Evening star. [volume], December 29, 1939, Page A-15, Image 15

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

Image provided by: Library of Congress, Washington, DC

                
E S. E. C. Refuses
I To Take C. & S. Issue
| From Finance Group
Commission Cuts
$10,000,000 From
Bonds Authorized
By the Associated Press.
The Commonwealth & Southern
Corp. won a partial victory yes
terday in a fight with Middle West
ern banking houses over a financ
ing program for its subsidiary, Con
sumers Power Co. of Jackson, Mich.
In a divided decision, the Secur
ities and Exchange Commission de
clined to take from New York in
vestment companies the handling
of a proposed issue of $28,594,000
of 31,; per cent first mortgage bonds
by Consumers Power. Fees for the
issue were placed at more than
$500,000 and a western or"
by Otis & Co., Cleveland, sought
to have the handling of the bonds
thrown open to public bidding.
Cuts Amount of Bonds.
However, the commission cut $10.
000.000 from the amount of bonds
to be authorized, and ordered im
pounding of the fees of the two
leading underwriters — Morgan
Stanley & Co., and Bonbright &; Co.
—until it can be determined wheth
er or not they are an "affiliate” of
the utility companies.
Commonwealth & Southern won
B complete victory, however, on the
proposed issue of 125,000 shares of
common stock, which Consumers’
Power will sell to Commonwealth &
Southern at $28.25 a share. The
parent firm already holds all the
outstanding common stock.
In authorizing issuance of $18,
594.000 of bonds for refunding some
outstanding securities of higher
interest rate, the commission said
that Consumers’ Power could belter
Obtain the additional $10,000,000 it
sought by issuance of common stock.
Willkie Issues Statement.
The utility wanted the additional
money for construction work.
Wendell L. Willkie, head of Com
monwealth & Southern, said in a j
statement that he hoped that failure
to get authority for the full amount
of bonds “will not require us to les
« son our extensive projected con
struction program in Michigan nor
act as a deterrent to the proposed
construction program of other utility
companies, whicii promise so much j
for re-employment.”
A spokesman for the Otis & Co.
Interests said they probably would
not make a formal statement, but
that It was felt that the decision
was a “partial victory for both
sides.”
Investing Companies
NEW YORK. Dec. 29 (&.—National As
sociation Securities Dealers. Inc.
Bid. Asked.
Admin Fd 2d Inc. , 12.35 13.14
Affiliated F Inc_ 3.66 4.01
•Amerex Hold _17.875 19.375
Am Bus Shrs...__ 3.35 3.71
Am For Inv _ 6.72 7.4<>
Am Gen Eq Inc. _ .38 .44
Am Ins Stocks 3.625 4.00
•Bankers Nat Inv Corp A 6.75 7.875
Basic Industry 3.98
•Blair & Co 1.25 2.25
Bullock Fund 13.875 15.25
Can Inv Fund 3.50 4.10
•Central Nat Corp “A” 26.on 3<M)o i
•Central Nat Corp “B”_ 2.00 3.00
Century Shrs Tr 25.22 27.12
Chemical Fund . _ 10.68 11.56 i
Comwlth Invest _ .. 3.54 3.85
•Continental Sh pf___ 8.50 10.00
Sorporate Trust _ 2.54 __
orporate Trust A A _ 2.44 _
Corp Tr Accum _ 2.44 _
Corp Tr A A mod 1 2.91 _
Corp Tr Acc Mod- 2.91 _
Cumulative Tr Sh 5.10 _
Depos Bk Sh N Y “A". 1.55
DffPOS Ins Shrs “A ’ _ 2.96 _
Depos Ins Shrs "B" 2.58 _
Diversified Tr C 3.85
Diversified Tr D 5.95 8.70
Dividend 8hrs 1.24 1.36
Eaton A- How Fund "A-l" 17.84 19.17
Equity Corp S3 pf _ 24.00 24.50
Fidelity Fund Inc _ 19.14 20.60
•First Boston Corp _15.25 16.75
