The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1915-10-15
Business and Finance
Bvw. S. Cousins, Editor The Amsican Banker

ments at four and one-half per cent in
terest, we may reasonably expect a
considerable appreciation in their mar
ket value.
The number of underwriters is very
large, the bankers having permitted
individual investors to participate in
the syndicate IN the same basis as the
largest banks and bond houses. This
procedure is declared to be very un-
usual. Many of the underwriters have
come in for amounts as small as 500,
while there are a large number of $500
and ST, OCO subscribers to the syndi-
cate. Under the rules of the syndicate
adopted last week an underwater may
withdraw his bonds by paying 90
with the understanding that he will
not resell them until after the expira-
ton of the syndicate, the life of which
has been fixed at sixty days. Under
writers making Withdrawals will re-
ceive rebate OF Ia after the syndi-
cate is closed. Underwriters may elect
not to withdraw the bonds and in that
event they will be held accountable
for their proportionate share of the
total underwriting for the unsold
bonds. Should all the bonds be sold
to the public at % and none left for
the syndicate members, then the un-
derwriters will receive the profits of
the syndicate represented BY the diff
ference between the syndicate price
and the price paid by the public, which
after making deductions for expenses,
will amount to $7,500,000. Under
writer's, like everybody else, may pur-
chase bonds from the syndicate at o9
if they choose to do so. Bonds bought
at 98 directly from the syndicate may
be resold, while the bonds withdrawn
by underwriters must not be resold
prior to the expiration Of sixty days
Underwriters will have to pay their
first installment of Is per cent on Oc-
tober Is. The second installment of
rs per cent is due on November Is and
the third and last installment Of so
per cent is payable on December Is
Participants in the underwriting syn
dictate who withdraw their full partici-
patton are relieved from any further
syndicate liability.
Stock Market.
Wall Street has during the past two
or three weeks enjoyed the most wide
spread and sustained interest of the
general investing public that has ever
been accorded our premier security
mart. Transactions have been large,
even record-breaking but there is not
even the suspicion of manipulation or
wash sale" movements, as was too
often the case in days gone by 1t is
true that the market values of many
stocks have been marked up many
points beyond their true worth, and
in this respect there is danger of a
rude awakening for many who are al
ready spending their paper profits"
There is an almost complete discon-
tinuance of sales of ten thousand or
even thousand share lots, indicating
the wide area over which speculative
interest has spread, and proving most
conclusively that professionalism in
the market is secondary to genuine
trading by the public.
Moreover, Wall Street has taken
particular precaution to protect itself
against some of the undesirable effects
of unrestrained speculation, and to
this NAV be attributed some of the
severe declines in those issues which
have been ear-marked for sensational
advances. In order to protect specu-
lators against the consequences of
their own folly, many of the broker
age houses have sent out demands for