Evening Star Newspaper, January 13, 1930, Page 13

FINANCIAL. [ ew v BONDS o o FOREIGN BOND LIST SHOWS STRENGTH Irregularity in Other Groups ¥ "Ascribed to Volume of New Offgrings. BY F, H. RICHARDSON, Bpecial Dispatch to The Star, NEW YORK, January 13.—The bond market had to absorb today the big- gest total of new issues on a single day it has seen for many months. As a re- sult prices were irregular, much of the selling being blamed on liquidation by those taking advantage of the relative~ ly low prices of new offerings. , At the same time international de- velopments of & bullish nature brought strength to the foreign list. The $150,000,000 American Tele- phone & Telegraph issue of 5 per cents was offered at 99';, the books were closed a short time afterwards with a heavy oversubscription, and the bond, admitted to trading on a when-issued basis, opened at 100% and went to 100%. The balance of the budget of new. issues -included $29,050,000 Ten- nessee . Highway Bridge and renewal 4%.s. and 4%s, $1,545,000 Mount Ver- non, N, Y., 4s and 4'¢s, and $6.000,000 Associated Telephone Utilities Co. 5% per cent convertibles. High-grade bonds were quieter, but advances were made by Atchison gen- eral 4s, Canadian National 5s, Northern Pacific 4s, Standard Oil of New York .4%s, Columbia Gas 5s and Utilities Power. & Light 5158, Fractional de- clines were shown by Baltimore & Ohio first 4s, Canadian Pacific 4s, Pennsyl- vania general 4145, American Telephone 51gs, Duquesne Light 41 and Philadel- phis Co.5s. United States Government obligations were dull and slightly lower. Corvertibles were strong. Atchison 448 advanced 3 polng. Listless trading in second-grade rails caused small losses in St. Paul adjust- ments, Erie general lien 4s, Erie refund- ing.5s, Florida East Coast 5s, Missouri- Pacific general 4s and Florida East Coast 415s, which were down 2 points to & new low level. Certain 51gs, Pathe 7s, Anglo- Chilean 7s and Armour of Delaware 5148 made headway in the specula- tive list. Hudson Coal 5s and Inter- national Paper 5s both dropped 114 points. Once again French bonds led the forélgn list. ‘These are now all at thefr highest levels since the close of 1928: French govérnment 7s and 7is, Bordeaux, 6s, Lyonds 6s, Soissons 6s, Seige 7s, Nord Railways 614s and Paris- Lyohs-Mediterranean Railways 6s. rman issues were strong with the announcement of the commencement of active negotiations here for new financing for the German railways and industrial groups. United Steel Works “A" 61is were most active. South Americans were firm, Uruguay 6s mak- ing a small advance in the face of re- ports of renewed revolts in that t = Washington Stock Exchange SALES. Capital Traction Co.—10 at 821, 3 at 8214, 10 at 823;. Potomac Electric 515% pfd.—5 at 107. National Bank—10 at 515, 10 at 515, 10 at 515. nthaler Linotype—5 at 106, 10 at P IN;%. 10 at 10615, ot les Drug Stores .—10 at 104, 5 e:? 104%. i i AFTER CALL. Capital Traction 55—8$1,000 at 92%, $1,000. at 9215, $1,000 at 9215, Drug gwrz:. 024 ‘llooss l-lhmn as = 0 $500 at 101. - Bid and Asked Prices. 104, at 101, C. & P. Tel. of Va. Capital Traction R. City & Suburban 5s. o UNITED STATES. (Sales are in $1,000.) Sales. High. Low. Close. 13 9914 9911 9911 25 100 24 10016 100 16 24 1015 1012 1013 1 9917 9917 9917 4 9920 9920 9920 36 1046 1042 1042 45 10710 1072 1072 33 1116 1112 1112 FOREIGN. Sales. High. Low. Close. 