First Mutual Tr Fd_ 7.10 7.86
Fiscal Fund Bk Sh_ 2.49 2.76
Fiscal Fund Ins _ 3.31 3.69
Fixed Trust Sh A _10.21
Found Tr Sh A _ 4.20 4.75
Fund Investors Inc_ 3 7.65 19.19
Fund Tr Shrs A _ 5.34 6.03
Fund Tr Shrs B _ 4.73
Gen Capital Corp _ _ 30.57 32.87
Gen Investors Tr 4 89 5.33
Group Sec Agricultural 5.62 6.12
Group sec Automobile 4.75 5.18
Group Sec Aviation 8.72 9.48
Group Sec Buildine 5 92 6.44
Group Sec Chemical 6 81 7.41
Groun Sec Foods 4.44 4.84
Group Sec Invest Shrs 3.18 9 47
Group Sec M'chandising 5.38 5.86
Groun Sec Ulnine 5 97 6.50
Groun Sec net’-oi*,um _ * 37 4.77
Groun P. P Equip 4.°o 4 os
C.roun fee Steel fi.fl.l R.1R
Groun See Tobacco 5.09 5 54
Tncorn Investors 3 6 °8 17.51
Independence Tr Sh 2.n7
Instl See. Bank Group__ 1 oo 1.20
Instl Sec. Insurance 1.33 1.47
Investors Fd “C” Inc 10.69 11.41
Kevstone Custodn B 1 . 26.25 28.73
Keystone Custodn B 2 20.98 23 on
Keystone Custodn B 3 14.21 15.58
Keystone Custodn K 1 14.34 15.70
K*ystone rustodn K 2 9.68 10.66
Keystone Custodn 8 2_ 13.79 15.20
Keystone Custodn S 3 10 42 31.53 i
Keystone Custodn 8 4 . 4.04 4.55
Manhat Bnnd Fund _ 6.88 7.59
Maryland Fund' _ 5.05 5.60 ,
ivin^n uhrM ii. _
Mutual Invest__ 10.61 11.60
Nation Wide Sec _ 3.84
Nation Wide Voting . . 1.16 1.41
Natl Investors . 6.0,> 6.41
New England Fund _11.86 13.86
N Y Stocks Automobile 5.36 5 81
N Y Stocks Aviation 11.33 11.13
N Y Stocks Bk Stocks 8.66 9.37
N Y Stocks Bldg Supply 6.18 6.81
N Y Stocks Ch*»miral 9.34 10.10
N Y Stocks Elec Equip 7.On 8.55
N Y Stocks Insurance 9.9*’ 10.71
N Y Stocks Machinery 7.67 8.30
N Y Stocks Oils __ 7.31 7.91
N Y Stocks Railroad 3.49 3.78
N Y S'ocks R R Equip 7.08 7.67
N Y Stocks Steel 7.15 7.85
North Am Bond Tr Ctfs_. 47.875
Nor Am Tr Shares 1953 1.42
Nor Am Tr Sh 1955 1.96
Nor Am Tr Sh 1956 1.90
Nor Am Tr Sh 1958 2.66
Plymouth Fund Inc — .40 .46
Putnam 'G> Fund 14.0° 11.99
Quarterly Income Sh 8.10 9.10
•Schoel’kopf-Hut A; Pom .50 1.15
Selected Am Sh Inc 9.16 9.99
Selected Income Sh 4.36
Sovereign Invest .68 .75
Spencer Trask Fund. _15.61 16.54
Stand Util Inc .46 .50
•State Street Invest- 74.00 76.75
Super of Am Tr A _ . 3.68
Super of Am Tr B . 3.84
Super of Am Tr AA - 1.61
Supervised Shrs lo.ll 10.99
Trustee Stand Inv C_ 1.57 1.67
Trustee Stand Inv D 1.51 1.61
?rustee St Oil Shrs A 5.33 5.43
rustee St Oil Shrs B 5.18 5.18
?rusteed Am Bk Shrs B_. .56 .62
rusteed Industry Shrs_ .86 -5?
.W^MoKton Fund _ 14.14 15.65
Quotations furnished by National Asso
ciation of Securities Dealers. Inc., which
states they do not necessarily reflect actual
transactions or Arm bids or offers but
should indicate approximate prices, and '
unless otherwise indicated, are as quoted
by the sponsors or issuers. . .
•Asterisk indicates, “Not quoted by spon
tors or issuers.”
U. S. Treasury Notes
m NEW YORK. Dec. 2ft OPi.—Prices quoted
hi dollars ind thirty-seconds.
Approx.
Pet. Month. Year. Bid. Asked, yield. ,
l»,s Mar., 1940_100.R ---- —
li'as June. 1940 _301.2.4 101.27
l1 as Dec.. 3940 _ 102.12 102.14 -
l'/as Mar.. 1941 - 102.1H 102.18
l5as June. 1941 - 102.17 102.19 -
1 >.s Dec.. 3941 _102.24 102.27 -
Ri Mar., 1942 -- 103 31 104.1 -
2s 8ept.. 1042 _ 105.14 105.10 —
l!,s Dec.. 1942 _104.IR 104.20 .18
R* June, 1943 _ 102.22 102.24 .32
lias Dec.. 1943 _ 102.20 102.28 .39
is Mar.. 1944 _ 101.27 101 29 .53
3,s June. 1944 - 100.26 100.25 .54
Is Sept.. 1944 _ 102.3 102.5 .53
United States Treasury Posit
By the Associated Press.
