Evening Star Newspaper, November 15, 1925, Page 55

FINANCIAL BANKS ARE BUYERS IN BOND MARKET: Action Based on Merits of Certain Rail Issues as Investments. BY GEORGE T. HUGHES. Bpecial Dispatch to The Star. NEW YORK, November 14.—The Improvement in the bond market that started the first of the month hus been carried further this week and the demand has extended over a Wider range of securities. It is true that directly after the raise in the rediscount rate of the Boston Fed- eral Reserve Bank and the slump in the &taock market which followed there was a wavering in the bond prices, but that was corrected later &nd the comparatively trivial losses more than pegained. The significant point about the buying this week was that securities i demand included the underlying llens bf standard railroads, bonds With little or no speculative attrac- tion under ordinary circumstances and generally bought purely on their investment merits. Banks Heavy Buyers. The fact that this buying was fnitiated by banking interests, rather than by individual investors, in no way detracts from its for well informed bankers do not ®ccumulate securities of this grade unless they are satisfied that under- Iving investment conditions are sound and that the chances favor &ppreciation it market price. What this means, of course, is that there 1s 1o longer concern over the money outlook As to money, the important devel- opment of -the weck was the ralse in the Boston bank rate already re- ferred to. This immediately started discussion as to the New York bank making a similar move, but the dis- cussion subsided when it was an- nounced atter the weekly meeting of ew York bank directors that there had been no change Whatever the future may develop in respect to the rediscount rates of the various Federal Reserve Banks, it cannot be said that 4 per cent is high anywhere. As it stands now all the Federal Reserve Banks except the New York, Philadelphia, Cleve- land and San Francisco institutions charge 4 per cent on rediscounts and if that were to become the uniform rate for the system it would not be anything to become disturbed about. Money Appears Steady. But there is nothing iff the weekly Statement of the Federal Reserve Banks as a whole or of the New York bank in particular to indicate that money is going any higher. For the svstem there was a decrease of $71,700.000 in discounted bills and a rise in the reserve ratio from 71.5 per cent (n W ago to 72.3 per cent. The New York bank reported a drop in discounted bills of $38,100,000 and @ rise in the reserve ratio from 81.2 per cent to ver cent. In reality, this is a position of extraordinary strength. Moreover, the season of greatest demand on the money supply for commercial purposes is over now. until the beginning of the new year and while stock market estate speculations absorb large amounts, so far this has made little st one thing that mi change the outlook, and that is u";I::d! e ings. In recent & has been on a this might easily if it does the whole sub- © to be re-examined. for the securities which with variations in money rates. With regard to those depend- ent for their current valuation on earnings, a good deal of discrimination is in order. Much Care Is Needed. Take the railroad list, for instance. If prevailing prices for dividend-pay- ing railway stocks are considered on & yvield b it will be found that in many cases the return to the investor is becoming small compared with that 1o be had from bonds and preferred stocks. There are, of course, excep