent coupon at a price to yield less
than 4.75 per cent. Only a year or
two ago. financing even by the most
successful of public utilities would
have been impossible on any basis so
favorable to the borrower.
Along the same line next week the
Federal land banks are scheduled to
offer $30,000,000 of bonds with a 4
per cent coupon, the lowest rate since
the establishment of the system.
Finally, conditions of a quarter century
ago were recalled when the Morris
* Essex Railroad sold nearly $10,000,-
<*oo of its first refunding 3% per cent
mortgage bonds. The return to the
buyer of this issue was only 4.15 per
cent Strictly speaking, however, this
is not new financing, but only the of
fering of an additional issue of treas
ury bonds originally brought out in
19<*0 Needless to say, investors do
riot look kindly on the reduction of
their income that such purchases
represent, but it is the trend of the
times and will have to be accepted.
Biggest Power Issue.
The New York Power & Electric
cfferlng is interesting also as being
th? largest electric light and power
ottering ever made, topping by a
small m rgin, the Associated Gas ft
Electric issue of April, 1926. .The lat<
ter by the way, carried a 5 % per
cent coupon, showing the progress
that has been made since that time
toward lower interest rates. There
have been larger utility offerings in
the past, but they have been in the
telephone file, where the American
Telephone ft Telegraph reigns su
preme.
Another feature of the New York
Power and Light bond is worthy of
comment. That organization is a
holding company, but provision has
been made for retiring all the under
lying bonds or practically all by
January 1, 1929. ( This development
in holding company financing is com
paratively recent, but Is of real ad
vantage to the investor. If the obli
gation of a holding company is with
out prior liens it is, of course, as
good as that of the operating com
panies and has the additional attrac
tion of a much belte- market. That
is now the trend in railroad financing
also.
Rif k in Foreign Bonds.
Turning to the foreign field the
contrast is striking. The most im
portant offering of the week here was
the Republic of Poland stabilization
loan. It consisted of $47.000.000 20
years 7s at a price to yield the buyer
7.86 per cent. This is high enough
to satisfy the most diligent seeker
after a high return. The trouble is
that there is an indefinite risk in all
these foreign .bonds; otherwise the
rate wouhl not be so high.
It is a curious commentary on the
claim so often made that the strength
in the stock market was primarily due
to investment demand, that stocks
should have had so violent a break
the very week that all this large vol
ume of bonds was being marketed. It
goes to show not that investment
demand had no part in putting up
prices for stocks, but that specula
tors had been trying to ride along
on the crest and that they.were un
prepared for the sudden recession.
IJoubtless when the technical con
dition of the stock market has been
restored, investors will again be found
buying the better grade of stocks.
Before that time, however, further
readjustment is pro Viable. Neither in
vestors nor speculators are accus
tomed hastily to enter a market which
has shown itself as sensitive to
liquidation as stocks have this week
WILL BE OFFEBED STOCK.
NEW YORK, October 22 (A 3 ).
Stockholders of record Octolrer 31. of
the Atlantic Coast Line Company, a
holding company, its principal asset
being 27.03 per cent of Atlantic Coast
Line Railroad stock, will be offered
58.800 shares at par value, SSO, through
approval of the issue by the Interstate
Commerce Commission, on the basis
of one share of new stock for each
three shares now held. Proceeds from
the additional stock will be applied
chiefly against the purchase of $3,718,-
200 of the railroad company’s stock
under the latter’s recent offer, giving
stockholders the right to subscribe to
additional railroad stock at $lO4 a
share to the extent of 20 per cent of
their holdings.
New York Stock and
Bond Averages.
SATURDAY. OCTOBER VI.
STOCKS.
Total stock sale*. I .<26,100 .harm.
Twenty indOktriaL averaged 107. OS:
net loKfc. 1.25.
High. 1027. 170.06: lew. 141.23.
Twenty railroad* averaged 141.51:
net ion*. .61.
High. 1027. 152.95: low. 125.58.
BONDS.
Total bond «ale« <i»ar value). *4.-
625.000.
tni first grade .rails averaged 07.07:
pL| aerundary rails averaged 00.07:
**jrtnVil'ie*ul!tltlcn averaged 97.33:
*Tsn tixlultrlala averaged 101.82: net
Combined overage. 08.821 net loss.
average, month age.
NJB: rear age. 95.24.