The position of the Treasury Decembt
year ago'
geceipts -
xpenditures _
Net balance - - --
Working balance Included -
Customs receipts for month -
Receipts for fiscal year iJuly 1)
Expenditures -
Excess of expenditures -
Gross debt . -
Increase over previous day
Gold assets -
_ k
NEW YORK STOCK EXCHANGE
(Continued From Page A-14.)
2:30 p.m.
Prev. 1939 Stock and Sales— Wet.
Hlch. Low. Dividend Rate. Add 00. Hlch. Low. Close, chce.
2 44 Weat'n Pacific pf -. 1 4s 4s 4s + It
87 161* Weat’n Union Tel . 14 26 26'+ 254s + IS
3714 1814 Westh'ae A B .625s 6 2714 2714 2744 + 14
121 8214 Weathae Elec t.SOs- 13 117 1164 11614 + W
2814 10'* Weston El Inst lg.. 1 27>4 27t* 271*
39V. 15V« Weatvaco (la) ... 7 .37'* 37 37 -1
3914 29 Weatvaco pf (1.50). 6 38V. 3714 3714 — 14
381* 1544 Wheeling Steel 2 314. 311* 3144 - 14
78 45 Wheel Stl pr pf (6). 1 71 71 71
12V« 814 White Dental (.60). 2 91* 9 9 + 14
15*. 7 White Motor .. 4 1244 1214 1244 - 14
7 814 White Rock (,50g).. 1 614 6V. 6V. + 14
444 14s White Sewing Mch. 7 444 414 444 + 14
3444 14 White Sew Mch pf 1 34 34 84 +1
1914 14 White Sew prpf.50g 1 20 20 20+14
314 1 Willys-Overland .. 6 144 144 144 + 14
614 24* Willys-Overl'd pf.. 2 314 314 3V. + 14
714 2'» Wilson A Co _ 9 644 514 514 + 14
314. 15 Woodward Iron_ 3 2314 2314 2814+14
6044 86 Woolwortb (2.40).. 78 3814 38 38 - Is
231* 1014 Worthington Pump 17 1844 1814 1814 - V.
2:30 p.m.
Prev. 1939 Stock and Sale*— Net.
High. Low. Dividend Rate. Add 00. High. Low. Close, chge.
63% 81% Worth P cv pr pf... 6 46 44 44% + %
85% 76 Wrigley (3a) 2 85% 85% 85% +1%
38% 18% Yale 4k Towne(.COa) 6 24% 28% 24% + %
21% 11% Yellow Truck 16 18% 18% 18%
127 98 Yellow Tr'k pf (7) 70s 114% 114% 114% - %
21% 9% Young Spg & Wire 4 10% 10% 10%+ %
56% 30 Ygstwn Sheet & T 24 46% 46 46 - %
34 17 Ygstwn Stl Dr (lg) 6 27% 26% 27 +1
22% 12 Zenith Radio (lg).. 2 16% 16% 16%+%
8% 2 Zonlte Products ... 2 2% 2% 2% + %
Approximate Sales of Stocks on the N Y Stock Exchange
11:00 A M _ 310.000 12:00 Noon . .. 500.000
1:00 P.M _ 660.000 2:00 P.M. 820.000
s Unit ol tredlng 10 shares.
r In bankruptcy or receivership or twins reorssnlied undtr
Bankruptcy Act. or securities assumed bv eucb companies.
Rates of dividend In the foregoing table are annual dlibarse
ments based on the last Quarterly or semi-annual declaration
Unless otherwise noted, epeclal or extra dividends are not In
cluded.
xd Ex dividend xr Ex right* a Also extra or extras, e Paid
last rear, f Payable in stock x Declared or paid so far this
rear, h Cash or stock, k Accumulated dlvldendi paid or de
clared this year
Soy Bean Trade
Breaks Records
In Chicago
By the Associated Press.
CHICAGO, Dec. 29—All records
for soy bean futures transactions
on the Board of Trade were broken
this month, figures released by the
board indicate,
iV; e ,u ioy bean contracts dur
ing December up to and including
yesterday totaled 22,402,000 bushels—
the highest for any month since
trading in soy bean futures was in
augurated three years ago, and ap
proached transactions for all 1938,
which amounted to 23,478,000 bush
els. Sales for 1939 to date totaled
78,924,000 bushels.
Earlier this month a pit was con
structed on the Board of Trade floor
to accommodate the expanding
trade in soy beans.
The downturn in wheat prices
during the past several days has
helped cut about 10 cents from re- '
cent soy bean high levels, but at
$1.20?4 for May contracts and
$1.1734 for July the bean futures
yesterday still were 35 cents or more
above prices a year ago.
Insurance Stocks
NEW YORK, Dec. 29 UP).—Association
of Securities Dealers, Inc.;
Bid. Asked.