tions, and this is 4 matter with whic} speculators are not in the least con. cerned, but it is one which investors cannot afford to_overlook. What the railroads would like to do is to be able to raise new money by selling common stock. To do this they must offer the shares at prices to show satisfactory returns to the investor, even if he is convinced that railroad stocks have once more veached an investment status, This necessity of making prices and ylelds attractive may lead to some dividend increases, which, of course, would Justify recent prce advances. - But the number of railroads in a position to rger dividends is limited. There is not much new to say about the foreign situation. Market prices for foreign dollar bonds have been well maintained all week and the aver. age is around the high of the year. The upward movement, however, seems to have halted for the present. The great deterrent to confldence is the French situation. (Covyright CEMENT PLANT SOLD ON $3 305,000 BID Federal Judge Soper Acts as Auc- tioneer in Case of Tide- water Company. So much respond 1925.) ovember 14.—Judge »per in Federal Court yes- doffed the role of jurist and became for a_time an auctioneer. “What is the first bid for the Tide- water Portland Cement Co.?” asked the judge. He was finally and the compan erty, trade mark, became the property Portland Gement Co. The Tidewater Co. last into the hands of receiver: Bowen and William J. O' October 2 the North American Ce- ment Corporation made a bld of $2,877,000 for the company. The re- cefvers recognized the bid, but it was ot ratitied by the court. Then the Lehigh Co. placed a high- er bid, which was submitted to the court for ratification. Judge Soper, however, instead of ratifving the bid, reopened the hidding and the auction was on in the courtroom. The company was organized in 1911. Its largest holdings are at Union Bridge, Md. FLOUR PRICES LOWER. MINNEAPOLIS, November 14 (A). —Flour, 5 to 10 lower at 8.60a8.80 a barrel. Shipments, 46,466 barrels. SPOT COTTON HIGHER. NEW ORLEANS, November 14 (#). —Cotton futures closed barely steady at net advance of to 29 points. 19.90-96; March, 19.64-70; May, 45 July, 1913 bid, 19.15 asked; December, 2! Spot firm, 45 pomt- up. m&dd\ln(, B0.30, Morris A terday offered $3,305,000 all its real prop- title and good will of the Lehigh July went Jesse en. C importance, | and real | BOND SUMMARY FOR THE WEEK |THE YEAR 1925 TO DATE ON THE WASH.| STOCK PLAN ANNOUNCED. Low. 10128 9a-22 10221 96-5 102 eg4 10223 99-8 103~ 98.8 10708 99-8 Low. High, ——if 100% THE SUNDAY STAR, WASHINGTON, D. C., NOVEMBER 15 1925—PART 1 B, Lo U. 8. BONDS. High. 1925 — 10129 99 26 Liberty ass 1932-47 Low. 99-24 99-14 Last. Yierd. 9919 3 59 102-30 101-1 Liberty 18t 4148 1932-. 41.'. 10131 101-24 937. 101-19 100-20 Liberty 2d 438 102-1 101-1 Liberty 3d 434s 1928 103-9 101-20 Liberty 4th 43 1933. 10»- :D 104-13 Treasury 4%s 1947-62. 4 FOREIG Argentina 68 A 1957. Argentina 7s 1927 Austrian Govt bs. Austria st 78 1943 Belgium 6s 1965. Belgium 7%81 1018 1027 % Caechoslovakla 8s 1951 Denmark 6s 1942. Dutch East Indl . Dutch East Indies 6s 1962. French Govt 7% 1941. French Govt 8s 1945. German 7s 1949. Holland-Americ: Japanese 4s 1981 Japanese 6% s 195 Jergens Utd Margarine 65 1947 Lyons 65 1934. Marseilles 681934 Netherlands 6s 1972. 4 Paris-Lyons-Med 6s 1958. % Quecnsland 6s 1947 Queensland 7s 1941 Rio de Janeiro 831946 Paulo, State of, 88 1936. ... Seine, Dept of. 7s. Serbs Crotes Slovenes 881962 Sweden 65 1939. Swiss 5les 1946 United Kingdom 5% 1929 United Kingdom 5%s 1937....... INDUSTRIAL AND MISCELLANEOUS. 