FIN ANCIATJ.X
FOR THE WEEK
Hurh^ rt Low High' 7 bow O 9 BONDS. High bow- bast Yield
101 25 99 19 101 25 100 23 Liberty 3%s 1083-47 101 16 101 14 101 15
1 1032 101 21 103 30 102 28 Liberty Ist 4%a 1988-47.. 103 12 103 6 103 12
1015 100 13 101 4 100 Liberty 2d 4%s 1927-42.. 100 3 100 100 1
101 17 100 25 101 31 10) 23 Liberty ?<1 4V* S 1928 100 27 100 24 100 25
103 18 101 29 104 12 108 13 Liberty 4th 4%a 1988 88. 103 31 103 27 10- 28
11010 106 9 114 31 UJ 5 Treasury 4*4s 1947-62... 111 4 113 30 111 b
Hich bow High "bow FORKIUN Close High bow b*«
100 96 103% 97% Argentine June 5s 1969. 99* 6
100 k 96’*. 101 97 » Argentina «s A-1957 100 100% 100'* 100 4
103 100 106 101% Austria Is 1948 ♦ 105% 106 105 105%
92W. 81% 100 92% BeiKtum 6s 1 * * **
111% 105 114* 111 Belgium 7%a ]l4* J4* *
108% 105% 110% 107% Belgium 8s 110% 110% 110 110
93% 81% 10084 93* Bordeaux 6s 99* 99b 99 4 .J%
90 88 96 89 Brazil 6%s 1957 92% 92* 92 4 9~%
105 100% 108% 104 Brazil 8s }oh% JO®* 106 4 106 1
105% 102% 106% 101 Canada 5s I<">% ®' 4 J*)® , *
102% 101% 102% 101% Canada 5%s
109% 107 110 106% Chile 8s 10 ? l ®:? 4
48% 23% 30* 24 Chinese Govt Ky 5s 1951 4 O* *
i 100% 98% 10t% 99% Copenhagen 5%s 1944 10t>% 100* 100* 100 *
105% 99% 110 105% Czechoslovakia 8s 1951 I°9 109 J®,
104% 102 105% 103% Denmark Ks 1942 I® 4 * 1<); ’ J”? * *
106% 103 105% 102% Dutch Cast Indies «s 1947 105 10>* UD 10<»
106% 103% 105% 102% Dutch East Indies tbs 1962. t 05% 1 [J 4
100 86% 107% 99% French Government 7s 1949 106* 106 4 lOa * 106
105% 92% 115% 105 French Govt 7%s 1941 l >4% 114 1.4
108* 98% 112% 108% French (Jovt 8s 1945 HO* 110 s 10 * lW i
107% 101% 10.4% 105% German 7s K;®' 4 'J* % J'lV*
93% 78% 104 91% Hnlland-American sf 6s 1947.... 104 10 .H 10.. »*0 %
194% 88% 99% 92% Italy 7s ! « v * •J's
00% 92% 102 98% Japanese 6%s 1954 101% 101% 101% Hi A
116 100 111 101% Jergens Utd .Margarine 6s 1947... 103% 104 103% 104
109% 106% 103% 105% Netherlands 6s 1972 106% 106 i JOtro 106 *
99% 95 102% 98% .Norway 6 101% 101* 100% 101
87% 73% 97 87% Paris-Lyon Med 6s 1958......... 96% 96% •«*%
94% 82% 101% 93% Poland 8s 98% 101% 98% 91
106 104 108 104 Queensland 6s 1947 106% lo6m 106% 1064
114% 110 116 111 Queensland 7s 115* 116 1 US *
119% 95% 126% 110 Rhlnelhe 7s H’% "t:
104 97% 106% 102% Bio-1e Janeiro 8s 1946 105% 10.>% 105 IIM
106 V. 102% 107 104'.> Sao Paulo State of.’Ss 1934 106% 107 10a 106 «
98% 84 105 97% Seine Dept of 7s 103% 103% 103 103%
98% 87 102% 97% Serbs, Croats Slovenes 8s 1962... 100 < 101 100 100 *
106% 103 105 103% Sweden «s I<s 104% 104% 104%
106 102% 106% 102% Swiss 5%s 1916 .. 103% 104'* 103% 104%
99 • O'* 99. 94% Toho Elec Pwr 7s 1955 9J 98* 4-7% 98%
119 117% 110% 116% United Kingdom 5%s 1929....... 117% 118 117% 11.%
106% 103% 106% 103% United Kingdom 5%s 1927 105% 106% 105% 106 .
INDUSTRIAL AND MISCELLANEOUS
MOS 103% 105 97% Amer Agrl Chemical 744 s 1941... 104% 104% 104 104
101% 99 103% 100% diner Smelt ft Ref Ist 5» 1947.... 102% 102% 102 102
109 107 109 a 107% Amer Smelt Ist 6s 1947.' 109 109% 108% 108%
1050* 10° 105% 104% Amer Sugar Refining 6s 1937 104% 105 104% 105
98% 96% 100 98% Amer Tel A Tel cl tr 4s 1929 100 100 99% 99%
102% 97% 106 101 American Tel * Tel *f 5* 105% 105% 105% 106%
104% 101% 105 103% Anaconda Copper 6s 1953 104% 104% 101% 104”.
109% 102% 109% 106% Anaconda Copper cv deb 7s 1938.. 109 109% 108 1 108%
92% 90% 93% 88% Armour &Col %s 1939 90% 91 90% 91
103% 1012% 93 87% Armour of Del 5%s 43 8 % 90 84% 90
10214 99% 102% 100% Atlantic Retiring deb 5s 1937 .... 101% 102% 101% 101%
101 96 106% 96% Barns.lall Corporation 6s t 340... 5.7% 97% 97% 97%
104% 100% 106 102%. Bell Tel 'P« > ref 6s 1948 105'i. 106 105% 105%