Aetna Cas (3a> -- - 124'e 128Vi
Aetna Ins (l.HOa)_ 51 53
Aetna Life (i.20a>...__ 30'e .32’-a
Am Equit (D __ 21', 22’,
Am Ins Nwk C-jR) _ 12’, 14'/«
Am Reins < 1.00)_„ 45 4T
Am Reserve <1V_ 22'/, 23’.
Am Surety (2'£)..-_ 4S>2 50'a
Automobile III) _ 32>, 34',
Balt Amer ( 30a) _ 8'a "‘2
Carolina (1.30) _— 28 29'j
City of N Y (1.20) . 23 24'2
Conn Gen Life ( 80)_ 28), 28',
Conttn Cas (1.20a)_ 35 37
Fid & Det) (4a) _ 122 12<i
Firem's Nwk (.40) .. P'2 H
Frank Fire (la) ___ 31*, 33',
Gen Reinsur (la)_ 42 44',
Genre Home tla) 23 '/a 25'2
Glens Falls fl.6n>_ ;um4 41j4
Globe & Rep <V4>_ _ 11 12V*
Globe & Rut _ 16*4 1834
Gt Amer Ins (la)_ 28 29**
Hanover (1.20> 25 26*/a
Hartford Fire (2a)_ 821 a 85»/»
Home Fire Sec .- 1*4 2*4
Home Ins (1.20a)—_ 32Va 34’a
Homestead (1) IP1* 21
Knickerbocker (*/a)_ P 10
Lincoln Fire 2*« 2s* *
Maryland Cas _ CVa 3*«
Mass Bond (3*/*) _ 62 64 |
Merc Ins Pr _ 3 4»/a
Natl Fire <2) 63 65
Natl L berty (.20a> 7'2 8i2
N Hampshire (1.60a)_-- 47 49
N Y Fire < 80) 15*4 17*4
Nor East Ins 3*» 43*
Nor River (1/ _ . 25*4 27*4
Phoenix (2a) .__ 78Vi *2Va
Prov Wash (la) 3414 3614
Rep Ins Tex (1.20) 2734 29*4 .
Revere (P» In (1.20a) 25*2 27 1
Rh Isl Ins 3 41 i
Sr Paul Fire <8*_ 242^ 247
Springfield (4'2a)_ 123*-a 127Vi
Sun Life (15) _ 280 330
Travelers (16) _ 433 443
U S Fid & G (1)_ 21 34 23U
U S Fire (2) 52 54
Westchester (1.20a) 34*4 36V4
a Also extra or extras.
Quotations furnished by National Asso
ciation of Securities Dealers. Inc., which
states they do not necessarily reflect actual
transactions or firm bids or offers, but ,
should indicate approximate prices.
Foreign Exchange
NEW YORK. Dec. 29 <P’.—Foreign ex
change traders kept a tight rein on price
fluctuations of major European monies
today.
Of prime importance in the eyes of
money dealers was progress of efforts in
Europe tr> minimize the effects of the war
on trade. Banking Quarters were appar
ently waiting for further news of these ne
gotiations before taking a position in the
market.
Sterling dipped */• cent while the French
franc gained oo>i. of a cent in relation to
the dollar Other changes were negligible.
Late rates follow:
Great Britain in dollars, ethers in cents.
Great Britain, demand. 3.94**: Great Brit
ain. cables. 3.98*--*: 60-day bills, 3.91 */«: .
90-day bills. 3 89*8: Canada. -Montreal in i
New York. 88.6834; Canada. New York in ;
Montreal. 112.81*4: Belgium. 16.72. Den
mark. 19.33; Finland. 1.90n: France.
2.237*: Germany. 40.23n. benevolent 17.50
travel unquoted: Greece. .73n: Iluncary.
17.60n: Italy. 5.05: Netherlands 53.21:
Norway. 22.73: Portugal. 3.69n: Rumania
.73n: Sweden. 23.83: Switzerland. 22.44:
Argentina (official). 29.77: Argentina (free*.
22.65: Brazil (official). 6.05: Brazil (free*.
5 10: Mexico. 17.25n: Japan. 23.49: Hor.g
Kong. 24.72: Shanghai. 7.80: Yugoslavia.
“?.35n. Rates in spot cables unless other
wise indicated, n Nominal.
- i
Foreign Markets
LONDON. Dec. 29 </P>.—The stock mar- I '
set weathered the chilling effect of year- (
»nd adjustments and continued to advance ;
:oday. Textile issues were in good demand
and several speculative industrials af
:racted support. Interest in domestic rails |
:arried through to the close. British tov- I
’mment bonds inched ahead and a liberal j
sprinkling of gains dotted foreign bonds, j
Most commodity stocks, notably oils, also
improved.
gains were not fully maintained m the
bourse today, the market closed on a
steady footing. Suez Canal. Bank of
Franc* and Canadian Pacific ended slightly
lighcr.
- |
AMSTERDAM Dec. *19 <fP\.—A little ir
regularity crept into bourse price fluctui
ions near the close today. American issues
made the best showing.