94% Amer Agri Chemical 7348 1941... 103% Amer Smelt & Ref 1st U8l Am. Smelt 1st s 1942 106 Amer Sugar Refining 6s I"'l . 101% Amer Tel & Tel cl tr 4 . 91w Amer Tel & Tel cl tr 85 1946...... 100% Anaconda Copper 6s 1953. 101 ‘Anaconda Copper cv deb 78 '3 Armour & Co 4%s 1939 Atlantic Refining deb 68 1937. Bell Tel (Pa) ref 68 194 sree 1014 Bethlehem Steel p m . Bethlehem Steel s 63 1943.. Chile Copper 631932....... Cons Coal (Md) 1s ref 85 1950 Cuba Cane Sug cv ~eb 8s 1930 Detroit Edison ref ¢s 1540 Dodeze 6s'41... Empire Fuel & Gas Goodrich (B F) 6%s 1947. Goodyear Tire 8s 1931. Goodyear Tire 8s 1941. Humble O1l & Ret 5%s 1932 Indiana Steel 55 1953. Inter Mer Marine 65 1941. Inter Paper 5s B 1947. International Tel ret Kelly-Springfleld 85 19 Lackawanna Steel 65 1350 Liggett & Myers 58 1951 Midvale Steel 58 1936...... New England Tel 65 1952. New York Edison 1t 63%s 194k . NYGasELH& P 531948 New York Tel 435 1939. New York Tel 68 1941. % North American Edlson 63 1952.. 101% Pactfic Gas & Elec 55 1942.. 7 Pacific Tel & Tei bs 195 Philadelphia Co ref Gs 194 Public Service 6 Sinclair Ol 75 1937 Skelly 6148 1927 South Porto Rico Suga Union Bag & Paper 63 D. United Drug 6s 1944 U 5 Rubber 738 1930 4 U SSteel s f5s1963 Utah Power & Light 65 1944 Va-Carolina Chem s £ 7s 1947 ‘Western Union Tel 6%s 193! Wilson & Co 1st 68 1941. Wilson & Co cv 7348 1931. RAILROAD. Atchison gen 45 1990 Atlantic Coast Line Balto & Ohio gold 48 1943, Balto & Ohiocv 4145 1933.. Balto & Ohio ref 55 1995, Balto & Ohfo 68 1929. . B&OPIttsLE&E W Va 4s1941. .. B & O Southwestern Div 5 cfs 50. Brooklyn-Manhat s f €3 A 196/ Canadian Northern 6%s 134 Canadlan Pacific deb 4s. al Pacific 4s 1 peake & Ohio cv 4% 3 1930.. 114% 103% 1953, 44% Chicago & Alton 3% 1950... 100% Chi B & Quincy 1st ref 5s 1971.. .. % 71% Chi& Eastern Ill gen 58 1951 19% Chi Great Western 45 1959 ChiM & St Paul cv 43819 Chi M & St Paul gen 4%3 1989 % ChiM & St Paul ref 4%s 2014 * Chi M & St Paul cv 68 2014. 107% Chi & Northwestern 6148 1936. 73% Chicago Rallways 65 1927.. 83% ChiR I & Pacific ref 4s1934... 914 Chi Union Statlon 4y 1964. 116% Chi Union Station 6%s 1963 76% Chi & Western {nd con 48 19 1024 € CC & St Lref 65 A 1929. 104% Clevcland Term 5% 1972 Colorado & Southern 43%s 1935... Cuba R R 58 1962.... Delaware & Hudson 6%s 1937. Den & Rio Grande con 45 1936 D. & R. G. West 53 1955. Detroit United 4%s 1932 Erie 1st con 42 1996 Erle gen lien 45 u| Erle cv 48 A 1363 Eriecv4sD 1963, FlaEC5s Grand Trunk 5t deb 65 1936, Grand Trunk 75 1940. Great Northern gen & Great Northern gen 7s Hudson & Manhattan ref 68 1957. Hudson & Manhattan adj 58 1957 Illinois Central 5145 1934. Inter Rapid Transit 5s 196 Inter Rapid Transit cv 7s 1933.. Inter & Great Nor adj 6s 1962 Kan C Ft Scott & M 45 1936. Kansas City Southern 3s 1981 Kansas City Southern 6s 1950 Lake Shore 45 1928.. Lake Shore 4s 1931. Louls & Nash unified 451940, .. Louls & Nash 1st ref 5%s 2003, M1l Elec Ry & Lt 15t ref 68 61 % Mo Kan & Tex adj bs 1967, Mo Kan & Tex prIn 5s A 1962 Missouri Pacific gen 48 1976... N O Tex & Mex inc 5s 1935 4 New York Cent deb 45 1934. . New York Central deb NYChi&StL5%s74. New Haven deb 48 1957. NYNHG&H cvdeb 631948 N Y West & Boston 4%s 1945. Norfolk & Western con 4s 1996... Norfolk & Western cv 6s 1929, Northedn Pacific 3s 1947 Pennsylvania gen 5s 1968. Pennsylvania 6%s 1936, Peoria & Eastern inc 4 Pere Marquette 1st 5s 1! Reading gen 48 1997... Reading 418 67 Rio Grande Western cit 48 19 RIArk&L 