99% 93 101% 98% Bethlehem Steel pm 5s 1986 101% 101% 10 : *% 101
102 95% 105'% 101% Bethlehem Steel as de 1948 104 104% 104 104%
j fig 78 v 2 86% 76 Cons Coal .nidi Ist ref 5s 1950.,. 83% 83% 83 8,3^
100 92% 102 95% Cuba Cane Sug cv deb 8s 1930.... 96% 96% 95* 95%
108% 107% 109% 107% Detroit Edison ref 6s 19441 I<>B% 108% 1t.7% 107*
97% 92% 06 82% Dodge 6s 1940. 85% 85% 82% 85%
104% 101% 108 102* Eastern Cuban Sag 7%s 1937,... 105 105 102% 103
107 104 108 104% Goodrich <H FI 64*s 1947 ........ 108 108 107% 107 H
12? 119% 122% 119% Goodyear Tire 8» 1941 119% 119% 1 19% 119%
loi% 101% 103 101% Humble Oil % Ref 5%s 1932 102% 102* M*2% 102%
105% 102% 105% 103% Indiana Steel 5s 1952 104% 105 104* 105
88 84% 103% 95% Inter .Met Marine «s 1941 103 103 10.% 102%
98 ;1% 102% 87 Inter Paper 5s A 1947 .. .... 101% 101% 101 101
108 102% 109% 99% Kelly-Springneld Ha 1931 108% 108% 108 108%
100 86% 103% 99% Lackawanna Steel 5s 1950 101% 101% 101% 101%
105 102% 108 103% Laclede 5%s 105% 105% 105 105
103% 99% 106% 102 Liggett & Mvers 5s 1951 105% 10579 104% 105%
105% 93% 109* 102% Manat 1 Sugar s f 7%s 1944..'..... 105% 10 c % 105% 105%
98 92% 109% 97% Midvale Steel 5s 1936 99% 100% 99% 100
103% 100% 106 a 103 New England Tel 5a 1952 106% 106% M6%1: 6%
118 114% 117 114% N V Edison lstt*%s 1941 116% 117 116% 117
106% 104 109% 103 N V Gas El,H* Rss 1948 109% M 19% 109 109
89% 87 101% 98% N Y Tel 4%s 1939 100% 101 1»!0% 100%
110% 107% 110 107% NY Tel «• 1941 H 9% :‘»9% 108% It 8%
100% 97% 102% 100 Northern States Power :7s 102 102 101% 102
100% £7% 103% 99 * Pacific Gaa A Klee is 1942 101 10! 102% 102%
102% 88% 105% 101% Pacific Tel St let 5s 1953 105% H’s% H'6% 105%
112% 103% 106% l‘i2 Pan-American 6s 34 102% 102% 102% 102%
105% 103% 104% 10S% Philadelphia Co ref 6s 1944 104% 104% 104% 104%
104% 100 107% 103% Public Service 6s 1944. 107% 107% 106* 107
89% 93% 102% 97% Sinclair Oil 7s 1937 99% 99% 99 99%
101% 100% 101 99% Sinclair I'rude Oil 6g.. 100 v» 100% 100 100%
102 101% 103% 10L% Standard Oil NJ 5s 103 J 02% 102% 102*
107% 103% 103% 106% United Drug 6s 15)45 11.6% 107% 107 107
95% 91% 96* 88 U S Rubber Ist * ref 5s 1947 53% 84% 93% S3*
108»« 105% 106% 103 U S Rubber 7%s 1936 101 lt'4% It 3% 103%
108% 105% 109% 106% U S Steel sf as 19621( 8 * 109% KB% 108%
89 * 85 101 97* Utah Power .V Light 5s 1944 ...... 101% 101 101% 100%
90 56 V 9 77 Warner Shgar 7s 1939 8 % 89 88 88
113% 110% 113* 111'* Western Union Tel 6%s 1936 112% '12% ti 2% 112*
102% 85% 102 * 97% Wilson Co Isi Hs 1941 101% 102 101% 101%
K A I I.K'iA 1»
93% 89% 98 92% Atchison f*S Fe gen 4a 1995 .. 97% ! 7T4 !7% 97%
95 92 94 93% Atlantic Coast Line is! 4a 1952... 97 1 '9 97* 89
94% 89 * 97% 93% KaDo * O Ist gold 4* l»4». 96% 97 :6* 86%
97% 94 it* ,*. 97 Balto * Ohio cv 4%s 1933 I*o% 101% 93* 99%
100% 93% 105% 100% Balto* Ohio ref 5s 1996 104% t 04% 104% 104%
103% 102* 103% 102% Balto A Ohio tfs 1929 102% H 2% 102* 102%
93% 89% 96%. 92% BSt O PltU LE« WVa 4s 1941.. 96% 86% 86% 86%
102% 98 105% 101% BA O Southwestern Div 5* cfs 60 105% 105%. 105% 105%
99% 92% 101% 95 * Brooklyn Mannat sf6s A 196*... 95% 96% 95% 96
118% 116% 120% 117% Canadian Northern 6%s 1946.... 11 % 120% 1H 119’*
86% 80% 88% 83% Canadian Pacific deb 4s 87% 88 87% 88
92% 88% 94% 91% Central Pacific 4s 1949 93% 84% 93't 94%
99% 97% *oi% 99% Chesapeake & Ohio ov 4%s 1930.. 100% 100% 100% 100%
97% 92 102% 97% Chesapeake & Ohio een 4 Vis 1992. 101% 102 101% 102
62 51% 6* 61% Chicago & Alton 3%s 1950 63% 63% 62% 62%
107% 102% 103 10 »% Chi Bft Quincy let rer as 1971... 108 108 108 108
81% 73%. 94 80% Chi & Eastern 111 Ken 5s 1951 93% 93% 92% 93%