LIVERPOOL. Dec. *’9 (IP).—Cotton fu
ures ended 10 to 1C points ahead. Scat
ered buying reflected firmness of over
seas markets.
Dry Goods Market
NEW YORK Dee. -’9 i/P’—Worth Street
telling agents reported routine cotton goods
justness today—the last trading day of thn
year. Mills held firmly to established prices.
Business in rayon goods continued fair.
Pigment taffetas, crepes and print cloths
were In most demand at firm prices.
The market for silk goods remained flat.
Woolen goods trading was on the aulet
ilde.
London Gold and Silver
LONDON, Dec. "9 t/ptBar silver, 22',id.
iff A, (Equivalent, 40 80 cents on basis of
lollar at *4.03.) Bar gold. 168s, un
hanged (Equivalent. $33.85.)
New York Sugar
NEW YORK. Dec. 29 </P)—Sugar fu
ures No. 3 opened unchanged to 1 lower,
lanuary. unquoted; March. 1.88; May.
L 93; July. 1.97; September. 2.00.
Zrude Rubber Futures
NEW YORK. Dec 29 '/Pi.—Crude rub
>er futures opened 8 lower to 0 higher,
yfarch. 19.00-19.01: May. 18.08-74; Julv. ;
18.51-52 •
_ :
London Money Rates
LONDON. Dec. 29 (/Pi.—Money, P«-l per
tent. Discount rates: Short bills, 1A-1V*
>er cent: 3-month bills. 1 U-l A.
ion j
t
r 27, compared with comparable data a -
December 27. 1939. December 27, 1938. >
$5,073,509.23 $20,080,091.96 !
20.723.288.28 82.740,531.15 5
2.505,591.764.98 3.110.008.325.41 S
1,797,600.928.51 2,480.009.374.09 :i
24.950,760.65 22.919.547.17
2.727,688.441.20 2.905.318,900,77 ;!
4.702.024.631.2* 4.460.199.302.98 i
1.975936.19008 1.680.880.402.21 j
41,933.240.47308 39.416.548.243.51 i
5.055.588.68 —- i
17,820,373,190.22 14,470,980,948.18
L
Foreign Traders Granted
'Seizure' Protection
By the Associated Press
NEW YORK, Dec. 29.—Foreign
traders here today began planning
shipments of goods after the turn
of the year with the added protec
tion of Insurance against British
or French seizure on certain
voyages.
, Conferences lasting over a month
between traders and insurance men
culminated in announcement yes
terday by marine underwriters they
would provide "seizure” protection
under war risk insurance for addi
tional premiums ranging from 5
cents to 50 cents per $100 of cargo
value.
The “seizure” protection, pro
vided only on ship routes not in the
war combat area, is to be at the
following rates:
Shipments between the United
States and the Philippines, 5 cents
per $100 of cargo: from North,
South and Central America to the
United States, 121* cents; from
South and West Africa to the
United States, 25 cents; from East
Africa, Asia (excluding U. S. S. R.
and other countries bordering upon
the Mediterranean or Black Sea),
Australasia and the East Indies, 50
cents.
Vacuum Cleaner Sales
Break All Records
By the Associated Press
CLEVELAND, Dec. 29.—November
vacuum cleaner sales were higher
than any other November in history
Secretary C. G. Frantz of the
Vacuum Cleaner Manufacturers’ As
sociation, reported today.
Sales of 141,066 broke the previous
mark of 139.843 set in November,
1935. They compared with 137.901
in October and 119.506 in November,
1938. Eleven months’ sales of 1,279,
218 .represented an 8.43 per cent
ncrease over 1,179,720 cleaners sold
in the same period last year.
Automobile Output
Curtailed by Holiday
3> the Associated Press
DETROIT, Dec. 29.—Noting that
he working week was shortened by
he Christmas holiday. Ward's auto
motive reports today estimated out
>ut of the Nation's automobile plants
ior the current week at 89,365 cars
ind trucks, compared with 117,705
ast week and 75,215 units this week
i year ago.
The service pointed out that
production remained about 15 per
:ent above its comparable 1938 level.
iVill Build New Bank
WINCHESTER, Va„ Dec. 29 iff).—
rhe First National Bank of Berry
/ille announced today the signing of
i contract for the erection of a
lew building on a site adjoining
he recently completed post office,
rhe bank building will be of Colonial
style architecture.
Steel Pay Rolls
Jump 16,000
Names in Month
By the Associated Press.
NEW YORK, Dec. 29 —The steel
industry had more than 561,000 em
j ployes on its pay rolls in November,
i the American Iron and Steel Insti
! tute estimates. This was 16,000 more
| than in October and 111,000 more j
than a year ago.
Steel pay rolls during the month ;
Jumped to $86,682,000 from $83,421,- ;
000 in October and $61,054,000 in
November last 'year.
