Evening star., 1915-02-06
LARGE BOND ISSUES
ARE EASILY Fl0ATED
Indicating an Abundance Of Money
Seeking Employment-Some
Refunding Operations.
Washington Gas Shares Only Active
Local Security-Railroads
Practice Economies.
BY I, A. FLEMING.


capital seeking employment is evil
denced not only by the statements Of
bankers, but from the ease with which
large bond issues are being placed. the
most noticeable instance Of the latter
being the placing by the Pennsylvania
Railroad Company of s49,00o.000 AZ
per cent bonds at better than par. fol-
lowing period prior to the 1st Of
January. when per cent was almost
a minimum rate for even gilt-edge
loans
At the beginning of the year 1t was
thought that railroad companies and
Industrial corporations with millions
of short-term notes maturing during
the next few months would find great
difficulty in obtaining funds for re-
funding operations. it being admitted
that conditions had not been such as
10 warrant their payment at maturity.
But conditions are just the reverse of
expectations-million seek investment
and bond issues of merit are in such
demand that the competition is sharp.
The International Harvester Company
has just sold s20.0o0.o00 per cent
notes at par, Baltimore sold $s,5oo,000
4 and Az per cent bonds at price
yielding about 4.3o per cent to the
buyer; the Lackawanna Steel Company
has sold $4,000. 900 per cent notes,
two years maturity. and the work Of
refunding is going on at pace un-
thought of sixty days ago.
An authentic statement that the Ma
tional City Bank of New York was car
rying AZ per cent reserves is a strong
indication of the ease OF the money
market. Some local banks are carry
ing % to 35 per cent and while still
holding for good interest rates have
been making concessions here and there
While such conditions, in themselves.
are satisfactory to the corporations
having financial operations to under
take. they are held by many not an
indication of good business conditions.
as they would not exist were money
commercial enterprises The large sup
ply is in a measure due to the release
of millions of cash heretofore held in
banks reserves; dnronsn lines .ne esta sns1sm
but more to the duilness In general
business.
commenting on the federal reserve
Of the National City Bank Of New York.
has this to say:
"There is some criticism Of the federal
the apparent Inactivity Of the regional
banks. People see these banks with largo
stats and doing no business. and they
begin to inquire what they are there for.
But to this I answered that they are like
a fire engine, and there is surely no COM
plaint to be made when that Is standing
idle"
Treasury Statement.
Disbursements by the Treasury Depart
ment for February Z exceeded the receipts
by $561,682. The excess Of disbursements
date was $92,340,636. as compared with
n,477.465 to the corresponding date Of
the fiscal year 1914.
Local Securities.
The only activity on the local ex-
change today was in Washington Cas-
100 shares. In lots. selling at TAN tol
T4N. A few sales of Washington Rail-
way and Electric preferred were made
at IS.
In the bond list, Washington Rail-
way and Electric As eased off to s0H,
but after the call recovered to 81. Po-
tomac Consolidated SIS were Y of at
esh.
Financial Notes.
F. W. woolworth Company's sales
for the year 1914 totaled SIS. s.s1s, ,ess.
an increase Of over $3.o00.o 900. and the
net income was $S,429.se6.
Baltimore and Ohio's operating income
for December showed a decrease of
s205.sS9, as compared with the income
for the corresponding month Of 1913.
Chicago and Northwestern's operating
income in December was $1,546, ,706, a de-
crease of sS569
The Continental-Co National
Bank Of Chicago reports 100000 IN
crease in deposits during the last week.
The Lake Shore Railroad Company for
December showed a decrease Of $500. 299
in operating income. but this was turned
to an increase Of $1.035. 300 by great
cuts in operating expenses and q reduc-
ton OF S159,s12 in taxes. For six
months the road showed an operating in
come of. 81, 1896 through a $4.437.92S
cut In maintenance OF equipment and
way and other expenses