70% 64% 74% 69% ChlGreat Western 4s 1959 73% ',3* 73 73*
56% 47 67% 55% Chi Mil & StPaul deb 4s cts 67 6S 65% 65'%
4,6% 80% 99% 94 « C*»l Mft St Paul get) 4%» 1»M.... 4.9 4.9% 9%
68% 48% 69% 67% Chi 61 ASt Paul ret 4 Vi» 291 ♦.... be* t>B<* 68 th %
57% 47% 67% 55% Cbt &i ft S* Paul ev 5s 2»|< 67 66% 65 65
114% 111% 113% 111% Chi ft Northwestern 4%s 1936.... 112% 112* 112% 112%
81 65* 1*5% T4* Chicago Railways os 192? 82* 8.1% 82 82
92% 87% 95% 92% Chi K1 ft Pacific ret 4s 1934 t’s% ■5% *5 95
98% 94% 101% 97% Chi Union Station 4 Vis I9«* 100 * 101% 100% 101%
119% 115% 118% 116% Chi Union Station «%s 1943 118% llß* tlB% 118%
187% 81 92 86% Chi ft Western lnd con 4s 1358... 9a% 92 i. 0% 92
103% 101% 103% 102% CCCft St L ret «s A 1329 102* Ht 3 102% 1P2%
97% 85% ' 99% 96% Colorado ft Southern 4%s 1935... 9.!% :9% 99% 93%
96% 88=% 98% 94 Cuba RR 5s 1952 »hs >8 97% 97%
105% 102% 106 103 Delaware# Hudson 5%s 1937.... 105 105% 104% H>s%
92 85% 94 90% Den & ltio Grande con 4s 1936.... 92% S 3 92% ‘.2%
76% 62 89% 73% Den ft K U West 5s 1955 85% 85% 84% 85
82% 74% 88% 81% Erie Ist con 4s 1396 f 8 88% 88 88%
74% 64 81% 73% Erie gen lien 4s 1396 81% >2% 81% 82%
79% 67% 84 78% Erie cv 4s A 1953 87i/., .8 ft , H, b.%
100% 97% 100% 53% Fla EC 6s 74. 84% 94% 13% 93%
108 106% 108% 106* Grand Trunk s f deb «s 1936 10s% !< 9 ÜB% 18 *
.16% 114% 116 114% Grand Trunk 7a mi) 114% 115% 115 115
9MK 93 101% 94% Great Northern ♦%a 1376 99% 9J% 99% V 9%
109% 102% 112* 108 Great Northern gen 5%s 1952 112 112% 111% <ll%
115% 110* 11->% 113* Great Northern gen is 1336 115 110 114% 114%
58% 92% 102% 99 Hudson ft Manhattan ret 6s l!)57 . 101% 102% 101% 102
84% 75% 93* 84 Hudaon ft Manhattan adj 5s 1957. 92* 'JI r£\ 93
80* 62 79% 75% Inter Rapid Transit 5a 1966 79% .9* »9 .9%
100 85* 99% 9j% Inter Rapid Transit cv 7» 1932... 99 99% .9% :9*
86 66 98% 83% Inter ft Great Not adj 6s 1952.... 97% 58% 97*
93 89% 95 * 92 Kan CFt Scott ft M4s 1936 55% 95% 15% 95%
76 72% 77% 73% Kansas City Southern 3s J 950.... 77 7 ( % ",6% *. %
59% 93% 102V* 99% Kansas City Southern 5s 1^50.... 102 102 101% 102
03% 68% 100 98% Luke Shore 4» 1926 39% 100 * 93*
98 86% 99* 97% Lake Shore 4.s 1931 9 % .9% *9% >9%
36V* 95* 99* 92* Louis ft Nash unified 4s 1940 97* ’B% 9.% !8
HOi* 105% 110 106V* Louts ft Nash Ist ret 5%s 21103... MB* 11.) 11 9 109%
98'* 89* 102% 98 Mil Elec Kv ft Lt Ist ret 5s 61.... 10J tU2% 101% 10JV«
104 101% 102* 97% MSiPft SS M H%s 1931 102% 102* 102 102%
88 84% 91% 86% Mo Kan ft Tex Ist 49 1390 91% 91% 91% 91*
97 50% 108% 96% Mo Kan ft lex adi 5a 1967 107% 107*. 103% 1u6%
103% 96V* 105% 101 Mo Kan ft Tex pr In as a 1962.... 104 . R,4% ( J4* 104*
77 65 ; * 79% 74* Missouri Pacific gen «s 1975 78* 79 v«% 79
97* 94% 98* 96% New York Cent deb *a 1 334 5,8 :8* t BV« :8%
106 101% 110 103% New York Cent ret imp6s 2013... 10 t 119% 108% 10.)%
70% 58 79 69% New Haven deb 4s 1957 78 79 78 '.B
106 97% 'll4a 105% NYNHft Hcv deb tis 1948 113% 1)4 112% 113
36% 22 30% 16% NYRy 6s 1965 .• 17% 17% 16% 1,%
80 69 89% 78% N Y West ft Boston 4%s 1946 89 b 9% bß* 59
03% 90% 97% 92% Norfolk ft Western con 49 1996... 97 i7% 87% 17%
66% 61* 70* 65* Northern Pacific 3s 2047 69% 7 ;«* 70% 70*
31% 86* 97 91% Northern Pacific 48 19*7 35% ■’j .g
103* 98% 108% 103% Northern Pacific 5s 1)2047 108% 108% 107% 108%
114% 108% 116V* ill Northern Pacific ter Imp tis 2047.. IXS * »15% u 5% 4 js' n
38% 36% 100 98% Ore Short Line ret 4s 1929 9 % 99% 19% 99%
88 83* 91% 86% Ore Wash Ist ref 4s 1961 91% 91* 91% tl%
100 94% 1.04% 99% Pennsylvania gen 4%s 1965 103% 104V* 103% 104%
108% 102% 112% 106% Pennsylvania gen 5s 1968. Hl% i\M /t 1)2 %
113% 111% Hi* Pennsylvania 6%s 193e 112% 413 jjg'* 112 .
