Evening Star Newspaper, September 10, 1927, Page 25

FINANCIAL ANGES SLIGHT IN BOND DEALINGS Some Foreign Issues Higher. Lower Tendency in Most of Industrials. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, September 10.—Small changes were made in today's short session of the bond market. Most of them represented the effect of profit- taking or neglect of issues that have been more than usually active throughout the week. There were no outstanding features. In the foreign group the Polish and Itallan issues held Friday's gains. German city bonds moved up near their call prices. Belgians were fractionally higher. There was a slightly lower ten- dency in most of the standard indus- trials, but a fractional improvement in the speculative rails. U. 8. Government bonds were quiet. The new 33%s, which were bid up well above 101 prior to the Government financing, dropped back a little, This week's new issues amounted to less than $50,000,000 and were about equally divided between indus- trial, foreign and public utility bonds. ‘There are in prospect for early offer- ing about $150,000,000 bonds which ‘will come out in large units. Invest- ment bankers are well satisfied over the reception of offerings made since the first of the month. ittt BABSON FORECASTS BIG MARKET BREAK Btatistician Finds in U. S. “Excess of Everything Except Religion.” Advises Conservatism. By the Associated Press. WELLESLEY, Mass., September 10. [=—A year of possible readjustments 'was forecast for 1928 by Roger W. Babson, statistician, in opening his purteenth annual business conference fhere today. Mr. Babson declared that the con- dition of the business world today con- stituted an unprecedented paradox with declining interest rates coincid- ng with declining commodity prices. eretofore, he said, low interest has Inever been foliowed by a panic, but on the other hand, low commodity prices have always spelled the ab- ence of prosperity. The explanation, he found, was in the “excess in the Lnited States of leverything except religion.”” Business 'volume was good, but competition so severe and efficiency so low that profits 'were very small. A decisive reaction from “present excessive stock speculation™” was pre- dicted with the warning that “when he market really breaks, it will go off - from 40 to 50 point: He said he was advising clients to take a conservative position both in [business and investments. ‘“We are in a period when wise manufacturers, merchants and investors will get out of debt and store up financial, physi- hlxdnnd spiritual resources,” he con- IR AUGUST CAR LOADINGS OF S. A. L. SHOW GOOD GAIN Spegial Dispatch to The Star. BALTIMORE, Septéember 10.—The ovement of cotton and phosphates pn the lines of the Seaboard Air Line Raflway showed a big increase during August over the same month last rear and ‘was a chief factor in bring- g a good-sized improvement in car oadings. Intormauan received from the local pxecutive offices shows that car load- ngs- last month totaled 54,290 cars, ompared with 49,653 in August last jear, an increase of 4,637 cars, or 9.3 per cent. Loadings of cotton gained 66 per pent, phosphates 44 per cent and gen- ral merchandise 13 per cent. The bnly classification of Trelght to show decrease was fruit and vegetabls The Seaboard has asked the Inter. te Commerce Commission for au- ority to acquire control of the 20- ile Naples, Seaboard and Gulf Rail- ay of Florida by purchase of its bapital stock and to issue $1,184,000 bt first and consolidated 6 per cent onds in connection with the pur- hase of the Naples property. HICAGO LIVE STOCK MARKET CHICAGO, September 10 (United Btates Department of Agriculture).