87 87 87 0% 9% 7% 97% 97% 844 Argentine8s...... Argentine 5%s 62.. 4 Argentine 6sJu 69.. 6 Argentine 6sOct 69 8 Argentine 6s A. 6 Argentine 65 B. 5 4 7 7 90% 9734 978 9% 97% 841y 92% 92% 93 9214 93 1 104% 104% 104% 94 94N 96 96 5 101% 101% 101% 4106 106 106 23 110% 110 110% 25 107% 107% 107% 5 115% 116% 115% 12 110% 110 110% 7 4 15 T5% 35 9213 92 92 11 103 102% 108 27 76 5% 176 14 5% 5% 83% 83 97% 97% 99 99 99 6 103% 103% 103% 17 89% 89% 89% 2 90% 90% 904 3101 100% 101 1 102% 102% 102% 11 70 6914 69l 17 99 99 99l 2 89 89% 89k 5 9T% 9T% 9T% 2 100% 100% 100% 3110 110 110 5111 110% 110% 1 109% 109% 109% 40 91% 91% 9% 10 101 101 101 17 104% 104% 104% 1 102% 1021 102% 2 10214 102 102 1 105% 105% 105% 26 86% 86 85 4 93 93 93 13 104% 104% 104% 42 113% 112% 112% 56 119% 119% 119% 12 86% 86 86% 3 90 89y% 90 27 107 106% 107 8 102% 101% 102% 3 82% 82% 824 T 97% 9T 9Th 1 100% 100% 100% 3 9T 97U 9TW 26 96 95% 96 Australla 4%s 5 Australia 53 1955 Australia 65 1957.... Austria 7s... Bank of Chile' Bank of Chile 6%s. Belgium 6s. Belgium 6% Belgium 78 1965 Belgium 75 1956 Belgium 73| Belgium 8s, Bolivia Ts ct 69, Bolivia 8s Bordeaux 6s. Brazil 6738 1926. . Brazil 6168 1927.... Brazil 7s . Bremen State Ts, Canada 531952. .. Colombia 6s Jan 61. Con Pow Japan 7s.. Copenhagen 4% b: Copenhagen bs ct. Cuba b%s.... Czecho 85 1951. Danish Munic 8s A. Danish Munic 8s B. Denmark 43s..... Denmark 5348 65. Denmark 6s. . Dutch East I47 Dutch East I 6s 62 El Salvador 8s 48. Finland 5%s. . Finland s £ 6s 45.. Framerican 7%s French 7s. French 7%: German Bank 6s'3. German E1P 6%s German 7s Ger Gen Elec 7: Greek 65 1963. Haitl 6s. . Hungary 73%s. Irish Free State 5s. Italy 7s... . Italian Pub S 7 1 98 98 93 Japanese 4s. 7 95% 95% 95% Japanese 6% 26 1037% 103 103% Karstadt 6s1943... 18 71 70% 70% Kreuger&To'l 5sct. 75 95% 95 95 Lyons 6s. . 20 103 102% 102% Marseille 6s. Milan 63%s & Netherlands 6s 72. New So Wales 57 New So Wales 58 Mex 451904 asnd. Norway 5s 1963. Norway 5%s. . Norway 6s 1943.... Norway 6s 1944.... Norway 6%s1952.. Orfent dev 5% 58 3 106t 106'% 106% 23 89% 881 89% 7 88% 88 88 10 12 1% 11% 16 97% 97U 9T 7 101% 101 101 5 104 103% 104 8 103% 1031 103% 12 103% 103% 103% 37 90 89% 90 14 103 102% 102% 27 105% 105 105% 17 100% 100% 100% 78% 3% 93% 93% 82% 82% . 20 103 102% 103 10 87% 86'% 864 2 105 2 95 2 108% 108% 108% 103 103 86% 87 Rhine West 6553... 1 90 90 90 Rhine Wst EP 7850 2 101% 101 101 Rio de Janeiro 6148 22 73% 724 72% RiodeJan8s1946.. 19 96 95% 95% RioGrdoSul 6s48. 29 68 674 68 RloGrDoSul8s... 3 93% 921 92% Rome 6%s.. .48 88% 88% 88 Sao Paulo 851936... 10 101 100 101 20 94% 93% 94% . 16 94% 98% 944 4 107% 107% 107% . 10 TT% T6% TT% 9 884 87T 88U 1 88% 88% 884 7103 102% 102% 10 104% 104% 104% 6 103% 103 108 15 108% 108 108 2 98% 98N 98% 6 103 Rhine Seine 75 42.. Serbs Cr Slov 7 Serbs Crot Slo Shineyetsu 6% Sotssons 6 Sweden 5% Swiss5%s Swiss Confed 8; Toho El Pow 7 so'::ln'.' Gons. 