4%31934. StLIM&SR &G 4s1933. St L &San Fran prin 4s A St L & San Fran prin 6s nlo StL & San Fran5%sB 1 St L & San Fran ad) 6 St L & San Fran inc 6s 1960. Seaboard Air Line ref 4s 1953 Seaboard Air Line adj 5s 1949 Seaboard Afr Line con 6s 1945. Southern Pacific cv 48 192! Southern Pacific col 4s 194 Southern Pacific ref 4s 19565, Southern Ry gen 45 1956 Southern Ry 1st 55 1994. . Southern Ry dev 63%s 1956. Third Ave adj 55 1960. Union Pacific 1st 4s 1947 Union Pacific cv 4s 1927. Virginian Ry 1st 6s 1962 Wabash 1st 63 1939 94% Wabash 5% '75.. 2 63% Western Maryland 962. 90% Western Pacific 5s 1946. 96% . 86% 81% West Shore 1st 48 3361.,.0s 10026 100-19 100-30 10130 10: 7+10 10622 108% 97% 102% 102% 103% 102 105% 1 110% 524 5253 110% 103'/. 103% 111 110% 40 67% 664 67% 95% 94% 08w, 836 88 88K’ INGTON STOCK EXCHANGE. Furnished by W. B. Hibbs & Co. Up to and Including Safurday, November 14, 1925. bates. BONDS. $5,000—Ana. & Pot. River R. R. 1st bs. 25,000—C. & P. Telephone 1st b 26,000—C. & P. Tel. of Va. bs. 262,000—Capital Traction 1st 6 49,000—Georgetown Gas Lt. 1st b 75,000—Pot. Elec. Power 1st 5s. 144,000—Pot. Elec. Power Con: 28,500—Pot. Elec. Power Gen. & Refi Gu 49,100—Pot. Elec. Power Ref. 7s 7,000—Wash., Balto. & Ana. 1st 5i 164,500—W ash. Gas Light Gen'l 5 288,700—Wash. Gas Light 6s. 363,000—Wash. Ry & Elec. Cons. 4s. 345,100—Wash. Ry & Elec. Gen. & Ref. 83. 15,000—Dist. of Col. Paper Mfg. 1st 6s. 3,000-—Pot. Joint Stock Land Bank 5s. 15,500—Riggs Realty (Long) bs 500—Southern Bldg. Co. 6%s. 300—Wash. Market Cold Stge. bs. 13,700—Wardman Park Hotel s. STOCKS. pital Tncuon —Washington 7,168%—Wash. Ry & Elec. ‘Comn 7,988—Wash. & Elec. Ptd 1,293—Potomac_Elec. Power Pfd 66—Capital National Bank. 651—Commercial National Ban] 11—District National Bank .. - 200 10—Farmers & Mechanics National mnk. 30034 —Federal-American National Bank 82—Liberty Natlonal Bank. 63—Metropolitan Natlonal Bank . 2,133—Riggs Natlonal Bank. econd National Bank. 265—Washington National Bank. 580—Amer. Security & Trust 246—Continental Trust ferchants Bank & Trust 23—National Savings & Trust 108—Union Trust 145—Washington Loan 17—Commerce & Savings ... 10—Washington Mechanics’ .. 458—Firemen’s Insurance.. 751—Columbia Title Insurance 102—Real Estute Title Insurance. 76—D. C. Paper Mfg. Ptd. ,327—Lanston Monotype 12—Merchants Tr. & Storag 2,162—Mergenthaler Linotype & W. Steamboat . 400—O0id Dutch Mkt. of Vi 30—Security Storage 90—Washington Market. 20—Yellow Cab Co. oy UNLISTED DEPAHT\!ENT. 366—Chapin-Sacks 8% Preferred. 4—Chapln-Sacks 7% preferred - 6—Chapin-Sacks common 50—Washington Base Ball Ci 5—Banking Trust & Mortgag 960—Citizens’ Saving Bank. 48—Departmental Bank 12—Munsey Trust —District Title Insurance..... 36—Washington Title Insurance. BONDS. $100—Army and Navy Club 5 . $5,000—Metropolitan Club 4148 Financial Highlights of Past Week Brought Out in Nutshell by Statistics Special Dispatch to The Star. NEW YORK, November 14.— This week. Last week. High. Low. High. Low. 134.85 13212 13549 133.51 This week. Last week. - 8447 . 10351 Stocks (average of 50 issues) Bonds (average of 40 issues) . Foreign bonds (average of 10 issues) . Federal reserve ratio .. Money rates in New York: Call Time This week. - 4%to5 et . 