New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-05-22
BRIEF NOTES OF FINANCE
paragraphs Of Current Interest
for the Investor.

,.-ionce Of a st. Paul department
7" ceiling $500 worth Of st. Pau
'o'T bonds in three hours opens up posi-
az Cor the distribution of securities
a'u ,hs counters Of department stores
M worked out will do much 10
Sn''s 10 investment buyings. II every
p0v.,.ment store in the country made
'sls A. high class investment securi-
"a -. especially in small lots OF stocks
10 ii denominations OF bonds, in time
an' "a ia become a regular thing for the
N'' amer 10 put his surplus weekly
SAs .,. into such securities as might ap-
him Department stores could
-. SPECIALISTS who would make selec-
"' :, stocks and bonds for customers,
D' stead Of the business OF selling Sc
v 49,, being confined to brokerage Of
!, would be extended and popular
and the lnwarranted prejudice that
-. ,o-day against Wall Street would
,-,sully disappear.
City Bond Sale.
,o,al OF bids received for the New
= C,v bonds on Tuesday was the
w., received al any sale since 1893.
~. ,ield basis on which the bonds
% .o,d was the highest that the City
WV York has had TO pay since the in
..ors,on Of Greater New York. Lead
,.rkers were not favorable 10 the
a,s ont Of the city bond issue at this
'.-oS owing TO the indications OF high
r,,sy for some time in the future, but
...r we're loyal 20 New York and further
..r,.d the necessity for insuring ample
.1,.,,ntions TO an issue Of such great
-,,,,once as the New York municipal
,.., onsrinc. The range of bids by the
''-,. banking houses was around par
IA even though these bids were for
-. sized blocks. II Is reported that
..,. Of the large institutions Will be
.,rssi 10 take any Of the bonds. So far
=, IN. price OF 40 per cent is concerned,
,.eb the city will Rave TO pay for the
-ry. the rate is not extraordinary IN
~,x ~ the changed economic conditions
,,t he prevailing high rates required OF
r-ys,e corporations.
Expanded Fruit Lands.
-, United Fruit Company has almost
,ossls6 its acreage in the tropics through
"a. Increase in ownership and lands
,...sd During the fiscal year ended Sep
,,nb.r 90 1912. the company expanded its
,.,,sse from 504. S24 10 So. $50 or an in
rs,se Of $4,000 acres. equal 10 about SO
=, rent The reason for this expansion
10, in the experience Of the company IN
attempting 10 buy 50 per cent of its fruit
!, the open market, while being content
"a raise only - per cent on its own lana.
ne opposition that developed among the
psoole from whom fruit was purchased
sued dissensions and annoyances. and
a., year the company decided TO AVOID
.grther friction along this line and pur-
thased IS per cent Of the available banana
..ds in Central America. and to-day is
hiring over 50 per cent of the bananas
/ sells in the market.
Tax Effect on Bonds.
Commenting on the amounts That VIII
!, raid as a result Of the income tax ana
ne effect on the bond business, The
San Francisco Chronicle" says that II
makes no difference in the ultimate yield
vhsther the tax be paid directly OF indi-
rs.tly by the bondholders. and that no
l,ysstor ever gives serious consideration
70 he brokers' commission when he de-
grrines to buy bonds. Assume that ne
,,sr5ed 10 buy 10000 per cent bonds,
yvng around par. which would be an
.y,sge WELD for standard investments.
he annual income would be 5000. 5000
4 which would be exempt. The annual
" on the remaining 81 900 would be $40
shle the brokerage at local rates would
x 80 on the original purchase. In other
Tmds, Il would require twenty-five years.
.sout the average life OF bonds. for the
ncome tax 10 amount 10 as much as the
srokerage The difference would still be
-ach In favor Of the tax, which is ols-
rbuted throughout a twenty-fve-year
xnod. while the commission is paid at
ne outset and would more than double
1slf at bond interest rate during the pc
rad Of the tax payments. II is IDLE TO
IMPOSE that an investor Will thought
lmly pay the commission on such
rusaction only 10 balk at the thought
4 the income tax,