'r:uo 6. STOCKS. ap! raction Washington Gas Light. N. & W. Steamboat NATIONAL BANK. National Capital Columbis National cond e National Bank of Washington. TRUST COMPANY. American Becurity & Trust Co.. Continental Trust. i Merchants’ Bank... National Savings & Union Trust. . # Washington Loan & Trust...... SAVINGS BANK. Bank of Bethesda ‘Commerce & 8a otomac . Becurity Savings & Commereial. Beventh Street ., 3 Tnited Savings Washington Mechi American TITLE INSURAN( Columbis Title .... Real Estate Title.".. tle & Inv. of Md. com Wash. Cons. Title pfd. N MISCELLANEOUS, Barber & Ross, Inc., com.. Chevy Chase Dairy pfd. .. Columbia Sand & Gravei pid. .. Gommercial National Co. pfd."’ tor Mergenthaler Linotype.. ational Mtge. & Inv. eoples Drug Stores pld ve. 29 90% 90% 90% 4 103% 103% 103% 8 96 96 964 6 106% 105% 105% Vienna 6s 7 82% 82U 82 Yokohama 6s. o T 9% 9TH 9% MISCELLANEOUS. Abram&Straus5%s 1 99% 99% Alleghany Cp bs 44, 42 100% 100 . 40 100% 100% 100% 2 103% 103% 7% 76 1176 98 98% 102% 102% 100 100 Tokio 5%s 196 Utd Kingm 5% Uruguay 651960 Uruguay 29% 100 Am Cotton Ofl 68 Am Int Cor §3% . Am NatGas6%s42 5 75 AmSmit&R1st6s 17 101% 103y 104 100% 100% 138% 139 103% 103% 101% 102% 105% 106 88 Am T&T cv 4%s39 AmT&Teltr AmT&Ts?E Am Tel & Tel 5 Armour&Co 4%s Armour Del 5%s Assoclated Oil Atl Gulf 55 59. Bell Tel Pa 5 Bell Tel Pa Bethlehm Stl pm Bethlehem Steel Bush Term Bldg 58. Certn-Td 5%s rets.. 30 Chile Copper bs.... 10 G&FE) 6s May 62 26 m Invest 5348 49. 19 Com Invest 6548, . Con Coal Md bs. ConGasN Y 6%s.., Consumers Pow bs. Cuba Cane 8s. Cuban Am Sugar 8 Den Gas bs. . Det Edison 6s. Dodge 6s...... Duquesne 4% 67., Fisk Rub 8s. o Gen Cable 5%8 47.. Gen Mot Ac Cor 6s. 42 Goodrich 6%s. Goodyear 58 rets. Humble O & R bs. Humble O &R 6%8. 36 111 Bell Tel b 6 111 Steel 4%s 3 Inland Stl 4% Int] Cement 53 Intl Match 68 4° Int Mer Mar 63 Int Paper 53 47 Inter Paper 6s.. Int Tel & Tel 4% Int Tel&Tel 4248 7% 103 4% 106% 106% 100% 100% 104% 104% 100% 100% B56% 95% 9% 84%% 9314 1% 61% 105% 105% 103% 103% 99% 99% 81 82% 1 100% 100% 101% 101% 105 105% 91% 914 100 100 101% 101% 104% 104% 8! 100% 101% 104% 95 97% 97 88% 89 93% 122% 122% 103% 103% 3 *Ex. dividend. 5 BANK CHECKS. By the Associated Press, | The aggre; of bank checks drawn in principal business cities of the coun- | try last week, as reported to the Federal Reserve Board, was 18 per cent in excess of the similar total for the preceding week, but under the total for the cor- ! yesponding week of last year. Figures Tor the comparable periods follow: . Week ending January 8, $18,402- $13,000. Preceding week, $15,634,259.000. Same week last year, $21,874,447,000. "I PAINT FIRMS TO MERGE. . NEW YORK, January 13 (#).—Stock- ' holders of John Lucas, Inc. paint ‘manufacturers, have ratified plans to imerge with the Sherwin-Williams Co. #The the merger were not an- p terms of Kan City P & Lt Kan G & E6s 52. Laclede G 5%862.. Lautarc Nitrate 6s. 1. Loew's, Inc 68.... Loew’s 63 W 0 war Lorillard 58, Lorillard 6%s. .. Lorillard (P) 7s. Lou Gas & El §s 62. McC'rmick ER 65 34 Midvale Steel 5s... Montana Pow 43 Montana Pw deb b Nat Dairy 6%s.... Nat Radiator 6%s. N Y Edison 6%s NYG&EHPG NY Tel4%s N Y Tel6s4l. 105 105 103% 103% T6% T6% 4 101% 101% 1% 91% 81% 81% 86% 87 106% 106% 101% 101% 101 101 100 100 102% 102% 99 99 98% 98% 37% 38 118% 118% 105% 106% 99% 99% 106% 106% 110% 110% 100% 100% 102 108 101 101 100% 100% NErummEAnREANO RS o 27 Nor Ohfo Tr&L Nor States Pow 58 Pacific Gas & E16s. 2 101% 101% 101% PacT & T 15t b8, 2102 102 102 PacT & T bs52.... 13 103% 103% 1035 Pan Amer Pete 68 4 1034 103% 103% Paramount 681047, 12 99 88% 98% THE EVENING STAR, WASHINGTON, D. C, MONDAY, JANUARY 13, 1930. Direct to The Star Office™ Phila & Read Phillips Petro 6% Postal Tel & C5%s. 89 Pressed Stl Carbs.. 