Public Service Cuts
Construction Budget
NEWARK, N. J„ Dec. 29 (/Pj.—
Public Service Corp. of New Jersey
has announed authorization of a
1940 construction budget of $17,
500,000, a figure $6,000,000 under the
1939 allocation.
Boston Wool Market
BOSTON Dec "9 UPi I United States De
partment of Agriculture).—Domestic wools
were mostly very slow on the Boston market
today The lew inquiries- being received
werr largely for merino wools of foreign
origin A few sales were being closed on
spot South American merino wools at steady
prices and an occasional order was being
placed for merino wools to be imported from
Australia and South America. Quotations
on domestic wools were unchanged com
pared with prices quoted earlier in the
week but they were largely nominal be
cause of the lack of trading
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915 F ST. N.W. ORGANIZED 1879
A 1
Sugar Quota Figure
Seen Unlikely to Aid
Futures Market
Government Expected
To Place Total at
7,000,000 Short Tons
By J. G. DONIEY.
NEW YORK, Dec. 20.—In the
lower Wall Street district, where the
sugar trade is largely centered,
opinion is rather unanimous ac to
why the domestic futures market
made a disappointing response to
the restoration of sugar marketing
and Import quotas.
The trade, being rather hard
boiled, looks at it in this way: There
was practically a gentlemen's agree
ment with Cuba to cut the tariff,
and the restoration of quotas made
that an automatic operation, for
an agreement was signed recently
providing for such a reduction once
restrictions were restored. At the <
same time, 1940 being an election
year, it was not undesirable to have
benefit payments for crop restric
tions restored, also as an accom
paniment to the reinstitution of the
quota system of controls.
The benefit payments conditional
on crop controls will go to beet :
growers of the Western States and
to cane growers of the Middle South,1
— 1 a 1
also to cam growera of Hawaii and1
Puerto Rico. There are other con
ditions, none of them onerous,
which must be met before growers
can qualify to receive benefits.
Low Sugar Market Seen Desired.
Because the trade takes such a
practical view of the restoration of
quotas, it does not look for a quota
figure which is likely to be of any
help to the futures market. In
other words, the belief still is that
the Washington authorities want a
low sugar market and will do noth
ing which might be viewed as aiding
the price. And. under war-time
conditions, a quota figure which
might be viewed as "tight” would
undoubtedly put spurs to the mar
ket.
That is whv the guess in trade
circles is that, when the quota figure
Is announced, either late this week
or early in the New Year, it will be
op around 7,000.000 short tons. Such
i figure would comDare with the
L939 quota—which was lifted after
die war touched off a wave of hoard
ing purchases bv consumers—of
1,755,386 short tons, and with total
•stimated domestic distribution in
1938 of 6.666.694 tons.
6,285,000 Tons Consumed.
With mainland cane deliveries
•stimated, total United States con
sumption for the first 11 months of
ihis year reached about 6,285,000
ons, as compared with 6,024,350 tons
n the comparable period last year.
Dn the basis of the total for the
first 11 months, total distribution
'or this year is expected to approxi
nate 6,800,000 short tons.
The most interesting recent de
velopment in sugar has been the un
expectedly heavy purchasing of raws
for British account. Over the last
10 days the British have contracted
for 110,000 tons of raws—50,000 of
San Domingo, 50.000 Cubas. and
10.000 Haitian raws, the Cubas at
1.50 cents and the others on a 1.40
cent basis. Such buying was un
expected because it had been as
sumed that Britain was getting
ample supplies from the colonies,
principally South Africa. So far as
is known in the trade here, sugar
cargo losses have so far not been
heavy, the full extent of such known
losses being two cargoes from Cuba,
totaling not over 14,000 tons of raw
sugar.
Ample Provision for Losses.
The assumption is, therefore, that
Britain is making ample provision
against possible future losses of :
sugar cargoes, while making up for
losses already suffered. The British
have ample refining capacity to
handle all their needs and are not
expected to buy refined sugar here
unless, at some future stage of war
activities, manpower becomes more
important at the front.
Next to the United States, the
United Kingdom is the largest sugar
importer in the world, taking 2,
413.000 tons of raws in 1938, as com
pared with our imports of some 4.- j
222.000 tons during that year. On
the exporting side, Cuba leads the
world, with shipments of 2,438.000
tons in 1933, and Java is in second
place, with 1,078,000 tons. World
sugar production during the year j
ended August 31, 1939, approximated
29.684.000 long tons, raw sugar, as
compared with 30,967,000 tons the |
previous year. Current world pro
duction is fully one-third greater
than during World War days.
Head Cracks Stone
While speeding on his way to fire
practice in Holmflrth, England,
Auxiliary Fireman R. Wilshaw fell
iff a Are truck and landed head
flrst on the pavement, cracking the
flagstone, but suffering no injury
nlmself. He was wearing a steel
nelmet.