— logs—Receipts, 2,500 head; unevenly eady to 10 cents higher than yes- erday's average; sorted 210 pounds 0 220 pounds, 11.75a11.80; few 150 to 70 pounds, 11.10a11.40; practically no pales for slaughter pigs; most 240 to 80 pounds butchers, 11.10a11.40; bulk acking sows, 9.35a9.60; sorted utcher sows upward to 10.00; ex- freme heavies downward to 9.00; stimated holdover, 3,000 head. Cattle—Receipts, 400 head; com- bared week ago grain fed steers and yearlings 25 cents to 50 cents higher; yestern and’ native grassers, includ- ng warmed low qualities natives, 25 ents to 40 cents lower; extreme top ong yearlings, 15.25; heavies, 15.15; ight yearlings, 14.90; mixed )earflngs, 4.35; all new high prices for season; ost grain fed steers, 12.75a14.30; krass \Westerns and natives, 9.00a §0.50; two loads of 1,380-pound Mon- nas, 12,00; most grass cows, 7.50 jownward; grass heifers, 8.90 down- jvard. Sheep—Receipts, 2,000 head; odd ots of natives about steady; fat ange lambs closing 50 cents to 75 cents lower; natives, 75 cents to §1 ower; sheep steady to strong; feeding ambs weak; bulk prices, fat Western ambs, 1 1 natives, 12.25a h2.50; culls, 8. ings, 9.00a10.00; ceding ]amhs, 12 FOREIGN EXCHANGE asions furnished by W. B. Hibbs & Co. g ominal Sellink checks ay. Vienna, crown fudavest, CEO T openbager, crow: O0t ) S cxowin FEDERAL LAND BANK BONDS. lQuOlEd by Alex. Brown & Sons. Clunlm ) Avnrox Rete—Maturity Asked. el S5 reaunses ot o b bR s FREEE 0% e e e e Ty 3 TREASURY CEB.TIFICATES (Reported by J. & W. Seux_n_,-cnbco ) po—Maturit s Senf ;“15’ 1927. UNITED (Sales_are Lib3%s... Lib2d4%s. 45 Lib3d4%s. 12 Lib 4th 4%s 62 US3%s... 214 US 451944 109 US4yuss2. 24 FOR Argentine 5s... Argentine 65 Ju 59, Argentine 6s Oct59 Argentine 63 A. Australian 5 Austria 7s Belgium 6s. Belgium 6% Belgium 7s. .. Belgium 7s ct. Belgium 71 Bolivia 8s. Brazil 7s Brazil 8s . Bremen, State. Canada 5s 1931 Canada 5s 195 Chile 8s 1941 Chile 8s 1946 Copenhagen 51s.. Cuba 5%s.... Czecho 7%s rcts Czecho 8s 1951 Czecho 8 5. Danish Muni, Danish Munie §s B Finland s f 6s 45 Finland 7s . Framerican 7%s. French 7s. French 7 French 8s. German 7s German Agr Bnl Ger Gen Elec 7s... Holland-Amer 6s. . Hungary 7%s. TRy 8.... .. Italy Pub 7s. Japanese 6%s..... Jergens U M 6s 47. Lyon 6s. .. Marseille 6s. Netherlands 6s 54. Nord 6%s. Norway 5%s. Norway 6s 1943. Norway 6s 1952 Ortent Dev deb 6: Porto Alegre 8s. Prague i %s. Queensland 7s. Rhinelbe Un 7s.... Riode Jan 8s 1946. Serbs Crot §10 8s. . Soissons 6s. Sweden 5% Sweden 6s. Swiss 515 1946. Swiss Confed 8s... Toho Elec Pow 7s. Toki0 55....... Utd Kingm 6348 37 Yokohama Ss...... MISCELL. Am AgriChem 7%s Am Smit & R 1st 58 Am Sugar ref 6s AmT&Tel tr AmT&Tsf5 Am Water Wks 5. Anaconda 1st 6s. Anaconda cvdb 7s. Armour&Co 4% 39 Armour Del 5%s. Atlantic Refin 5s.. Bell Tel Pa 5s B... Beth Steel rf 5s.... Beth Steel 5%853. Beth Steel 6s. Bush T Bldg 5s 0. Chile Copper Con Coal Md 1st 5s ConGas N Y 5%s.. Consumers Pow §s. Goodyear 5s rets. Goodyear 8s 1941.. Int Tel&Teleg UAI 1 KanG & El 6s52. Laclede G 6%s 52.. Liggett & Myers 7s Midvale Steel 5s... N Y Edison 6%s... North Am Edis 5s. Nor Ohlo T & L 6s. Public Service 6s. . PSer Gas5%s 64.. Sinclalr O11 6s Sin Crude Oil Sin Pipe Line 5 Skelly Oll 5%s.... Standard Ol N J 58 Tenn Elec Pow 6s.. Toledo Edn 1st 7. United Drug 6s. ... U'S Rub 1strf 6s.. U S Steel st 58 Utah Pow & Lt Warner Sug 7s 29. Warner Sug 7s 41. West Elec 5s...... Westinghouse 5s Willys-Ov 6%s 3 Wilson & Co 1st 6s. Youngstn S&T 6s.. Atchlson gen 4s. .. Atlantic C Lcl 4s. Atian CL 4%s 64. B &0 Gold ss. B&Ocv4%s. B&Oref 5s. B &0 552000 D. B&O 1st5sct. B&OGs. B&O PLI Bklyn Manhat 6s.., Buft R & Pitt 