3 Punta Alegre7s.... 7 Remington Ar 6532 1 Rem Rnd 5% war.. 6 Richfield Ofl 65 44.. 11 Sinclair Oil 6s 3 Sinclair Oil 6% Sinclair Ofl 7s...... Sinclair Crude 5%s. 22 o A South Bell Tel 6s... 10 Southwest Bell 65.. 1 Stand OIIN Y 4%s. 1 Tex Corp cv 65 1944100 Tenn Copper 6s 41.. 3 Tenn ElecPow6s 47. 13 United Drug 6s 53.. 256 U 8 Rub 1st rf b U S Rub 7%s. Utah Pow & Lt Utllities Pow & Vertientes Sug ‘War Quinland 6 Western Elec 68 W Union 6s 51.: O6% ‘White Sew Mach. Willys-Ov 614s 33 Wilson & Co 18t 6 ‘Win Repeat Ar 7 3 Youngstn S& T bs. 17 101% RAILROAD. Atchison adj 4s. 4 Atchison gen 4s. Atch deb 4148 43, At&Bir4s33...... 1 Atlantic C L 1st ¢s. 55 | AtlanticCL4%s64 1 B &0 Gold 4s. 102% 102 102% 102 9 EI L T IT 101% 89% e BRBanraan Bkiyn Un El 58 50 Bush Term con 5s. Can Nat 43%s 54 Can Pac deb 4s. Can Pac 4338 46 Can Pacific ctfs Car Clinch & O bi Cent of Ga 58 C 59 Cent Pac 4s.... Cent Pac 1st 58 90. . Ches & O Corpn 5s. Ches & O con §s. Ches & O cv 4%s. @ HNaNRRE ol aa0onn © Chi&E 111 gn 55 61 Chi Gt West 45 59. . Chi Mi1SP&Pac5s75 CMSP&Pac adj5s03 Chi&NW conv 4¥ s, ChiRI&P4%s.. ChiTH. 68..... Chi Un Sta 4%s. CCC& StLb5sD. o eSns Conn Ry&L 4%s Cuba R R 5s.. Cuba RR 7%s.. Cubd Nor 5%s ct: Del & Hud1st rf 48 Del & Hud 5%s. Del & Hud 7s 30. Den & Rio G cn 4 DRG & Wst 58 55 DRG&Wst6s78.. 17 East Tenn Va&GaSs 3 ADw Barmnm Fla East C5s Gr Trunk st db 6 Grand Trunk 7s. Gt Nor 4%s 76 D GtNor4%sE. 1 Great Northn 1st 58 3 Gt Nor 5s. ool X Gt Nor 5%s. Gt Nor gen 7s. Hav El Ry §s 52 Hocking Val 4% Hud & Man aj b8 Hud & Man ref 5 111 Cent 48 53 Int Rys CA Int RysCA . Int RysCA 6%sret 1 Jowa Central ref 45 176 Towa Cent 1st bs. Kan City 8 3, Kansas City Kan City Term 4s, Lake Shore 4331... Lehi Valcn 4s..... Leh{Vgen 43 2008.. Lehigh Valley 65 20 Long Is 6837...... Louis & Nash uni 42 L&N4%82003.... Man Ry 1st 45 90. . MI1El Ry & L 55 61 Minn & StL ref 4 M St P & SSM 6%s. MKG&T 1st 4s MK&TprinbsA. Mo Pacific gen 4 Mo Pac 68 A 65. Mo Pac 5s F 77. MoPacbsG178..... Mo Pac 5345 49 evt. Mob &0 4%877.... Mont T°rm ret 5s 41 NOTex&MbsB.. NYT&M5% N Y Cen gen 3% &StLE%SA &StLE%sB ZAR2LA22%R 2% Hdd o i g ZZ270aa = ? " o b P Ed 4 o0 Ore Wash 1st 4s... Penna 4s 1948 stpd. Penna con 4%s. Penna gen 4% Penna 4 'A. 3 Port RL&P T%s Reading gen 4% 8 A RIArk&L 4% StL IM&S gn 68 31.. StL&SFpl4sA.. SIL&ESF4%s 7 1 St L & San Fr in 5 BtP & KCShL 4%s. Seab AL adj 58 49.. Seab AL con 6s. Sou Pac clt 92 o1% 91 92% 924 924 What Fixes Bond Prices BY GEORGE T. HUGHES. The Test of Time. As factors in the making of a market % | price for a bond seasoning and stability of earnings in the industry represented are of greater importance than imme- diate margin of safety in net income over charges. A bond may cover in- terest four or five times over and yet sell much below another bond earning its charges only twice over, because the latter has been tested by time and be- cause the corporation is engaged in an industry which investors have been taught to believe does not have the average fluctuation in income. This is the reason rallroad bonds have always been so popular with the conservative type of investor, It is the reason public utility issues have come to the front so rapidly in recent years and the reason that the New York State law now allows savings banks to invest in these obligations. It is also the rea- son that the few outstanding bonds of motor car companies sell on such a high yleld basis. The