Evening Star Newspaper, January 23, 1930, Page 13

FINANCIAL.’ HIGH GRADE BOND '@mms@ ISSUES IN DEMAND Irregularity Develops in Re- mainder of List at Dull Session. BY F. H. RICHARDSON. Special Dispatoh to The Star. NEW YORK, January 23.—Today | luced another dull session on the id market, with some evidence of a mn.y demand for high-grade issues, but irregularity in the rest of the list, foreign and domestic. Belief that the market has taken in as much in the way of new bond flota- tions as is feasible is rxrrmed by trad- ers and ‘more concretely evidenced by the decision of Pacific Telephone & Telegraph to issue $87,500,000 of addi- tional stock to take care of its 1930 pro- gmam. It is the first time since 1927 that the company has done any stock financing. Coming on top of the New England Telephone issue of stock, and lhu elihood. that the merger of Repub- & Steel with five other com- plnln may also be financed by a stock id not by bonds as originally intima interest in equities. steady demand for prime de- lons was shown by advances in Bdfimore & Ohio 4s, Canadian Pacific , Pennsylvania General 41;s, Chesa- & Qhio General 4l:s, Inland 41s, Columbia Gas 5s and Utah Power & Light 5s. Canadian National S8, after losing over a point and touch- their issue price level sold once more at a fractional premium. Philadelphia 58 were weak. Traction bonds, especially those of the Interborough Rapid Transit Co. and ‘Third Avenue Railway, were higher and active. The growing movement toward higher fares as the result of the Balti- more and Los Angeles decisions ex- plains part of this activity. It was also reported that a bill will be Lntroduned at_Albany next week proposing a solidation of metropolitan rapid Lrl.nlll with a 7-cent fare. Interborough refunding 5s were up 2 points and the 6s advanced 13. Thira Americans were Agreement by the Pennsylvania road to leaze the lines of the West Jersey & Seashore d for 999 years for a rental large enough to take care of fixed chmu:. taxes and & MARYLAND BOND ISSUE. BALTIMORE, January 23 (Special).— ‘The State of Maryland has set Febru- ary 12 as the date for opening sealed ction bons bearing 445 per eent cent terest. g will be the first financing under- by the State since June 30 last, ‘when an me of $53,000 bonds with 415 per’ cent coupons was sold at a price of 101.078, which is about a 4.36 per emc besis. Washington Stock Exchange | < UNITED STATES. (Bales are in $1.000.) Sales. High low 22 9830 9826 iuo 17 100 16 10014 100 16 FOREIGN. Bales. High. Argentine 5s. . 89 Argentine May 61.. Argentine §sJu 5. Argentine 65 Oct 59 5 Argentine 63 A 97w 7% 97% 9T 9% 821% 9te 913 103% 931 95% 103 1081% 109% 107% 115% Australia 4348 56.. 29 Australia 53 1956.. 8 Australia 5s 1957... Austria 7s. Bank of Chil Bank of Chile Brazil 014- 1926,.. 27 T6% Brazil 614s 1927, 34 T the street sees a return to | Ca: Colombia 6s Jan Con Pow Japan 7s.. Copenhagen 4% 53. Covenhagen s ct.. 21 974 Cuba § . 12 100% . 6 110% Czecho 8s !!52 . 3 110% Danish Munie 8s A. 14 110% Denmark 4%s. 37 91% Denmark 5%s 65... 1 100% Denmark 6s. .. . 6 104% Dutch East T47.... 5 102% Dutch East T6s62, 2 102% Flat Ts ex-war 46.. §3 90 Finland 7=. .. . 3 9 Framerican 7% 3 106% 51 114 7 120 German Bank 6s°3. 