“Monopoly,” the game popular In
his country for some time, is now
hiding favor in London.
Money for Construction Loans
and
Loans on Completed Properties
(Owner occupied or rental)
Favorable Rate
FIRST DEED OF TRUST ONLY
GEORGE I. BORGER
643 Indiana Ave. N.W.
Nat'l 0360
. ~ ."--‘gl
This is not an Offering Circular, Tht offer of these Bonds is made only by means of the Ottering Circular. 1
$60,000,000 I
Louisville and Nashville Railroad Company |
COLLATERAL TRUST BONDS
$30,900,900 TEN YEAR J'/,% BONDS
Dated January 1,1940 Due January 1,1950
$30,000,000 TWENTY YEAR 4% BONDS
Dated January 1,1940 Due January 1,1960
Interest payable January 1 and July 1
Collateral Trust Bonds until called for redemption are exchangeable for Extended Unified Mortgage
Bonds of the same maturity in equal principal amounts to the extent that Extended Unified
Mortgage Bonds are held as collateral under the Indenture securing the Collateral Trust Bonds.
Cumulative semi-annual sinking fund of $150,000 to be applied to the purchase or redemption of Extended Unified |
Mortgage Bonds due January 1, 1900 or Twenty Year Collateral Trust 4% Bonds. |
Collateral Trust Bonds and Extended Unified Mortgage Bonds redeemable at the option of the Company, in whole or in |
part, upon 45 days’ notice. V/i% Bonds redeemable on any interest payment date at the following prices and accrued
i interest: to and including January 1,1943, at 103%; thereafter to and including January 1, 1940, at 103%; thereafter to
and including January 1,1948, at 101%; and thereafter redeemable at any time at 100% and accrued interest. 4% Bonds
redeemable on any interest payment date at the following prices and accrued interest: to and including January 1, 1944,
et 105%; thereafter to and including January 1, 1948, at 104%; thereafter to and Including January 1,1951, at 103%;
thereafter to and including January 1,1954, at 102%; thereafter to and including January 1,1957, at 191%; and thereafter
'( redeemable at any time at 100% and accrued interest.
The issue and sale of these Bonds and the extension of the Unified Mortgage Bonds are subject to authorisation
by the Interstate Commerce Commission.
In the opinion of counsel the Unified Mortgage Bonds are legal investments for Savings Banks in the States of New York,
§ Massachusetts and Vermont and their extension as planned will not impair their legality for such investment.
The Louisville andXashville Railroad Company hat summarized as follows its letter doted December18,1939,
> ' scribing this issue. The entire letter with Exhibits should be read prior to any purchase of these Bonds.
the company Tht Company, which has been in continuous operation since 1859, now owns 4,688 miles of
railroad and operates 4,889 miles. It owns 71.7 8% of the capital stock of The Nashville, Chattanooga
4c St. Louis Railway which operates 1,111 miles. These lines form a comprehensive system serving the Kentucky coal
Helds and important commercial and industrial centers of the Middle South from the Ohio River to the Gulf.
! PLKPOSB The net proceeds to be received by the Company from the sale of the Bonds ($59,409,000 exclusive of
Of IMCB accrued interest) and an additional $1,800,000 will be deposited by the Company with the Trustee under jj
the Indenture securing the Collateral Trust Bonds, and the Trustee will be obligated to use the
$61,200,000 so deposited to purchase $60,000,000 of the $69,243,000 principal amount of outstanding Unified, Fifty
Year, 4% Mortgage Bonds due July 1,1940 with the July 1,1940 coupons or rights to interest, at a price of 102% flat.
The Trustee will be obligated to extend half in principal amount of the Unified Mortgage Bonds so purchased to
January 1,1950 with interest at the rate of 3l/y% per annum and to extend the other half so purchased to January 1,
1960 with interest at the rate of 4% per annum. Prior to delivery of the Collateral Trust Bonds the Company will
deposit with the Trustee of the Unified Mortgage sufficient funds to pay principal of and interest to maturity on
the remaining $9,243,000 of Unified Mortgage Bonds, which bonds will be retired and cancelled.
EABNINGS The following compilation has been prepared from the Condensed Statement of Income of the
Company (Exhibit B attached to letter dated December 28,1939, describing the Bonds) and is subject
to the notes forming an integral part of that statement and to the information in the Statement of Profit and Loss
(Exhibit C attached to said Utter).