4% tob Month of Month of Oct., 1925, Sept., 1925, 4,109,183 3,717,297 97,528 3 Last-week. 415 to5 4% to5 Month of t., 1924, 3,525,270 4,907 Unfilled steel orders Pig_iron production Building permits Number of citles Amount Commerdial failures: Number Liabilities Revenue car loading All_commodities .. Grain and grain prmums . Coal and coke Forest products .. Miscellaneous products Ore Live stocl 90, 369 395 $374,866,097 $321,479,978 1,581 1,234 1,696 I”Q.ull 27,041,388 $36,008,804 Week of Oct 31, '25. Previous week. Year ago. 1,121,469 1,073,430 48,289 62.646 192,090 69,903 415,274 85,710 39.485 395 $411,145,184 FOREIGN EXCHANGE. NEW YORK November 14 ().— Foreign exchanges irregular. Quo- tations (In cents): Great Britian d mand, 484%: cables, 484 11-16; 60-day bills on banks, 480%. Fance, demand, 0035 MONEY TO LOAN ON REAL ESTATE GEO. W. LINKINS 1733 DeSaln Street Bel 73.80; Hol- 20;" Norway 2; Sweden, Denmark. .72; 9 Spain, 14. Z( Greece, Poland, 16.70; _Czechoslovakia, Jugoslavia, 1. Austria, mania, 47%; Argentina, 41.62; 14.87; Tokio, 42%; Shanghal, 78; Mo treal, 100 3-32. SERVICE Many people are using and abusing the word “ Let us show you what we call “service” in First Mortgage transactions. We do not boast of the number of years we have been in business, but we are proud of our numerous satisfied investors. We Aim to Please Phone, write or see Clarence L. O'Donnell, Mortgage Dept. WOOL MOVE SURPRISE. BOSTON, November 14 (Special.— Vews that Texas growers had decided to withhold their Fall clips until Spring was not unexpected here, al- though several Boston firms had sent buyers there. The Texans are hold- ing out for high prices. Still, dealers are inclined to believe some shipments will be sent North. The week in the market closed broad and active. S TURKEYS AT 32 CENTS. CHICAGO, November 14 UP).—Poul try alive, steady; recelpts, 14 cars: fowls, 16a23; springs, 22; turkeys, 3: roosters, 15; ducks, 20a22; geese, 17. Mgr. YOURSELF Two things you owe to your- self before investing accumu- WE FINANCE —all classes of income producing property Large Loans a Specialty Current int. rate and commission Higbie & Richardson, Inc. 816 15t1; St. N.W. “Suppose You Have a Fire Tonight” Wm. H. Kyle INSURANCE, ALL KINDS Koom 15, 1810 N.W. one MALY Foundation Conpcny Also Gives Out Details on Expansion. NEW YORK, November 14.— Foundation Company made another new high today to the accompaniment of favorable gossip regarding cur- rent business. I'urther details con- cerning Foundation Company’s new foreign subsidfary were given out. This branch of the business will 0p- erste in all parts of the world, out- slde of the Americas, the West In- dies, British Empire and insular pos- sessions of the United States. 'he authorized capital will be 160.- shares of no par class A stock and 160,000 .shares of no par class B stock, with equal voting rights. Trad- ing in the new stock of the foreign subsidiary will begin Monday. It was quoted around 40 bid in over-the- counter dealing: Bt 667 The greatest “Shock-Absorber” in the world 1s not attached to an automobile but is rather the confident owners! of an investment that is secure against the rocky place along the road of life No “High Spots” “Depressions” in_the “Market” can affect vour calm u that 1" Whe CASH DIVIDEND VOTED. DALLAS, Teéx., November 14 (). — Magnolla Petroleum Co. trustees have declared a cash dividend of 75 cents a share, payabje November 30 to s(oflkholderu of record November 24, C. Proctor, treasurer, announced neial purchase Our First Mortgage Estate Securities, you insure against “Shocks.” Join our family SATISFI You can with as little $10.00 We solicit_confidence or cor send literature free, upon request. MORTGAGE 2STMENT DEPA SHANNON & LUC 713, 715 and 717 14th St. N.W. Main 2345 PAB.IS BOURSE UNSTEADY. PARIS, November 14 (). Prices moved irregularly on the Bourse to y. Three per cent rentes, 46 francs 60 centimes. Exchange on London, 120 francs 39 centimes. Five per centimes. The dollar. 