33 89 German E1P§%s 2 9% German 7s. Hungary T%s. Japanese 6% Karstadt fin 1943 Lyons &s. Marseille 6s. Milan 8%s. Montevideo 7 New So Wales 58 Norway 581963 ‘Norway 5%s. Norway 6s 1943 Norwav 6s 1944 Orfent dev 5% & Plrilvl.y-lld 6s... 22 103% . 10 105% 108% 105% 100% 75 27 93% 934 410714 107% 76 76 Poland 7s (rets). Queensland §s. Rhine Wst EP &« 53 Rhine West §x 53. . Rhine Wst'EP 7s 50 Rio de Janeiro 6% s Rio Gr@lo Sul 6= 48. Rio de Tan ¥ 1946, Rio Gr Do Sul 8; Rome §%s. Sao Paulo 85 1936 1 100% Sao Paulo 195 11 92y SALES. & Electric 45—$1,000 at 83, $500 at 83, $500 at 83. Electric 6s 1953—$1,000 at 106%. Potontac Electric 514 % ptd.—3 st 107%; ‘Washington Gas Light—9 at 101. ‘Washington Rwy. & Electric pfd.—6 at 95. 10 at 95. ational Mige. & Inv. pfd—200 at 4%, 48 at 5. ‘The Carpel Corp.—10 at 25, 10 at 25, AFTER CALL. Potomac Electric 6s 1953*‘500 at 107%. Potomac Electric Cons. 55—81,000 at wlfll. $1,000 at 1?: ik ‘ashington Gas B—$5 Al 3 ‘Mergenthaler Linotype—20 at 106%,. Potomac Electric 6s 1943—$200 at 105, Bid and Asked Prices. sl & Annnn <ol Bl]l & Annap. pfd. NATIONAL BANK. National Capital lumbia Becor N-uonfl Bank TRUST COMPANY. American Security l Trust Co. Qll Continental I'rul Merchants' Ban] Nationa] lflvlnll & Tr Union Trus Washington Loan & Trust SAVINGS BANK. Bank of Mme‘dfl glumm- Title.. 1 Estate Titi tle & Inv. of Md. co vievm. 6552, Yokohama és MISCELLANEOUS. AlleghanyCpbs 44. 5 99% 99% Alleghany 55 49.... 36 9 Am AgriChem 7%s 1 Am Chain 6s33.... 31 AmChem §%scv 49 26 Am Cotton Of1 6s... 1 Am NatGas6%s42 1 AmSmit& R 1stbs 16 Am Sugar Ref 6 Am T &T 55 65 wi. 152 Am T&T ev 41539 201 AmT&Tel trbs AmT&Tstbs Am Tel & Tel 5% Am Water Wks Am Wrtg Pap 65 47. 17 Armour&Co 4%3539 4 Armour Del S%d... 24 Atl Gulf 58 53. Atlantie Refin & Bell Tel Pa s B. Bklyn Edison b Bush Term Bldg Certn-Td 5% rgt Chile Copper 55 Col G&EI 55 May 652 Com Invest §14s 49, q East Cuba Sug %8 Pisk Rub 8s. .. R Goodrich 8%s. Goodyear 6s ret: Humble O & R Humble O &R 6% 8. 111 Bell Tel bs. Inland Stl 4%s 78 Intl Match 55 47. Izt Mer Mar 28, Int Paper 68 47 R " wuSe Ao daeRas int Tel&Tel 434m e 7 ) 2B ote 288 Manat! Sugar 7%s. Midvale Steel 6s... Montana Pow 43... Mor's & Co 1st 4% s & .e v BN AR, e wul o “ B5o% “““ | Bum R & Pitts 43455, THE EVENING BTAR, WASHINGTON, D. C., THURSDAY, J Dhflh'l\ifl.fl- Sales. Hi Richfield Oi1 68 44.. 4 96% TOTL P18 4} Tex Corp cv bs 1944 75 7| Tranncontl 011 8%s[12 United Drug 58 53.. 13 U S Rub 1s rfll.. 28 B Walworth 6s ol War Quinland Warner Sug 7 Wi . 210T% 10 101% 1 101% 2814 1 100% 7 101 RAILROAD. Wick-Spen cv 4 Wilson & Co 1: YoungstnS & T B&O SW 68 50. Boston & Malne 55, Brdway & 7th Av 58 Bklyn Elev. 6%s. .. Bklyn Manhat @ ponBuERe~ molaname Bush Term con & Can Pac 4%s Can Pacific ¢ Car Clin & O ¥l cl Ches & O 4145 93 % |Ch & O 435 wi 1995 Chi B&Q gen 48 53.. CB&Qe%s77B.. CB&Q1strf b CB&QIl3%s. Chi&E 11l gn b8 61. Chi Gt West 43 59.. Chi Ind&L ref bs. .. CM&StPGen89.. ChiM&StP4%sC89, Chi M&StP4%s E. . 10 Chi MilSP&Pacbs?h 42 CMSP&Pac ad)bs08 32 ChiN W d%s2037. 