Yemro Ended Tetml Rmilwmg Jmcmme A vmilakle Tmtml Nml
Dmcmmkeril O permit m§ Itmcemam Ft Fixed Chmr§m Fixed Chmr§m Jncmm* 1
1929 $122,032,193 $24,740,541 $11,013,999 $13,726*42
1930 112,424,563 17,633,805 11,027,723 6,606,082 f
1931 86,999,192 11,798,708 10,758,762 1,039,946
1932 63,898,844 8*97,835 10,706,710 2,108,875 Lou
1933 65,639,216 12.386,711 10*90,995 1,795,716 |
1934 69,947,150 13,417,409 10,450*24 2,967,385
1925 75,679,319 14,444,027 10,315,084 4,128,943
1936 91,040,151 20,052,235 10,423,763 9,628,472
1937 90,194,993 16,676,922 9*76,576 7,100,346
1938 79,394,560 12,189,653 9,483,637 2,706,016
Mltttn Mmotht
Ended Pits MS
1938 71,922*75 11,042,327• 8,694,745 2*47*8r
1939 80,531*61 15,113,854* 8,683,090 6,430,764•
* Excluding tht Company's proportion (t151,670) of tht nti ion in tht first eltvtn months of 19tt and its proportion (#•? S .906) I
ef the ntt profit in tht first tltvtn months of 19S9, after rent, from operations of the Clinthfitld Railroad Comoany. j
■ ■ i ne collateral 4 rust soruuart at mu time* to oe tec urea mu in cam or 4»v^ inprincipal amount
of the Company's Unified Mortgage Bonds, or partly cash and partly Unified Mortgage Bonds in the |
above percentages. The Extended Unified Mortgage Bonds are to retain the lien of the Unified Mortgage, except that
as to the mileage covered by both the Unified Mortgage and by the Atlanta, Knoxville and Cincinnati Division i
Mortgage (approximately 08 miles of important main line) the lien of the Unified Mortgage is to be subordinated
to the lien of the Atlanta, Knoxville and Cincinnati Division Mortgage. The Unified Mortgage, in the opinion of
the Company’s counsel, is a lien on 1,340 miles of railroad: of this mileage, after giving effect to the above
mentioned subordination, it will be a first lien on about 1,804 miles. The Company’s first and Refunding Mortgage,
under which $10,070,000 of bonds are outstanding in the hands of the public, is, in the opinion of Company’s counsel,
a lien Junior to the lien of the Unified Mortgage on all of the mileage covered by the Unified Mortgage, and the first
and Refunding Mortgage is also a lien on 3,302 additional miles, subject as to a part of such mileage to the liens of
various mortgages in so far as they attach.
nilClASl Subject to certain terms and conditions, the Company has agreed to sell to Morgan Stanley.
ie Co. Incorporated and the latter has agreed to purchase from the Company the Ten Year
Collateral Trust 3%% Bonds at 99%% and the Twenty Year Collateral Trust 4% Bonds at 98%% plus accrued
interest in each case to date of delivery. 19 investment banking houses have accepted from Morgan Stanley Sc Co.
incorporated several participations, aggregating $50,150,000 principal amount of Bonds, in this purchase. /
i The foregoing Is merely a brief outline of certain information contained in the Offering Circular
I dated December 29, 1939, and is subject to the more detailed statements therein. The entire |
Offering Circular should be read prior to any purchase of these Bonds. Copies of such Offering
Circular may be obtained from the undersigned or from any other underwriter of those issues.
FRICKS
Ten Tear f%% Bandy, 101% and accrued intereyt
Twenty Year 4% Bandy, 100l/g% and accrued intereyt i
These Bends are offered subject to prior sole when, as and if issued and subject to authorization by I
the Interstate Commerce Commission and also subject to the approval of Messrs. Daws Polk Wardwell I
Oardiner 3r Reed of all legal proceedings in connection with their issue and sale. It is expected that I
delivery of Bonds in temporary form, exchangeable for definitive Bonds when prepared, will be made at I
the office of J. P. Morgan Sr Co. against payment therefor in Mew York funds. ■
In order to facilitate the distribution of the Bonds by attempting to stabilize the price thereof, ■
Morgan Stanley Sr Co. Incorporated reserves the right to purchase and sell Bonds, in the open market or fl
otherwise, for either long or short account. This statement is not an assurance that the price of the H
Bonds will be stabilized, or that the stabilizing, if commenced, may not be discontinued at any time. E
MORGAN STANLEY it CO. I
/aa*r»arat«rf
KUHN, LOEB it CO. HARRIMAN RIPLEY £ CO. SMITH. HARNKY it CO. 1
/HHywaM ■
THE FIRST BOSTON CORPORATION BLYTH it CO., INC. KIDDER. PEABODY £ CO. I
LAZARD FRERES it CO. LEE HI G GIN SON CORPORATION GOLDMAN. SACHS it CO. I
LEHMAN BROTHERS BONBRIGHT it COMPANY W. E. HUTTON it CO. J. J. B. HILLIARD £ SON I
EQUITABLE SECURITIES CORPORATION W. L. LYONS it CO. ALMSTEDT BROTHERS I
December i9,1939. H
A * \ H