4335, Can Nat 4%s54... Canad North Ts. Canad Pac deb 4s. Can Pac 4%s 46 Cent Pac 15t 58 90. . Chesa Corp 58 wl. . Ches & O cv415s.. CB&Q4%s17B. Chi B & Q 1st rt 55, Chi& E 111 gn 55 51 Chi Gt W 45 69.... C\:&srcvw.sx"ct- ChiTHE&S E bs. Chi T H inc 63 60. Chi Un Sta 4%s. . Chi Union Sta 5s 44 Chi& W Ind cn 4s. . C& W 15%s 6 Clev Term 58. Clev Term 5%s Cuba R R 5s. Cuba R R 7%s. Del & Hud cv 55 35, Den & Rio G en D& Rio G imp 5s. D Rio G West 5s... Erie gen 4s. . Erieconv4sA. Erieconv 4s B. Erleconv 4s D. Erlecvt5s 67 w Erie & Jersey 6s. Sales. 100 18 100 17 1015 104 2 105 23 105 20 108 23 108 22 11330 11324 . 58 STATES. n $1.000.) High. Low. 10121 10115 Close. 10121 100 17 1015 103 31 10523 108 23 11324 1012 103 31 EIGN. Sales. High. Low. Close. 1 91 91 91 2 99% 6 99\! 29 100 73 98 4 103 20 99% 46 105 11 107% 17 105'% 2 114% 21 103% 100 10 36 6 9915 99% 9% 9774 103 991 104t 107 107% 105 105% 114% 114% 103% 103% v 99% v 93 9T 99% 98 103 99% 105 107 103% 101% 105 102% 101% 109% 109% 101 102% 105% 108 107% 111% 111% 103'% 104% 107 96 6 1001 105 2 107% 115% 1067 10 103% 103'% 101% 101% 105% 105'% 1024 102% 101% 1013% 1091 109% 1093 109% 101 101 102 102 105% 105% 107% 107% 107% 107% 111% 111% 111% 111% 103 103 104% 104% 107 9614 100% 105 105 1074% 107% 115 115 110% 111 106% 107 101% 101% 104% 1047% | El 964% 95% 101% 101% 103% 103% 100 100 997% 99% 103 103% 100% 100% 102 102 4 102% 102% | 102'% 102% 102% 96% 96% 95% 6% 96% 96% 103% 102% 103 102% 102% 102% 104 104 84 84 9915 99% 105 105 104% 104'% 112% 112% 114% 114% 104% 104% 1057% 105% 9% 91% 107% 107% 104% 104% 100% 100% 98% 99% 104%; 104% 104% 104% 104% 104% 113% 114 98% 98% TT% TT% 105% 105% 15 95 95% ANEOUS. 6 103% 103'% 103% : 3 102% 102% 102% 104% 104% 104% 100 99% 100 104% 104% 104% 99% 99% 99% 104% 104% 104% 2 109% 109 109 90% 90% 90% 90 89% 89% 101% 101% 101% 104% 104% 104% 102% 102'% 102% 102 101% 102 104% 104% 104% 102% 102% 102% 95% 95 95% 85% 85 85% 106% 108% 106% 104% 104% 104% 95% 95% 95% 6T 67% 67% 86% 86% 86% 95% 95% 95% 106% 106% 106% 110 110 110 94% 94% 94% 120% 120% 120% 102% 102'% 102% 98% 98y 98% 105 105 105 99% 99% 99% 105 104% 104% 104% 104% 104% 94% 94% 94% 106% 106% 106% 104% 104% 104% 123% 123% 123% 100% 100 100 116 116 116 109% 109% 109% 100% 100 100 98% OB% 98% 103% 103% 103% 103% 103% 103% 104% 104% 104% 102% 102% 102% 103% 103% 1033 104 104 104 97 96% 96% 106% 106% 106% 106 106 106 100% 100% 100% 100% 100% 100% 93% 93% 93% 95% 95% 95% 103% 103% 103% 107% 107% 107% 108% 108% 108% 107% 107% 107% 944 94. 94 108% 108% 108% 100% 100% 100% 91 91 91 107% 107% 107% 103% 103% 103% 103% 103% 103% 102% 102% 102% 101% 101% 101% 104% 104% 104% @ e LT PT CL TSy =T P TR ) - 42 83 GO [OTOre PP o 3 10 1 o ROANNRHG HOAGHN RN HHARAD WRaO RS mmesn o G N 17 RAILROAD. 70 96% 96% 96'“. 1 92% 92% 5 100% 100% 100% 6 964 95% 96% 8 100 99% 100 5 104% 104 104 2 104% 104% 104% 3 108 107% 107% 7103 103 103 14 95% 95% 95% 13 97% 97% 9% 4 98% 9T% 98 15 97% 97w 9% 5 114% 114% 114% 4 B6% 864 86% 1 98% 98% 98% 1104 104 104 42 98% 98% 98% 104 101 100% 101 19 100% 100% 100% 2 107% 107% 107% 90% 90% 12% 67% 68 66% 83 94% 99% 944 1101 101 5104 104 104 3 89% 89% B89y 1 105% 105% 105% 5 105% 105% 105% 5 109% 109% 109% 6 9TH 9T% 9T% 1 109% 109% 109% 10 137% 137 137 12 92% 92% 92% 1 100% 100% 100% 99% 99% | | Pennsyl 5s 64. | Rio G West cl 4s, THE EVENIN ON NEW YORK BONDS STOCK EXCHANGE I Received by Private Wire Direct to The Star Office. Sales. High. Low 97% 9TH 114% 114% 99% 987% 106% 106% 114% 114% 100% 100% 92% 92 90% 90% um‘. Close. 97 114% 99%; 106% 114% 100% 92% 90% FlaEC5s74. Grand Trunk 7s. Gt Nor 4%8 76 D.. Great North 6s. Gr Nor gen 7s. . Hud & Man ref 5s. Hud & Man aj 5s.. 111 Cent 48 53. 