110 Del & Hudlst rf 4s. Del & Hud 7s 30 Den & Rio G cn DRG& Wst s u Det United ¢3%s. East Tenn Va&Gi Erie Gen ¢s. Eriscv 68 67, . Erie & Jersey 6s. Fla East Cos 7 Gr Trunk st dh Hud & Man aj 5 Hud & Man ref Il Cent 4% s 111 Cent Chi 43 Int Rapid Trans §s. Int Rap Tr 6s stpd.. Int Rapid Trans 6s. Int Rapid Trans 7s. Int & G Nor 1st 6 Int & G Nor adj 6 Int RysC A bs. Int Rys C A §34s7et Iowa Cent 1st bs... Kan City Ft 8 4 8214 | RIATK & L 4%s. oo StP & KCShL ¢%s. Kansas City 8 Lake Shore 45 31 Leni Valen 4 LehiVgen 4% 2003.. Leng Isrf 45 49. Louls & Nash 5. Louls & Nash 7s... Man Ry 1st 45 90 Nat Ry Mex 4%s OTex&MbsB.. Port RLEP Tks 1 105% 40 9% StL IM&S gn 6531.. .1 100% StL IMAS 9 96 SIL&SFplésA.. 23 8% SIL&SFi%s . 86 B9% StL&SanFrinfs. 2 101 St L&SWeon 4532, 3 99% Tex Ark F8 5148 50 50% Texas & Pacific Ist. 10 Tex .h‘:; 1 igh. Low. 95% 100% Bonds vs. Stocks BY GEORGE T. HUGHES. The Expanding Dollar. Falling commodity prices are probable in the opinion of Prof. Irving Fisher of Yale, the eminent economist. In a re- cent appearance before a New York State legislative commission the pro- jfessor is quoted as saying that “my guess is that there will be a long, slow, but very great deflation beginning one or two years from now. The decline will bring prices to well below the pre- war level.” Prof. Fisher founds his pre- diction on an _expected shortage of gold. Whatever the reason, however, de- clining prices are already here. Every price index shows a lower level at the beginning of 1930 than prevailed at the start of 1920, and ll'.hou[h prices are | Siss still much above what they were at the d d'll wll‘. Ofllred mml g! M by i clty ol Allentnwn. Pn., ‘l 850,000 I% ! per cent gold bonds, dated December 1929, and dlll as follows: $166,000, l'h- cember 2, 1934, at 101.30 and interest; $207,000, December 2, 1939, at 10240 and interest: $258,000, December 2, 1944, at 10329 and interest; $321,000, December 2, 1949, at 103.33 and inter- =st; 3400,000. December 2, 1954, at 103.81 and interest, and $498,000, December 1959, mt 104.20 and interest. Offered by the National City Co., Harris Forbes & Co., Graham, Parson & Co., and W. H. Newbold’s Sen & Co. ORDERS 33 CARS. NEW YORK, January 23 (#).—The New Haven Railroad has ordered 33 multiple-unit trailer from the Osgood-Bradiey Car Co., & subsidiary of the Pullman Co, TREASURY UEBTIFICATES, (Revorted by J. & W. Seligman & Rate—Matu i s Mar 1 0. outbreak of the war in 1914, the trend 3 is s‘l;t‘mcuy A’!ownwn-d por also for the of this article whether the dez;lm due to overproduction, to improvement in transportation or to some other more obscure cause. The point is that the dollar is no longer ‘epreemum in pur- chasing power. On the contrary, it is appreciating, and to this extent the argument in favor of buying common Stocks against bonds Sals Lo the ground. In recent years there hnve been two reasons advanced for investment in equities as opposed to th fixed charge securities. Ome of these was that the bondholder had no pro- ucuon against a rise in prices whereas advancing comm generally meant larger dividends to stockholders. The bondholder received the interest on his bond at the coupon rate and if that interest would purchase less goods a year hence or 10 years hence that was his hard luck. ‘The argument was sound during the long rise in prices which culminated in the post-war inflation no longer