The Bridgeport evening farmer., 1914-09-21
NEW YORK EXPERT RE VIE WIS SITUATION IN FINANCIAL WORLD
Misunderstanding Among Bond Holders of Rock Island Re- gardling Exchange of Colla- terals- Cotton Market May Reopen in a Few Weeks.

uIAdAc---NxOGbOAAf lNAoEACOs SAe1y
 Reopen in Few Weeks.
 fThe Baron Financial News servica) )
 New York. Sept 21.-some of the holders of the four per cent. collateral trust bonds of 2oo2 Of the Chicago. Rock Island a Pacific Railroad Go. appear to be la.boring under a delu- sion regarding their legal rights. They are demanding an exchange of Chi cago. Rock Island & Pacific Railway stock for their bonds, whereas under the terms of the trust agreement se- curing the bonds no particular stock is held for the security oe any particu- lar bond, and no bond holder can re- ceive in exchange for his bond any of the pledged shares of stock.
 In other words. notwithstanding the default, the trustee of the issue is not required or permitted to hand out ten shares of stock in exchange for $1s:- 60G0 bond. Article of the trust agreement defined the rights of bond holders in case of default. section 5 of said article providing in case of default that the pledged stock shall be .solds section providing that the trustee in lieu of itself selling sell ing may institute foreclosure action. The trustee has instituted foreclosure suit, and unless holders of at least 60 per cent. Of the bonds shall make other requirements, any sale at public auction Of the pledged stock, whether by the trustee under the powers con ferred by the trust agreement or pur- suant to judicial decree. shall be made in one block or parcel. Sale of the stock in one block is a step which certain ibondhoIders violently opposed. but unless they can muster 60 per cent. of the bonds under their banner this apparently is the, method which will be followed
 Sufficient progress is being made in the effort to clear the cotton trade of open contracts to justifyythe expecta- tfen Of we'll informed people that the cotton exchanges of the country may open for business inside of two or exchanges, including those of New York and Liverpool. arose from the open contracts in existence whe the New Fork Cotton Exchange closed on August This problem has, been SC well handled thai there will be no hanging over the market when ibusi- ness is resumed.
 operations of the Standard Oil co oE New York are almost up to normal. The company started to move it's yes sels about the first of the current rorts for several weeks and since that lime the shipping situation has been cleared so that exports of the New York concern are now about up to wb bat they were before the war start ed. Business in the company in the Far East has not been interfered with, as the company has large stocks of all it's products there. Probably the rslv territory where the company Is now being ssomewhat adversely af- fected is in Turkey and Greece. where business has been hampered by the foreign exchange situation
 Many brokerage houses say that since their customers received their monthly statements on September 1, there has been evidence Of a strong effort to increase margins so as to re- duce interest charges. A rate of 8 or 1-2 per cent. has looked high to great numbers Of those who are car ryfng stocks on margin. and for that reason they have tried to reduce the amount owing to their brokers. There have been strong protests against the rate in some cases but as a general rule the brokers have succeeded in convincing the costuners that 1t was a necessity, pointing out that on their own loans from the banks they must maintain a margin of 25 or 30 per cent. and that it would be only fair if the costumera kept an equally 1ib- eral margin with them. Many houses now report that their customers ac- counts are being more strongly mar gined every day.
 (T. l.. WATSON & CO.)