automobile busi- ness is a decade and more old, but in- vestment fashions, in bonds at least, change slowly. As an example of this state of affairs we may take the Dodge Bros. 6s ma- turing in_ 1940, listed and dealt in on the New York Stack Exchange. When the Chrysler Corporation took over the assets and liabilities of Dodge Bros. it assumed these bonds and they are now obligations of the former company. In 1928 net income of Chrysler available for charges was over 20 times the re- quirements. “Triple A” Class. Such a showing in the casc of a rail- road or & public utility would put a bond in the “triple A" class, but be- cause of the investment conservation already referred to Dodge Bros. 6s sold in the closing week of 1929 on a basis to yield almost 7 per cent. Probably it will take & long time for a motor car security to gain the recognition to which its merits entitle it. As those things go the automobile business is still to com- petitive and still too young. POTATO MARKET. CHICAGO, January 13 () (United States Department of Agriculture) — Potatoes—Receipts, 144 cars; on track, 252; total United States shipments Sat- urday, 926; Sunday, 47 cars; trading rather slow; market barely steady; Wis- consin sacked round whites, 2.45 to 2.60; Michigan sacked round whites, 2.50 to 2.55; Idaho sacked russets, 3.10 to 3.25. Inquiry for Gondola Cars. NEW YORK, January 13 (#).—The St. Paul Railroad is inquiring for 1,000 gondola cars, 600 flats, 700 box and 750 stock cars. —_——— Berlin Likes Potatoes. BERLIN (/) —Each_ Berlin resident eats a pound and a half of potatoes daily, say official figures which set the total consumption of the city at 6,174,~ 000 ds every 24 hours. s. High. Low. Close. 5% 95% o954 99 891 108% 117% 123% 8914 107% 101 100% 98% 8919 108% 117% 4 123% 89% Sou Ry con bs. Sou Ry 65 56. Sou Ry 6%s.. Term Asso S L 4s. Texas & Pacific 1st. Tex & Pac 5s B 1977 Tex & Pac6sC79.. 13 Third Ave ref 4s 60, 12 Tol Tr L&P 5%530. 5 Union Pac 1st 4s Union Pac 4s 68 Un Pac 1st rf 4 Union Pac 4%s Un Pac 1st ref 6s Virginia Ry 1st VYRy&Pos.... Wabash 1st ‘Wabash 2d 68 ‘Whash 5%s 75. ‘West Maryland 4 ‘West Md 53%s 77. West Pacific 5s. Wis Cent gn 4s 49 To make provision for the future is a matter of ordi- nary wisdom. SAFETY in your investment will insure this. First Mortgage Notes sgfe6l/2%l’rompl Enjoy Safety With Liberal Return in 6Y%% Guaranty First Mortgage Notes and Bonds ‘These high character securities, issued to yield 6%2%, ecured by first mortgages on improved e in Washington and its suburbs. Every dollar you place in these notes and bonds earns 6Y2%. failing because of our $3,400,000 resources. Decide NOW to invest in these excellent securities. Denominations as Low as 5250, Monthly payments if desired, Send for Booklet, “The Success Plan” - REALESTATE; MORTGAGE & GUARANTY CORPORATION Ay o ARy o b Capital Resources §3,400,000 - 24 JACKSON PLACE ' IR OR OO First Mortgage Loans Lowest Rates of Interest and Commission Thomas J. Fisher & Company, Inc. ENTERPRISE SERIAL BUILDING ASSOCIATION 7th St. & La. Ave. N.W. rd Issue of Stock Now Open e for Subscription ” Shares of Stock, $1.00 Each Payable Monthly James E. Connelly James F. Shea President Secretary 6% First Mortgage Notes ot Punctual payment of interest—prompt re- turn of invested funds at maturity, when desired. SAFE - PROFITABLE CONVENIENT -~ Particulars of available notes will