42% 36% 53 41% Peoria ft Eastern inc 4s 1 990 49 47:4,
104% 101% 105% 103* Pete Marquette Ist 6s 1956 104% 104* 104* 104*
103 99 103 100% Port RYL& P6s 1947 100% 103 .102 102
99 94% 102% 98 Reading 4%s 1937 10D* 102 io'% 101%
85 74% 89 84 Rio Grande Western clt 4s 1949.. 87% fcS 87*/* t:7%
95% 89 98 94* R I Ark ft L 4 %s 1934 67% 07*
94 89% '96 92% St LiMftSR ft (7 4s 1933 9/V* 96 i. 5% 95*4
85 77% 90% 84% St Lft San Fran pr in 4s A 1 950.. 89 90% 89 go
100% 93 I° 3l/ ) St Lft San Fran pr in 5s 1»50.... 102% H)3% 102% 103%
103% 99% 103% 101* St Lft San Fran 5%»D13 42 103 103% 102% 103%
99% 92% ,102 99 St Lft San Fran adi 6s 1 355 10t% 101% 100% 101
36% 84% 99* 95% St Lft San Fran Inc 6s 1 360 9 * 90% 33% <9%
33% 86 96% 92% St PK C S Line 4%s 1341 95% 96% 95% ‘6%
76 69% 76* 19 ) Seaboard Air Line ief 1359 73 73% 72* 73%
87% 76 88% 83% Seaboard Air bine ad tss 1949.... 85 86V* r 4% 45
yg 31 99% 94 * Seaboard Air Line con 6s 1345.... 97% 98 5,7% 97%
■9B* 96% 100% 98 Southern Pacific cv 4s 1323 39% 99% 93% 99%
90% 86% 94 88 Southern I’acirte col Is 1349 93* ’.,3% 93% t. 3%
94 90 98 93% Southern Pacific ref 4s 1»55...... 97 93 37% 97%
87% 81% 91% 86 Southern Ity gen 4s 1956 90% 9’% 9J-* £o*
108 104 111* 101% South Uy lat 5a 1394 llu% 111 Uo% 111
119% U 2 126 119’'* Southern Ry dev «%s 1356 125% L 6 125 125%'
65% 41% 66 •'6'» I’hlrd Ave ad) 5a 1960 61 61% t,O 60
95% 92% 99 4 94% Union Pacific Ist 4s 1947.... 97* 18% P7* *. 8%
103* 9®% 109 102% Virginian Ry tat 5» 1962 108% 109 tOB% 108*
104 101% 10$ 103 Wabash'let 6a 1939 104% 1U4% 104* 104%
105 98% 107% 10314 Wgbash 5%a 1974 106% 106* 106% 106%
77* 66* 87 78U Western Maryland 4a 1988.. 86% 86% £6 85%
100% 95% 100% 8814 Western Pacific »a 1944 100 100 99* 89%
87% 83% 9141 86% Waal Shore lat 4a 2594..... 91% 91% 91% 91%
TRE SUNDAY STAR, WASHINGTON*, P. C„ OCTOBER 23. 1927-PAST 6
TRACTION MERGER IS DIRE NEED,
BUT WORKING PLAN IS ABSENT
Proposition Has Many Ends to Be Tied
Up and Many Approvals Have
to Be Secured.
BY I. A. FLEMING.
Washington should have a unified
system ot street railways with un
limited transfers and fares if pos
sible, lower than the rates now cur
rent. This is the almost unanimous
view of the various citizens’ organiza
tions and of the rank and file of the
people of the city.
And so it is that the presentation
of a plan for the accomplishment, of
this end, presented to the chairman
of the Utilities Commission, has at
tracted much attention, and practical
ly every one is anxious for the fullest
details, even though it has now been
withdrawn, on admission that Mr.
Childress did not like it.
Whatever Mr. Wilson’s plan, it
seemed premature. In the first place
it is not officially approved, so—£wr as
known, by the North American Co.,
tiie admitted owner of a large part of
the stock of the Washington Rail
way & Electric Co. The Capital
Traction Co. officials have not given
it even the once over, and the Wash
ington Street Railway Co. must needs
give official approval—hence the plan
is of small importance until it shall
win the consent and approval of the
varied interests involved in the pro
posed merger.
Not an Easy Problem.
If. Is by no means an easy task to
bring about the desired consolidation,
and any one who anticipates lower
fares is doomed to disappointment
with a certainty that cannot be doubt
ed by those who recall that the right
of public utilities to a fair return on
their physical vaulation is a funda
mental fact.
Both the traction companies would
have been before the Utilities Com
mission before this with demands for
higher fares but for the dread in
which they hold the $25 automobile,
understanding that higher charges
would greatly Increase the number of
cheap autos carrying workmen to and
from their work.
Not Earning Dividend. -
The Capital Traction Co. has but
one kind of stock, has been for
some time paying 7 p?r cent annually
and has not been earning that, so
that the deficit in the dividend re
quirement has been dipped from out
the surplus, and this is not considered
a good business policy. The officials
of this company, which has been
given a much larger physical valua
tion than that received from the
old utilities commission, know full well
that a request for higher fares would
be immediately granted—else such a
demand could be enforced in the
courts with the assurance that in the
court of last resort, the Capital Tt ac
tion Co., would win.
Shorn of the Potomac Electric Co.,
the Washington Railway and Electric
Co., would be in a much loss satisfac
tory position than the sister corpora
tion Is today as it litis so many poor
paying “feeders."
There is no danger of this separa
tion, however, as the company owns
and probably always will own Pepeo,
n r does it scorn at all probable that
the North American Co., even if it
so desires, will ever find away to
separate them.
Dors Not Hold Control.
There seems to be an opinion in
lay circles that the North American
Co., is in full control, through majority
stock holdings, of the Washington
Railway and Electric Co., but this is
not a fact. It is a large, even the
largest owner of the common stock
and also owns a large part of the
preferred shares. It is also said to
control the directory.
Os the common stock there are
65,000 shares outstanding and also
85,000 shares of the preferred out
standing. The latter is entitled to 5
per cent dividend. Common also re
ceived 5 per cent up to a relatively
short time ago when it was increased
to 7 per cent. Both stocks have equal
rights in the matter of voting.
Since the first entrance of the North
American Co. into the local railway
situation with the purchase of 27,500
shares of Railway common, it has
been increasing its holdings. It is
also said to have acquired considerable
stock itv the Capital Traction Co., but
it is impossible to obtain information
as to the amount, shares being car
ried on the books of the company in
various names.
Inflating Prices.
With the advent of North American
interests in the local situation, a
slow, but almost continuous advanc
ing movement in price of the common
shares has been maintained, until to
day they are quoted not far from $406
a share, or a total valuation of $26.-
000,000 and has caused more than one
to ask. how, why and what on?