111 Cent 4% 66. Int Rapid Tran 58 Int Rap Tr 5s stpd. Int Rapid Tran 6s. . Int Rap Tran 7s Int RysC A 58 72. Int RysC Am 6s 4 Kan City Ft 8 4s. Kan City Term ds.. Lake Shore 4s 28. . Lehigh Val 5s 2003, Louis&Nash uni 4s Louis & Nash 5s B. Louis & Nash 51%s. 2. Market St 7s 40.... M1l El Ry & L 58 61 St P & SSM cn 4s MSt&SSM5s38gtd. . M St P & SSM 6%s. MK & T 1st 4s MK &Tadj5s.... M K&T prIn 6sA.. MK&T6sC Mo Pacific gen 4s.. Mo Pac5s F 77.. Nassau E Ry 4s57. Y Cen gen 3%s.. Y Cent 4s 98 Y Cent deb 4s. 2 Y Centdeb6s... 3 YC & St L db 4s.. 150 NYChI&StL 51634140 NYChi&StL 5 New Hav deb 4s 56. New Hav cd 6s N Y Rys6sA6 Nor & S gen 5s 54. Northern Pac 4s Ore Short L rfs 4 Ore Wash 1st 48 Pennsylgen4%s 103% 78% 100 56 Port RL&P 7138 46 RIArk &L 4%s. St L IM&S 4s 29 StLIM&SR&G1s |StL&SFpld4sA. S L&SFprinbs. t L&SF5%sD. tL &S Fadjés sz L &S F inc 6s. StL S W con 4s 32. Seaboard A L 4s sts Seab A L ref 4s. Seab A L adj 5s Seab A L con 6; SB All Fla 6s 35B.. Sou Pac 4s 29... Sou Pacific ref 4s. . Sou Ry gen 4s. . Sou Ry Con 5s 94.. Southern Ry 6%s.. Third Av ref 4s 60. Third Ave adj 5s. Wabash 1st 5s Wabash 5s 76 B. Wabash 5%s875... West Maryland 4s. 1 West Shore 4s 2361 REDISCOUNT CUT POWER AT ISSUE Action of Board on Chicago Bank Stirs Senator Glass. Sargent’s Ruling Asked. LT O L T 1 TUVOY PO ] 2 100% 9614 894, 109% 124% 69 617% 104% 101% 105% 86% 1 89% 104% 101% 105% 85% 89% 32 3 5 2 1 By the Associated Press. Under what economic circumstances the Federal Reserve Board has the power to fix rediscount rates at Fed- eral Reserve Banks appears likely to develop into an issue upon which At- torney General Sargent is likely to be asked to render an opinion and Con- gress may be called upon to define by legislation. The Board recently established a re- discount rate of three and one-half per cent for the Chicago Federal Reserve Bank in place of a four per cent rate. The action was understood to have been based on the desire of the Board to institute the rate reduction in the Chicago district, which has been adopt- ed by most of the Federal Reserve Banks of the country. Disagreement Said to Result. However, from several sources dis- agreement to the Board's order is in- dicated to have resulted, including the disclosures that the Board itself was not unanimous in its decision and that Senator Carter Glass of Virginia, a Democrat ot the Senate Banking Com- mittee and co-author of the Federal Reserve Act, had protested against the reduction as “arbitrary” and not within the meaning of the act. The Virginia Senator in a statement later at his Lynchburg, Va., home, ex- pressed the view that Congress should promptly enact legislation on the Board’s rights, “which nobody will misinterpret.” . The executive committee of the Chicago bank has instructed its attor- ney to request the Attorney General to render an opinion on the right of the board to establish the reduction. At the tirge of the reduction in the other banks, the Chicago bank'’s direc- tors were said to have declined to make the reduction. The board’s vice governor, Edmund Platt, revealed that there was a lack of unanimity in the reduction order, saying he had opposed the action and at the same time said Senator Glass had visited a number of -the board's members and voiced the opinion that the reduction was in contravention to the meaning of the Federal Reserve act. Doubt About Court Test. Mr. Platt said Senator Glass was advised then that the board had the power for such action under a ruling by the Attorney General in 1919. The Virginia Senator replied that he had never heard of the ruling, according to Mr. Platt, and doubted if it could