be mailed upon request. H. L. Rust Company 1001 15th Street ESTABLISHED 1889 Wanted YOUNG man thoroughly experienced in handling quotation board for New York Stock Exchange house. Apply in writing only to our Washington office, 719 Fifteenth Street. J:A. W.Iglehart & Co. Members New York Stock Exchange New York Curb (Associate) Baltimore Stock Exchange Richmond Stock Exchange FINANCIAL, Brx A_13 Equitable Co-operative Bldg. Ass'n; Organtzed 1879 50th YEAR COMPLETED ' JOHN JOY EDSON, President WALTER S. PRATT, Jr., Secretary Assets . ..$5,662,540.55 Surplus & Profits......$1,705,130.78 Subscription for the 98th Issue of Stock Being Received SAVE AS YOU EARN HE Equitable’s plan of sys- tematic savings encourages | thrift in a manner that if con« sistently followed will even- tually lead to financial inde- pendence. Start now while: you have a steady income. Come in and let us explain about our systematic plan. 915 F St. N.W. Nat’l. 8100 STEIN Bros. & Boyce We take pleasure in announcing that MR. EDWARD W. GAMBLE, JR. (Formerly associated with Messrs. J. & W. Seligman & Co.) has become associated with us as manager of our Washington Office STEIN BROS. & BOYCE Established 1853 ‘Woodward Building WASHINGTON, D. C. Main Office:’ Baltimore, Md. Members NEW YORK, Baltimore and Washington Stock Exchanges Associate Members New York Curb Exchange $150,000,000 American Telephone and Telegraph Company THIRTY-FIVE YEAR 5% GOLD DEBENTURES Dated February 1, 1950 Due February 1, 1965 Issued under Indenture dated February 1, 1930, The First National Bank of the City of New York, Trustes Interest payable February 1 and dugust 1 in New York City Redeemable, at the option of the Company, as a whole but not in part, upon 60 days’ notice, on any interest date, at the following prices and accrued interest: on or prior to dugust 1,1961, at 110%; thereafter, at 100%. e Coupon Debentures in denominations of $1,000, $500 and $100, registerable as to principal. Registered Debentures in denominations of $1,000, $5,000 and $10,000. Coupon Debeni tures and registered Debentures, and the several denominations, interchangeable. Walter 8. Gifford, Esq., President of the American Telephone and Telegraph Company, has furnished us with the following statement regarding this issue: PURPOSE OF ISSUR ASSETS AND EQUITY ting current This isswe of Debentures will provide funds required by the Bell System for additions and betterments and for other capital expenditures. The assets of the American Telephone and Telegraph Company on September 30, 1929, aft liabilities, were carried on its books at more than 52,375, o 8,000,000, Investments (at cost) in its aseociated and affiliated companies amounted to $2,015,000,000 and in its telephone plant and equipment to $324,000,000. All the property of the Company is free from lien, except certain stocks and bonds pledged to secure approximately $80,000,000 Collateral Trust Bonds.. After giving effect to the issue of these Debentures, the Company’s long term debt will be less than $670,000,000, whereas capital stock (including paid-up portions of stock payable in installments) will be in excess of $1,400,000,000 par value. Thus funded debt will comprise less than one-third of the Company’s total capital liabilities. EARNINGS The net earnings-of the American Telephone and Telegraph Company available for interest, its interest charges