414 centim cent loan, francs 75 respon was quoted at 24 francs INV RTMENT QUICK LOANS On Your Real Estate Equity - $100 to $5, No Walting—Courteous Service District Loan Procurement Co. 1417 F St. N.W. M. 4138 I Open Evenings 7 te O Money “to Loan mlllwnlemi 2 Comiesions ™ Jouph eller Invest, Consult WELCH, Loan Specialist Established 1800 619, and 79, Real Estate Notes for Sale in Amounts from $250 up to $1,000 or more. il Consult WELCH, Realtor Yean Specialist 15th & N. Y. Ave. Main 4347 MAKES YOou A SAVINGS DEPOSITOR Dedicated To Public Service —over a century ago. this bank enjoys the con dence of all Wash'ngton, and is today ng the second and third generations in instances of original depositors. PAID ON SAVINGS ACCOUNTS Stocks WE BUY—SELL Bonds |‘T‘—‘l‘n—m.mu Bank. 15t Mte. Bonds Mtg. Bond-Guar. Miller Train ollatl, Man nuu-x Atar vs. rman Bonds ernatl. Finance MEHLMAN & CO. 1319 F St N.W. h. Main 8847 ser | Make the Oldest National Bank in the District of Columbia custodian of your Pay Day and other funds, and you'll save with safety and profit. Open Until 5:30 P.M. Tomorrow OFFICERS: mn\u 42 HAS, D SAGER Main 3 WE PAY MORE INTERF.ST ON SAVINGS ACCOUNTS Than Any Other National Bank in Washington Interest on DAILY Balances Come in and let us explain Trust Officer Cashier Cashier © Cashier Cashier Auditor Asst. DIRECTORS: il ARTHUR T. BRICE, | BROWNLEY Commercial Nat'l Bank 14th and G Streets CHARLES 3aConsEN Resources $17,000,000 fii ,r',, FIUKAT e PI‘I\\\ R. GOLDEN DONALDSON, PRESIDENT R iR HENEY ThoNarn National Metroplitan e Bank oo Capital, Surplus & Undivided Profits Over $1,800,000.00 15th St., Opposite U. S. Treasury . FAUST " ARt When You Need a Loan Think of WELCH, Loan Specialist Money to Loan At 51% and 6% - INTEREST Before Placinx or Renewl acinx gr Renewing Your Consult WELCH Realtor We Offer, Subject to Prior Sale and Change in Price A SOUND INVESTMENT A. H. Dondflfo. I!‘lc.v an E!tabushed Local Corporation $25,000.00 Issue of 8% Cumulative Preferred With a Bonus of $12,500 Common Stock lated capital: You should know beyond question that your principal will be safe, and that the in- come from it will be assured by the supervision of an ex- perienced organization. Quarter , ofa Century Without a Loss And you should know ‘how these requirements are met unconditionally by our 6% FIRST MORTGAGES B. F. SAUL CO. Main 2100 025 15th St. N.W. Authorized Cafirtahzanan o Cumulative Preferred Common Stock . .$30,000.00 70,000.00 No Funded Debt The Preferred Stock, par $10.00, is entitled to a guaranteed cumulative divi- dend of 8% per annum, payable scmi-annually, December 1st and June Ist The Common Stock has exclusive voting power. Redemption The Preferred Stock is redeemable any time after three years at $11.00 per share plus accrued dividends. Earnings Over a period of three years the company has increased its business approxi- mately 300%. The additional funds obtained through the sale of this issue will leave a large surplus available for dividends on the Common ‘Stock. The Common Stock, in our opinion, should pay better than 10% after the first year. Price $20.00 Per Unit 2 Shares 8% Cumulative Preferred, par value $10.00. 1 Share Common Stock, par value $10.00, with Voting Power. CIRCULAR UPON REQUEST SARGEN & COMPANY BOND,.BUILDING Stocks and Bonds MAIN % Washington, D. C. \ Unst Consists of 3367 4255 10391