stand a court test. Senator Glass in his statement said it was néver the intention of Congress in the act that the authority for rate reduction by the board should be used except under exceptional circum- stances such as maintaining a “danger- ously low” rate or a rate so high as to hinder commerce. The action in the present reduction, he added, “is and was intended to be a long stride in the direction of making the Federal Reserve Board a central bank with the Reserve Banks as mere branches.” Secretary Mellon, ex-officio chairman of the board, aid he had not conferred with the board nor with the Chicago bank's representati: on the situa- tion. ———— GERMAN BONDS AND STOCKS. By Special Leased Wire to The Star. NEW YORK, Sentember 10— (Quoted in dollare Illllllflll marks.) Asiced. Ger Gt (w ') Be 1014-18. '«noo ] Hamburg 4338 1019 000 8000 (Quoted_in dollars Ger Gen Elec 4 %3 pre-war Elec 4148 1019. H kN Hamburg-Amer Line 4 North German Lioyd 4 North German flovd Prussian Consols' 3% v B 1921, 7 85 B4% B4% 3 79% T9% 9% 1 85% B85% 85% 2 85% 85% 85% 44 120% 120 120 95% 95 95 1 114% i 114% Berliner Handel Dresdnet Bank 1300 Airtrian A“E G (Gen Broc 1.00 STAR, WASHI TRADING LISTLESS ON GURB EXCHANGE Prices Irregular—Some Utili- ties in Demand, but Most of Market Is Neglected. 3Y WILLIAM F. HEFFERNAN. I Dispatch to The Star. September 10.—Prices fluctuated irregula the close of the week on the Curb Exchange. At intervals trading lapsed into dullness with the stock recording instrument \most at o standstill. This was in direct contrast to the activity and strength prevalent on previous days of the week. It was a typical week end affair, with the bulk of the opera- tions representing the evening up of account American Public Utilities, American Light & Traction, Electric Investors, and Southeastern Power continued in demand, but most others were neglected. Bancitaly shares went to 99, the highest since the stock divi- nd came off the prices. Buying was based on expectations of another spe- al distribution. Celluloid Co. new preferred, re- sponding to prospects of increased earnings as a resuit of the recent con- solidation, went to a new top above S5 Profit taking having been com- pleted in Gillette Safety Razor, at least for the time being, the price ted forward again, but the demand was not urgent. The oils, motors and rails fluctuated over a comparatively narrow range and little interest was taken in the proceedings elsewhere. GRAPE BRICK FIRM OFFICIAL ARRESTED Company Sold Cubes With “Warn- ing” That They Would Fer- ment in Water. By the Associated Press. GO, September 10.—Bricks weighing a pound and a half apiece and selling at a price of $2 each throughout the country aroused the osity of Federal authoritles and sulted in an investigation which culminated in indictments inst officials of the Vino Sano pe Brick Co. charging conspiracy to violate the prohibition law. Investigation revealed that the bricks Were made of compressed grapes. On each brick was a print- ed caution that if water should be added to the contents of the brick the substance would ferment after th days and become alcoholic. While the el wi in the form of a caution it also contained recipes for the transformation of the brick into various wines through the addi- tion of flavors. Simon Exeter, local agent of the brick company, was arrested here yesterday on a bench warrant for- warded here from San Francisco, where Exeter and other officials of the company were indicted. s S SCHOOLS KEPT CLOSED. Haverhill, Mass., Infantile Paraly- sis Cases Show Increase. HAVERHILL, Mass., September 10 (#).