pertinent. If declining com- modity prices were the only obstacles to a xevival of the bond mlrket that mar- ket should be a strong aff: now on. BANK CLEARINGS. NEW YORK, January 23 (Special). — New York bank clearings, today, $020,000,000; & year ago, $1,625,000,000. New York bank balances, today, $148,000,000; & _year ago, $188,000,000. New York Federal Reserve: credit balances, today, $127,000,000; & year ago, $121,000,000. Raw_ silk produced in Turkey last yur ‘weighed nearly 330,000 po " 99% | Tol Tr L&P 5%s 30. High. Third Averef s IO 2! 62 ‘Third Ave 1st bs Third Avead bs. 1 100 Union Pae 1st ¢s It is unim- 3 e purchase of | Chi SHORT-TERM SECURITIES. (Reported by J. & W. Seligman & Co.) A"il-c‘!llmfl Cfl h .|. Oflll Amer. Muu 5 :0 s, 1948 ‘American TJ Tel. 5%s i943 m Baitimore &Ama ks “: 5 922333 A‘-".‘.‘i acking Co. 18155 ‘331 nBL Tl Bosih 41 '.- 1930 v, Gorp, 10 3 :e;-.sx‘ésés: & FEEEF 18 Sincigir Crude Oil o, 9T% Standard Ol N .veuiy u 1946, 100% . L l 907 973 2 , but it is | 9 No Delay or Discomfort Terms to Suit You! Phone or Write Washington Gas Light Co. House Heating Division National 8280 5 We Solicit the Rental Management of Your Property Whether Apartment, Residence or Business Prompt Collections RENTS REMITTED THE DAY RECEIVED Our Rental Department is Most Complete and Efficient. We offer co-operation at all times in the solution of Ownership Problems. Randall H. Hagner & Co. T Mortgage Loan Correspondent New York Life Insurance Company 1321 Connecticut Ave. N.W. Phone Decatur 3600 National Metropolitan Bank 1814—Oldest National Bank in District of Columbia—1930 * 15th St., Opposite U. S. Treasury One Hundred and Sixteen Years of Service —equip this bank cilities ample veteran to provide fa- enough for the needs of every depositor, big and little, TRUST DEPT. 3% on Savings SAFE HIR-S T 6%2% INCOME-PRODUCING —investment in our MORTGAGES FIRST MORTGAGES ARY 23, 19%0. iPENNSY PLANS LEASING OF SEASHORE RAILROAD Special Dispatch to The Star. + PHILADELPHIA, January ?l—oen. w. W. Attcm-ry. president Pennsylvi Railroad _ Co., toan nuthmzd the following statement: “The directors of the West Jersey & Seashore Railroad Co. and the Penn- sylvania Railroad Co. have agreed to recommend to the stockholders a 999- year lease of the West Jersey & Sea- shore Railroad to the Pennsylvania Raflroad Co., effective July 1, 1930, for which the latter company shall pay an annual rental equal to fixed charges, taxes and a 6 per cent dividend upon the stock of the West Jersey & Seashore PINANCIAL, new lease becomes effective. It will not interfere with the payment of the regu- lar dividend in the month of April, 1930. “Due notice will be given to ihe stock- the | holders of a meeting posed at which Lhes lease will be submitted for ir approval and the stockholders will also receive full information as to the terms of the lease. The proposed lease will | also be submitted to the Interstate cammem Commission for its ap- proval.” — . | SILVER QUOTATIONS. 1 silver, 44%; Mexican dollars, 33. 1518 K St. NEW YORK, January 23 (fl.—lll’l B A Investment Securities ' Rlll Values, Invif Income Courtland ufll . N.W. n-! 14 L INVESTMENT for in- o demand - SAFETY. YIELD and GRO! 3 of Dflntl’l]. 