In the interim Railway preferred
with exactly the same voting power
and therefore desired in any effort to
control the system, has been slow ar.d
only within the last month lias beeti
moving up with a little more show of
life. For a long time it held around
and below the ‘9os and has just risen
near the par mark, SIOO a share, since
the announcement of Mr. Wilson’s
plan having been presented to Utilities
Commissioner Childress.
Capital Traction shares after hang
ing fire for years around and not
far from par, moved up since the pies
entation of the Wilson plan to the
chairman of the Public Utilities Com
mission, the gain amounting to 6 to
8 points.
It is not generally known that a
merger plan was developed with the
HOW IS BUSINESS?
Showing Current Business Activity Compared With Same Week Last Year
““ MOV| etc* JAN FEB MAP APT. MAy|juNß JULY AUG SETT OCT NOVEMBEg
►ls* —1326 1927
_ yeaiaco
OiSNERM, BI'StXKSS ACTIVITY foi flip rnuntry indicated by bank debit* ont*lde
New York City. Shafted areas hliow week* of activity uhove toe corresponding
week* of tlie previous year. Black area** Indicate decline* from tame weeks 19
mouth* earlier.
ACTIVITY BY FEDERAL RESERVE DISTRICTS.
Ohei k tran.-iuctiuii. cum pure.l with the same week a year ago
| KosTon T Sew Vo>¥ T~ftnrorH73iTa 1' 'Cleveiaufl | TfWtWnlf X Atlanta I
/ 0.3% I + 11.2% I —O.B % I —1.1% I +11.2% | —3.0% |
r Chfi-THTi ~\ fit 7Timi« T7Ur.TnwH.il. T KITS* ISTTnISFResI
[ —!».6% I +3.8% |_ +20.1% I 3.0 7o I —8.8% I +10.9% |
~ LEADING BAROMETERS.
Showing trend of important factor*.
% Change*
Present trend. from .vtor ugo
Business in dollars (checks cashed) Upward + 0.6
Employment (Department of Labor) Steady 3.6
Wages (Department of IJtbor) Steady 3.8
Cost of living (Industrial Conference Board).. Steady l9
Wholesale prices (Fisher's Index) Upward 1.2
Agricultural prices (Dept of Agriculture).... Upward +44
Movement of goods (car loadings) Upward 4.7
Retail trade (Federal Reserve Board) Upward + 7.4
Wholesale trade (Federal Reserve Board) .... Steady 0.0
Failures (Dun's) Steady +15.6
Bond prices (Annalist) Steady + 5.6
Stock prices (Annalist) Mixed +36.9
Stock market volume (sharea traded) Heavy + M
f Ail right* rassrvsd. Cambria** Aaaoolatss. Boston.*
Capital Traction Co. on one side of
the agreement and North American
Co. ns the party of the second part.
In this case there was full accord
and complete agreement for the merg
ing of the street railway companies
of Washington.
The Washington Railway Co. turned
down the proposed merger plan and
turned it down cold. Had the North
American Co., been in control, the mer
ger as far as the interested parties
were concerned would have been an
easy matter.
After the parties thereto have finally
come to an understanding, if they
ever do, there is yet another approval
to be obtained, that of Congress pull
in many different ways, with the urge
of the press and the people for lower
faros and unlimited and indiscrimin
ate transfers all to be agreed upon.
Know Their Bights.
The traction companies know their
rights, as defined by the Supreme
Court, and knowing them are not like
ly to be bluffed one way or another.
A merger proposition has so many
ends, is such a large proposition with
such enormous interests involved, that
it seems almost next to impossible to
reconcile all these interests including
Congress and the public.
In addition to the capital of the
Railway & Electric Co the Capital
Traction Co., has a capital of $12,000,-
000. lt has a bonded debt of $5,800.-
000, a closed trust and the only one
the company will carry.
In addition to its $6,500,000 common
stock, Washington Railway has $8,500-
000 preferred and has two direct bond
issues, first 4s, the original mortgage,
$11,643,000 and general and refunding
issue of $2,496,000. In addition, some
of Its constituents have bonds out
standing, City Suburban $1,703,000
and Anacostia & Potomao $2,947,000.
The Potomac Electric Power Co.
has $1,000,000 first ss. $5,199,000 con
solidated and $3,957,000 general and
refunding 6s, and in addition $7,000,-
000 preferred stock, issued compara
tively recently on the recommenda
tion of the North American Co., as a
method for avoiding the continued is
suance of new bonds.
The common stock of the company
is deposited as collateral back of the
first mortgage issue of the Washing
ton Railway Co., the 4s all these finan
cial interests involving rhany millions
of dollars, based on the present price
for *the common and all other
issues selling at a premium except
the Anacostia ft Potomac ss. City and
Suburban 5s and the Railway 4s.
And now President Ham of the
Washington Railway ft Electric Co.,
and the Potomac Electric Co. has
promised a slashing of electric cur
rent rate by January 1.
The company is to make the cut
graciously of its own free will.
JAPAN PLANS TO CLOSE
MINES TO ALL WOMEN
65.400 Now Employed at Various
Tasks Underground, Sur
vey Shows.
Correspondence of the Associated Pres*.
TOKlO.—Regulations barring wom
en from the mine pits and from pci
forming general work at night in all
mining regions of Japan are under
consideration by the social affairs bu
reau of the home office.
The hut eau’s figures show ihat
65.400 women are employed under
ground. This number is approxi
mately one-fourth of the total num
her of coal miners. There are 4.800
women working in the pits, of whom
about 70 per cent are in the mines of
Kyushu. There are also 1,8-70 hoys
under 12 years of age employed in
these mines.
TAuTiBYIoLD-TnVIER.
Montana Pianeer, 101. Recalls
When River Was ‘Main Highway ’
Corre»ptin(l(!iif-e of the Associated Pre*»
BUTTE. Mont —When William Ber
kin came to Montana in 1863, the Mis
souri River was the State’s main
highway.