—With three new cases of infan- tile paralysis reported in the past 24 hours, the board of health has ordered schools to remain closed until Septem- ber 24, canceled foot ball games for two weeks and barred minors from public gatherings. Haverhill has had 40 of the 307 cases reported in the State since January 1. Massachusetts had only 245 cases reported in all of 1926. Seven have died here this year. BURROUGHS EARNINGS UP. NEW YORK, September 10 (P).— Burroughs Adding Machine Co. earned §3.89 a share on 800,000 shares of stock in the first half of 1927, against $3.99 a share on 600,000 shares in the first half of 1926, COAL SHIPMENTS DOWN. NEW YORK, September 10 ().— Shipments of bituminous coal over the Reading system in July were 1,346,479 tons against 1,476,238 in July, last year. . FAILURES INCREASE. NEW YORK, September 10 (P).— Commercial failures in the United States this week are put at 340 by R. G. Dun & Co. 41 more than a year ago. CUSTOMER STOCK SALES. NEW YORK, September 10 (#).— Sales of stock to customers, employes and other individuals in the com- munities served by central-station companies in June amounted to $20,- 000,000 and consisted of 361,000 shares, sold in 28,800 transactions. This estimate is based on data com- piled by Electrical World for com- panies serving about 85 per cent of the total number of customers.on the lines of all companies making a pracy tice of selling stock locally. Cus- tomer-ownership stock sales by cen- tral-station companies for the first halt of 1927 totaled $139,600,000. SILVER QBGOTATIONS. NEW YORK, September 10 (A).— Bar silver, 55%; Mexican dollars, 41%. POTATO MARKET STEADY. CHICAGO, September 10 ().—Pota- toes—Receipts, 93 cars; on track, 178; total United States shipments, 810 cars; trading slow; market about steady; Wisconsin sacked Irish cob- blers, 1.80a2.15, according to quality; Minnesota_sacked round whites, 1.50 a1.90; sacked sandland Ohios, 1.35a 1.45; sacked Red Rivers Ohios, 1.55a 1.65; Idaho sacked rurals, 1.90a2.00. Have You Been Stung Yet? Some men have to get stung good and hard before they learn to be cau- tlous in making investments, Before you invest—investigate. RUBBER DECLINES, NEW YORK, September 10 (Spe- clal)—Crude rubber, smoked ribbed sheets, declined a quarter of a cent at today’s noon quotation of 33%. This compared with 35% a month ago and 40 a year ago. = .‘!-IEIGN EXCHANGE. NEW YORK, September 10 (#).— Foreign exchanges, (in cents).—Great Britain, demand, 485 18-16; cables, 486 8-16; 60-day bills on banks, 481 15-16. France, demand, 3.01%; cables, 3 Italy, demand, cables, 5.44, nd—Belgium, 13.91%: Ger- 23.77%: Holland, 04%; Nor- 26.34%; Sewden, 26.85; Denmark, 7 Switzerland, lll.l!%; Spain, 16.861%; Greece, 1.82%; Poland, 11.20; Czechoslovakia, 2.96; Juxoulnvln. 1.76; Austria, 14.08; Rumania, .61%; Ar- Kemiml. 42.75; Brazil, 11.81%; Toklo, 01471 hanghai, 61. 37"/., Munheul heavy. Quotations | M ATURDAY, SEPTEMBER_10. 1927, Following is the list of bonds and} stocks traded in on the New York Curb Market today: Sales in INDUSTRIALS. hundreds. High 8 Alb Pick B A pfd 1 Al\mklu u ol 1 Bancitaly Corp . 1 Bohn Alum K ] f 3 Geliutoid c«", "ot “s 4 Cellulvid _Co 13 Celotex 3 Co., 3 Gleason Prod 13 Glen Alden Coal. 6 Gyt 8§ G o 3 Grand__Store 2 Jull Printing 2 Lackawan_ See iLand Co Fla. 1 Len D Loh Val ¢ s 6 Mavis Bottling. | 3 Tron 3 Mot Rlunb B 0 5450 Strs b Tl 6 i 23 1 Pow Secur’ Corn ’;. me & Lamb C BY GEORGE T. HUGHES. A Study in Bond Values—IIIL Having in the two articles imme- diately preceding discussed the prop- erty security for the bonds of the In- ternational Mercantile Marine Co. as an {llustration of investment analysis in general, we now come to the mat- ter of earning power. No