The daily morning journal and courier., 1907-10-28

| new five per cent bonds even ii he has 1 to sell a portion of his stock, which is now ex-rights to pay for the bonds In a few years he will again have the ! stock resulting from coiVersion at par | of $25 and meanwhile will have receiy- | ed five per cent. interest. At the pres ent market price of the stock it only pays the same rate of five per cent. on the investment. If by any possibility | in the future the stock should decline to par the stockholder would have lost I the entire premium, and the bond hold i CT would be just even. The probabill- ! ties are that the bond will rise in price as the conversion period approaches, whereas the price of the stock will be l governed by it's rate of future divi- dends and interest rates on capital in- vested ill other well managed public | utility corporations. These gas rights expire at 3 p. m., November 1, with the first payment of 25 per cent, due De- cember i.
 The relative disposition of the pres ent market quotations for New Haven Gas Light stock and the rights for the new convertible five per cent. bonds l has caused stockholders to do little figuring and reach the conclusion that the profitable course will be to sell the stock at current quotations and secure the convertible bonds equivalent to the same amount of stock.
 Roughly figured suppose the holder of 100 shares can sell at at $40 per share and buy the rights on 500 shares at 75 cents, then subscribe for the bonds at par. These bonds will be turned into 100 shares of new stock o1 same par and market value as the | old stock. The stock is now quoted or a five per cent. basis and bonds bear | the same rate of interest.
 Example; sell 100 shares at $40 ..S4, ,OOt Buy rights on 500 shares at 75 l cents ........,........... ..$ 450 l Subscription ...... -. ....... 2,50O 1 Total cost ........ ............. ,95t Difference in cash to be put at l 5 per cent. interest .............. 1,05t
 Annual income adjustments:
 Dividend on 100 shares at 8
 per cent. .................. $2000t 5 per cent. on $2,5O0 bonds $125.00 I 5 per cent. on $1,05O cash... 52.50 1775l Annual loss in cash income.,,. $225l 1 Total loss for ten years ...,.. $225 0t Net profit ($1.O5O. less. $225) ten ! VaarS QoS nl
 If the bonds should be converted II somewhat less than ten years the samt profit would accrue for the shorter time
 If the rights can be secured for 10 cent
 the same line of computation will show
 a profit on 100 shares of $S70. If stocl is sold at $39 per share and rights
 bought at 70 cents the profit on 1O ! shares would be $72oe If stock sold a | $S8 per share with rights at 70 cents
 the profit on 100 shares would be $570 \ If stock is sold at $37 per share witt
 rights at 70 cents, the ten year prof
 would be $40. If by any possible fin
 anciel revulsion1 the price of the stool | 1t time of conversion should be dowr l to par the shrinkage would be all o1
 the stockholder and the bond holder bt
 even. If stock at time of conversion
 be worth $50 the old stockholder VII
 have an advance of .$10 to $12 per shar,
 whereas the new stockholder througl
 the bonds will have an advance of $1 to $21 per share.
 Swift & Go. stock, which is largely held in New Haven, sold down on the break to 86, closing at SS. This was case1 by the stock being thrown over board by some holders to protect theii ] securities.
 U. $. Rubber dividend checks will be
 sent out on "wednesday, 2 per cent. foi
 the f1rst preferred, 1 1-2 per cent. fol l the second preferred.
 Transfer books of the U. S. Express | GO. close on "Wednesday for the semi annual dividend of $3a per share pay table on the 18th.
 This is an increase of 50c. per share upon the May dividend.
 Pennsylvania Railroad books clost next week for the semi annual divi.
 dend, payable Nov. 30, of 1-2 pc cent.
 The clearings and balances of tht New Haven banks for the week ending
 Oct. 26, 19o7 and for the correspond ing week of last year are furnished by the secretary of the New Haven clear.
 ing house as follows:
 Clearings C1aa,S,,o Q,