Recently, when he celebrated his
101st birthday anniversary, he re
called that he constructed the road
from Fort Benning, then head of navi
gation on the Missouri River, to Vir
ginia City, territorial capital, and that
the road now is the, principal thor
oughfare between these points. Ber
kin also laid out the road between
Butte and the terminus of the Utah
& Northern Railroad, at Corinne,
Utah, over which the first copper ores
from Montana went to market.
FURNACE IN OPERATION.
NEW YORK. October 22 OP).—Colo
rado Fuel ft Iron Company has placed
in operation at Pueblo its new No. 16
open hearth furnace, built at a cost
of $250,000 to supply 5,000 tons of steel
monthly for the new structural steel
mill.
EARNINGS ARE LARGER.
NEW YORK, October 22 OP).—Gen
eral Outdoor Advertising Company
earned $3.50 a share on the common
stock in nine months this year, against
$3.36 in the same period of 1926.
CAPITAL TRACTION
STOCK SAGS AGAIN
Railway Preferred Is Leader
and Strong in Dealings
on Local Exchange.
BY EDWARD 0. STONE.
Heavy sales in Washington Railway
& Electric preferred and declines in
C. pital Traction featured Saturday s
market on the Washington Stock
Exchange.
Railway preferred, which hit par
by the sale of a single share on
Friday, opened yesterday at 99% on
sales of 20 and 9 shares respectively.
It then advanced to 100 on sales total
ling 315 shares. Among these trans
fers were two 100-share lots and one
50-.« hare lot.
While Railway preferred was sell
ing at ''high for the year, Capital
T lion was easing off from the high
mark of 112 reached earlier in the
week. In yesterday's trading the
stock opened at 108% and lost a
point during the session, closing at
107%. Trading was active in this
issue, reaching 90 shares.
Loral market observers ascribed the
slump in the price of the stock since
its recent peak to the withdrawal
from the Public Utilities Commission
of a tentative plan or suggestion for
the merger of the Capital Traction
and Washington Railway & Electric
companies. While the plan was pro
sented merely for the purpose of pos
sible discussion, it. had a buoyant ef
fect on Capital Traction stock until
its withdrawal was reported.
Potomac Electric Power 5% per
cent preferred was again strong yes
terday, selling at 108, Washington
Gas Light sold at 81, and sales
amounting to 30 shares were recorded
in Columbia Sand & Gravel which
opened at 103% and closed at 10-%.
One bank stock came out. American
Security ,& Trust moving at 484. 464%
and 464%, in lots totaling 30 shares.
The week ended with the bond market
quiet but firm. It was an ex
ceptionally interesting six days on the
Washington Exchange, local securities
once more dt“monstrating that the,\
nay no heed to what is taking?■place*
in the way of reactions in \\ all .street.
Firm Changes Capital Structure.
Officials of the National Mortgage &
Investment Corporation now are taking
steps to put into effect the important
changes in the company s capital
structure voted at the special stock
holders’ meeting held at the Carlton
Hotel the latter part of the week.
This meeting was called when it was
found that at an earlier meeting a
sufficient number of proxies to satisfy
company officials that the proposed
alterations had been considered by a
complete enough list of shareholders
At the second meeting the original
action was sustained by more than
200 stockholders in attendance, Frank
J. Hughes, the president, stated that
the attitude expressed at the meet
ing was a great stimulus to the of
ficers and directors of the company in
planning lor the future.
The changes reaffirmed by the
stockholders include the cancellation
of 64,604 shares of preferred stock
purchased by the company in open
market and the retirement of all out
standing $lO par value common
shares, giving in return one share of
no-par common for each 10 shares
of the old stock now held. The com
pany offers to Help stockholders ad
iust all fractional shares.
Officers of the corporation include
H. Rozier Dulany, chairman of the
board; Frank J. Hughes, president:
Clarence F. Donohoe, vice president:
Col. Mervyn C. Buckey, secretary,
and William D. West, treasurer.
Speaks on Use Insurance.
William Montgomery, president of
the Acacia Mutual Life Association
of Washington, will deliver an address
on “Can the Cost of Life Insurance
Be Reduced?" before the annual meet
ing of the American Life Convention
to be held at Dallas, Tex.. October 26,
27 and 28.
The convention was organized to
encourage upholding and maintaining
the business of life insurance; the up
holding of correct principles in the
conduct of the business and the cor
rection of any abuses which may arise
in the methods of transacting the
business of life insurance.
The 141 life insurance companies of
the United States and Canada that
are members have about $19,000,009,-
000 of insurance in force and assets of
about $2,500,000,000.
Cheaper Fuel Oil Forecast.
Bids of leading oil marketers tor the
Shipping Board’s 1928 fuel oil require
ments of about 11,700,000 barrels on
Atlantic and Gulf coasts, show a de
cline in price from last year.
These contracts probably are the
largest placed in the country and the
price scale submitted indicates, to oil
marketers, that fuel oil prices next
year will not be good. One large
marketer said that the bids “put the
lid on fuel oil for 1928.”
While the oil trade will regret any
drop In prices, the users 6f fuel oil for
house-heating purposes will rejoice if
ihe forecasts come true.
Other Financial Notes.
The Union Finance Co. has just
issued a report as of October 13, 1927.
The local concern now has capital
stock of $308,000, surplus of §20,000,
and undivided profits of $20,178.03.
Stockholders of the Pennsylvania
Railroad showed an increase of 374
during September, bringing total on
October 1 to 141,938, as against 141,-
564 on September 1 and 140,153 on
October 1, 1926. Since January 1,
1927, list shows increase of 736. Aver
age holdings on October 1 were 70.35
shares.
The Piggly Wiggly Corporation has
c r ’led for redemption on November 15
its $1,500,000 of 7 per cent debentures
at 105.