matter how wide the margin between the amount of the bonds outstanding and the value of the property, the investment is not sound if net income is insufficient to pay interest over any considerable period. ‘When we come to look at the Ma- rine company’s 1926 income account we are confronted by the fact of a def- icit after interest on the bonds. Simi- lar deficits were reported for the pre- ceding four years. This looks dis-| couraging and the question arises how it has been possible to pay interest which was not earned. Closer exam- ination, however, reveals that the def- icit existed only after heavy charges had been made for depreciation on the company’s steamships. In the 1926 statement net income was given as $5,693,718, and depreciation of $5, 040,415 was charged off. Now depreciation is a very real item, but it does not affect,cash hold- ings. It is important to bondholders because it shows to what extent the property value on which their bonds are_ secured is becoming smaller, but it does not impair the ability of the company to pay interest. We have al- ready seen in discussing the financial condition of this company that even after these heavy depreciation charges and using the most conservative esti- mates, there is property value back of the bonds at least double the amount outstanding. For the immediate situation we look at the balance sheet and see the re. lation between the current assets and the current liabilities. In the Marine 1926 statement the ratio of the former to the latter is approximately two to one. Interest on the 6 per cent bonds is only a little over $2,000,000 and among the current assets in the bal- ance sheet the cash item is $7.971. 527 and that of marketable securities is $18,886,504, against which total cur- rent liabilities are only $17,311,281. On this showing interest is just as se- cure as property value was found to be in our examination into that point. Summing it up then as far as this analysis can take us, the bonds con- A B are employed in the rating of other securities, This particular case has been selected simply to illustrate the means used. DIVIDENDS. Pe. Com) Rate, riod Bank ot 1. %8 B EI $6 bt sf‘flo irmeny B S C.NS }I‘ R D Do prigr Hen Goen Cola Inté of, Am ‘Do Pay- Hdrs. of avle. | Record, Oct. ) U [y s o1 pt i uy a Ind pupn'r’uuu ¢ Jooks TnpIP&LY Ta bt 81 P nummh/rllr- ‘m i V... Do part pf. Tllix):mr‘: Det x »m——nnm:»—mnm-:m-»-:a::-—..-.—..u»u»—:.aam—n»m—- Yelw Tr & Sales in hundreds. Sales in hundreds. Sales in thousands. Am. Tol. & Tel. Amertcan Srrona 0o, e 10205 10 Anaconda Copper 6s 1929 Canad. Na Ganad, Nor. | S QR &hi- Conitnental G, B St iencral Petroleum C. bs Goodvear T. & l‘ln cerned are sound. Similar methods | M. Wheeling Steel C. NEW YORK CURB MARKET Received by Private Wire Direct to The Star Office Swed Am Inv pld Timken e 1 Tung Sol Lamp., 4 Tung_Sol Lamp A El Coal vte: Rl Slev vis 131 MINING STOCKS. 50 Am Con M&M Lt .04 S M sois Hawthorne Mason Val 1 Newmont | i SR mRn S EE S s b Poas B WBu INDEPENDENT OIL STOCKS. 1Yyk Alas 100 Am Con_ Oilfids,, 23 Leonard 4 \lamhl Sy 9 Nat Fuel Gas 1 Pandem _ Oil & Pantepec Oil 9 Reiter-Foster 0il 18alt Ck Pro 2 Venezuelan Pet. 7 2o SRS SIS © o s Sales in STANDARD OIL ISSUES. units. 400 Cont'l il n v 50 Cumberland P} 200 500 EREREZLESESS SER FFSEEE BreBaZonsocon Sales in thousands. 24 Allis Chalmers 53 067 Seating 6s. 104 % 16 Am Thread ¢ G 1015 101 Ark P 063 Am?u B0 % A mu/, Cons G B s A. Cons Pub 6%s. . { cone T fee 6 Cudahy 5% Dot Cla ae L ”nl‘l Intl U" ... &R B ETrd %z B, 07 4, l()u’ 3 Gatineau Pow’ b 1 Gatineau Pow s 1 5Gen Tnvest 5s A1 )7 Bihs '73 105 s Bet 511a b3 Forto Ric Tob 03 1) 1 Potomac Ed bs E _97 1Pure Ol Gl%s A 103 Pure Oil Co 5% H8 11 Rem Ran SiasA 90 5 Servel Del Gs... Shawsheen 55 100 inclair Con 6s D _99 der Pack 08 1071 A% s, s 08 8. 