and its net income during the five years ended December 31, 1928 were as follows: Years Ended December 31 1924 1925 1926 1927 1928 Net Earnings Available for Interest $107,619,362 129,036,334 138,931,387 150,383,895 165,268,049 Interest Charges $16,573,041 21,631,288 21,940,986 21,768,985 22,097,558 Number of Times Interest Net Income Was Earned $ 91,046,321 107,405,046 116,990,401 128,614,910 143,170,491 ® Does mot include special mom-recurving dividend of $47,938,865 received from Western Electric Compeny, Ine. During this five-year period, net earnings available for interest averaged more than 6Y; times interest charges. It is estimated that for the year 1929 net earnings available for interest were in excess of $193,000,000, or tha 7 times the estimated interest charges during that year, il DIVIDEND RECORD $9 per share. PROVISIONS Dividends on the capital stock of the Company and of its predecessor have been paid at the rate of at least §7.50 per share in each of the past 48 years. Since 1921 the annual rate has been In the Indenture under which these Debentures are to be issued, the Company is to covenant OF INDENTURE that it will not mortgage any of its telephone lines or plant unless it shall sccure these Debentures by stocks or bonds of its telephone operating companies, and that it will not pledge (with certain exceptions and limitations to be set forth in said Indenture) any stocks or bonds of its telephone operating com- panies unless it shall either secure these Debentures by pledge of securities as above stated, or secure them ratably with any other obligations secured by such pledge. In either case, the Company shall keep so pledged stocks or bonds of a value which shall be equal at all times to 1333 % of the principal of the debt secured thereby. Any such collateral so to be pledged shall be similar in character to that required for the security of the Company’s 30- Year 69 Collateral Trust Gold Bonds due 1946. The provisions for valuation and substitution of stocks and bonds so shall be similar to the corresponding provisions in respect of the collateral securing the above-mentioned 5% Bonds due 1946. THE ABOVE DEBENTURES ARE OFFERED FOR SUBSCRIPTION, SUBJECT TO THE COXDITIONS STATED BELOW, AT 99'4%, LESS AN AMOUNT EQUAL TO INTEREST AT. THE.RATE. OF % ON FACE AMOUNT FROM DATE OF PAYMEXNT TO FEBRUARY 1, 1930. - Subseription books will be opened at the office of J. P, Morgan & Co. at 10 o’clock. 4. M., January 18, 1930, and will be closed in their discretion. a Monday, The right is reserved to reject any and all applications, and also, in any case, to award a smaller amount than applied for. Al subscriptione will be received subject to the due issue of the Debentures as planned, and to approval by counsel of the form and validity of the related documents and proceedings. The amounts due on allotments will be payable at the office of J. P. Morgan & Co., in New York funds to their order, and the date of payment (on or about January 28, 1930) will be stated in the notices of allotment. Temporary Debentures, exchangeable for definitive Debentures when received, are to be delivered. J. P. MORGAN & CO. BANKERS COMPANY OF NEW YORK KUBN, LOEB & CO. KIDDER, PEABODY & CO. FIRST NATIONAL BANK, New York HARRIS, FORBES & CO. New York, January 18, 1930. THE NATIONAL CITY COMPANY GUARANTY COMPANY OF NEW YORK LEE, HIGGINSON.& CO.