C. J. Gockeler, Y. E. Booker, Wade
H. Cooper, / I. J. Roberts and Hugh
Barr were among local bankers who
attended the recent reception at the
Press Club In honor of Admiral Sir
Walter H. Cowan.
Local bankers have received reports
from the American Express Co. stat
ing that the volume of travelers’
checks issued this year has been
$25,000,000 higher than ever before, in
dicating the smashing of all former
records in foreign travel.
Approximately 23,000 new r American
Telephone & Telegraph shareholders
have been added thus far this year
to the roster, bringing the total to
some 430,000, among which are 70.000
Bell System employes. Less than 4
per cent of the outstanding stock is
held in the names of brokers and
there are some 5,000 foreign share
holders,
- ■ —>
WILL FORM TOBACCO FIRM.
NEW YORK, October 22 Or
ganization of the Union Cigar Com
pany is planned under the laws of
Delaware to be allied with Union
Tobacco Company, which will be
headed by Thomas J. Maloney, for
years president of the P. Loriilard
Company. Capital has not yet been
decided. Stockholders of Union To
bacco, .it is understood, will be offered
rights to subscribe for stock of Union
Cigar at $5 a share in the ratio of
one share for each share of Union
Tobacco held.
I FIRST MORTGAGE j
LOANS fl
Courteous and prompt considers
tion of all application*. II
A.C. HOUGHTON 4k CO. Realtor* H
Money to Loan
Secant hy first deed of iruet on seal e*tat* I
Prevalime intene*! and euwimieitfon
Joseph 1. Weller h H & $ TTS* j
(First Mortgage
Loans
Applications Invited at
5 Vi%
On Improved Property
Construction Loans
at Minimum Rates
Glover iS Flather
1508 H St. N.W.
In Nearby Virginia
p* i / ffj Prudential
51/2 %■— -*
Commonwealth Investment to.
917 lAtk «*t N W I'hnnr M »tn
■ .■■■■ 1 in— i
Mortgage Money Loaned
at Low Interest Rates
Keonomir lornlitinn*
Tyler & Rutherford
I.oan Inrrextumclcnt Mutual Benefit
I.ife ln«. t'n.
1520 K Street Main 475
LOANS ON REAL ESTATE
Representing clients; have a j
fund to loan on real estate at
prevailing rate of interest.
WILLIAM B. WOLF
Attorney-at-I>aw
Room 851, Earle Bldg.
Otto-
First
*
Mortgage
Notes
—are secured on Improved |
Real Estate in the Nation's
Capital The loans on these
properties are made only after
rigid analysis by our Ap
praisal Committee of special
ists.
ACCRUED
ANNUAL
RETURN
| Shannon u luchS]
1435 R Street N.W.
Main 2345
We Will
Your First Trust
Loans
To Run 5 Years
No Curtail
s'h%
Interest
Wm. H. Saunders
Co., Inc.
Founded 188?
Main 1016 1433 K
V J
The New York Life Insurance Company
Offers to Make
First Mortgage Loans
On Improved Real Estate in the District ot Columbia
and Nearby Suburbs in Montgomery County,
Md„ for 3. S or 10 year terms on vour
Apartment Office Building
Home / O /yfl Business Property
Apply
IRLAYVJD AIL.DL. He ISAffSIVIEBi & <COD3I 3> A'K^r
Incotpor.tea
KIiIDMTiJAGE SL.OAN COBRfeSPO^'IDENT
1321 Connecticut Ave. Telephone Main 9700
i SAFE FIRST MORTGAGES
INVEST IN
WASHINGTON
The National Capital offers
most desirable investment op
portunity through our
6% FIRST MORTGAGES
j Over a Third
0 f a We have made our selection
Century P ro P ert i es under the guidance
, of long experience. These mort-
Without a . „
gages give assurance of regular
s income over definite periods of
time. They will not disappoint.
B. F. SAUL CO.
Main 2100 925 15th St. N.W.
THERE IS NO SUBSTITUTE FOR SAFETY
1-"- ,
VTNANCIAE.'
WE PAY MORE INTEREST
ON SAVINGS ACCOUNTS
Than An, Other National Ihmh
j in Washington
Interest on DAILY Balances
Come in and let ua explain
Commercial Nal l Bank
llth and G Streets
Resources, $17,000,000
R nOLDEN 'XINAI.nsnN PKESIOCNI
Investors Take Notice
Dividends Guaranteed
In Our
First Mortgage Notes
The Stifp«t Type of InTeatment
I miiiMliimtiiilc Security
Current Rate-. ,»f Interest Paid
Semi-annually
A. C. Houghton & Co., Realtors
1516 H St. N.W.
Phone M. 7536-7537
REAL ESTATE LOANS
5V 2 %
FRED T. NESBIT
1010 Vermont Are. Main 9302
WE FINANCE
J —all o* ♦n'V»m#»-nroduclnt
oron^rlv
Large Loans a Specialty
I Current nt %rwl ’antmipsion
Higbie & Richardson, Inc.
\~Vk%
First Deed of Trust
Notes for Sale
Secured by
Improved Real Estate in the
District of Columbia
Principal and Interest
GUARANTEED
REAL ESTATE
MORTGAGE &
I GUARANTY
CORPORATION
Me 1403 26 Jackson Place
r 'cr~z r—es Over C 4,000,000
L. E. B/iu-.b-rir, President
————
I Ascertaining
the Facts
IVo. 8.
fftUR Mortgage In-
vestment Depart
ment is itself called
upon to inquire in
detail before giving
its commitment for
a loan on First Trust
security: W ho are the
parties in the ldan
transaction, wha* has
been their record in
the payment of in
terest. taxes and
maintenance charges
in connection with
their residence.
1415 K St.
SI Main 4752.
13