10010 il 78 11374 mer “ouint 53 93¢ Varner Quin West Ch 538 37 101% FOREIGN BONDS. § Adriatic pElee ik 78 4 Bank o 4 Copenhagen Prus 6 3 om0 BT 8 Leonh Tie ¢ l/.sn 7 Lombard EI Au a 1 Mor Bic Chile Gy 2 Muni Medellin 78 10 Perelli 7s 14 Peru 7s .. 10 Rio Grande 7s 9 2 Rlo Grande 7 107 6 Russ Govt B *Ex-dividend. SHORT-TERM SECURITIES. (Reported by J. & W, s=nxmun &Co.) ~—~—Close. m‘c !/2 10 ociated Oil s 1935 timore & Ohio 63 Batavian Pet Cor. 4% 1943 of Canada, B 1 -4 . M 5 nlLPny 038 bE B i 027 . R Co. 75 1930, AFPEEAEF, Union 0il of Cnlu Union l nited L L infer 795 Selting ('n’h 5%s 1048 New York Stock and Bond Averages. SATURDAY, SEPTEMBER 10. S| 5 STOCKS. T I 815,700 shares. 13‘-':.'-;1" astrialy averaged 178.27; et 8. = m':'h mr{ 178.74; low, 111.23, irouds averaged 117.25: . 140.56; low, 125.58. BONDS. solilaloghond sales (oar value). ‘fen ' first grade ralls averaged b 4 -'o':n > ralls averaged 97.653 n"’r}u Gubile utllities averaged 07.033 ‘tén industrials averaged 101.66; " average, 98.11; net Faln, Combired _average month ago, 0701} year axo, 95,25, e o o, FINANCIAT.® E3 Crompt Action First Mortgage Loans ’ Lowest ‘Hates of Interost and Jon Thomas J. Fisher & Company. Inc Moncy to Loan -u; 4 0y st REAL ESTATE LOANS 5, % FRED T. NESBIT 1010 Vermont Ave Main Mortgage Monev Loaned at Low Interest Rates Tyle:& R;ltl;:;ford tt Wewels 1 Main 475 Lon ¢ rreaods 1520 K Stree( The New York Life Insurance Company Offers to Make First Mortgage Loans On Improved Real Estate in the District of Colun.bia and Nearby Suburbs in Montdomery County, Md., for 3, 5 or 10 year terms on your 51 Office Building 2 0 Business Property Apply RanpALL H. HAGNER &. CoMPANY MORTGAGE LOAN CORRESPONDENT 1321 Connecticut Ave. Telephone Main 9700 Apartment Home When You Apply Here for a Mortgage Loan —the answer is prompt—the amount is right— the interest rate is low—the fee is moderate. We are prepared to make loans on Washington realty in any amount. Immediate Answers on Applications B. F. SAUL CO. Main 2100 925 15th St. NW Low Interest Rates and Commission Over a Third of a Century's Satisfaction— —to property owners in knowing —w hen their property is given the benefit of our specializéd experience in manage- ment—that we will ac- count to them regularly and in detail concerning all items having to do with their property’s tenanting, upkeep and the like. Consultation imposes no obligation. B. F. SAUL CO. Main 2100 925 15th St. N.W. APPLICATIONS INVITED for LOANS on IMPROVED PROPERTY Located in the District of Columbia and adjacent Suburbs in Montgom- ery and Prince Georges Counties, Md SL 2 J0 INTEREST Apply to H. L. RUST COMPANY LOAN CORRESPONDENT Ghe PRUDENTIAL INSURANCE COMPANY of AMERICA 1001 15th Street N.W. Main 6888 1t Is Your Pleasure —Twice A Year HERE'S a certain satisfaction to open up an envelope and find in it an interest check that your money has earned for you, It's a satisfaction you can’t get from a pay-envelope or a salary- check, for you are receiving income from money which is silently working for you and increasing your wages without any effort or risk on your part. If you own First Mortgage Notes pur- chased through Swartzell, Rheem & Hen- sey Company it is your pleasure to re- ceive your interest checks regularly twice a year. These notes are available in denomina- tions of $100, $200, $500 and $1,000. Their yield is now 6%—and in fifty-eight years no investor has ever suffered loss. Swartzell, Rheem & Henséy Co. mfifl%tw 58 Years Without Loss to An Investor