1 mtrun: Tunds''of ® oreanizations. e 1 ments {mviduals, Tinds' and Sold in Lots—$100.00 Up Call or Write Standard Collateral Shares Corporation Woodward Building, Met. 8783, "J Rallroad_Co. Provided the lease be- comes effective July 1, 1930, a special cash dividend of 5 per cent is to be id to the West Jersey & Seashore Baliroad Co, stockholders, This special dividend 1s to clear up the situation for the first six months of 1930 before the Money to Loan e T nteress ad. commison " h 1. Weller &5, 3% First Mortgage Loans Applications Invited Glover & Flather 1508 H St. N.W. National 1753 Over a Third of & Century Without a Loss has every feature which makes it ideal for income—liberal in- terest, regularity of its pay- ment and the assurance that at maturity your principal will be returned intact. There is no other type of in- vestment meriting greater con- fidence. May be purchased in amounts’ from $250 up. B. F. SAUL CO. National 2100 925 15th St. N.W. NO SUBSTITUTE FOR SAFETY T S R PR S SWARTZELL. RHEEM anp HENSEY co, MORTGAGE BANKERS 727 IS STREET.N.W. WASHIN.GTON.O.C. 1001 15th Street Loau, Correspondent for *‘ The Prudential " Famous Finan- ciers are all agreed on this point—that the safest form of investment for all time is a well se- cured Mortgage. First Mortgage Notes at Prongt 6%% Safe Our Latest Booklet—J-3—Upon Request First Mortgage Funds (three years or longer) * LOANS on residences and business buildings, in District of Columbia and nearby Maryland suburbs . . prompt approvals, valuable prepayment privi- leges—and the competent counsel of over forty years' experience in this field. Ample funds, lower interest, * H.L.Rust Company ~ ESTABLISHED 1889 ~ National 8100 HE speculative ecrisis of 1837 brought dark busi- ness depression to the na- tion; then American genius joined forces with American resources, The telegraph, the steam hammer, the sewing machine, the retary printing. press and hundreds of other devices were invented and swiftly applied to developing the country’s huge potential wealth. . . Production, built solidly on the growing pop- ulation and constantly rising land values, increased steadily the wealth of the nation, in ll\lrteen years, rose 126 per cent. Once more finvestors have come to the realization of sound uctive values as compared to speculation. The funds of the country are flowing back inte normal channels and into those safe and non-fluctuating se- curities, based on the inherent wealth of land resources values. Among such securities, the 6 per cent First Mortgage Notes sold through Swartzell, Rheem & Hensey Company have always been ranked as leaders. Their reputation has been achieved through an unfailing record for almost sixty-one years of not a dollar’s Joss to investors, As in the past, so today the real opportunity lies not in dangerous, uncertain stock market specu- lation, but in wise investment in the real under- lying values behind this country’s great wealth, In Washington, the situation of real property de- velopment is pcrheuhrly curufin—-nnly -to keep pace with the 'num' tion of new apartment , construcs is needed. The opportunity is d‘l.iu investment in First Mortgage Notes. . means to take advantage through SPECULATION VS. PRODUCTION