The sun., 1916-10-28
BUYS $7,5OO,OOO IN
BRAZILIAN NOTES
Bankers Pool, Headed by Read
4 Co., Take Public
Utility Issue.
WILL BE OFFERED HERE
First Financing Of Kind in q.
s., London Formerly Float
ing Such Loans.

A pool Of investment bankers has
been formed. II was learned yesterday.
by William A. Read 4 Co. TO finance the
needs principally Of South American
municipalities. public utility and indus
trial concerns. As its first step the pool
has purchased from the Brazilian Trac-
ton, Light and Power Company $780,
900 three year 9 per cent. gold notes,
which will he offered to the public mex
Monday. This Is the FIRST offering OF Its
kind EVER made in this country.
Tho pool. known as the Read group.
plans to 20 extensively into financing In
South America, In addition to other for
eign countries, and has several other
large transactions under a The
names Of the bankers In the pool were
not made public, but II 10 understood to
houses.
The Brazilian Traction. Light and
Power Company 10 the largest public
utility concern in South America and
formerly did most Of Its financing In
London, but owing to the war has
turned to this country. The company
controls all Of tho street railway. cleo
trio light n power business In the
cities Of Rio de Jane.ro and Sac Paulo
uiiu diJhNtUt tcTTItOTy. anu teTNeS u
population estimated at moro than
1000. 900.
The notes are q direct obligation Of
the company. comprising lis only funded
debt. and are secured by pledge with
the trustee Of $4,000, 900 Of bonds OF
subsidiary companies. They are fol-
lowed by stock having a present market
value in London Of nearly ten times the
par OF Issue. The properties covered by
the pledged collateral represent a cash
investment OF more than 500. O00. 600.
with only about $4,000. 900 outstanding
prior bonds.
The notes will Ia offered 70 the pub
lie at 80 and interest and will yield
about 6A per cent. They will be dated
November 1. and the interest and prin-
c'pal are payable In United States gold
at tho office Of tho Central Trust Com
pany. The notes are callable at the
option OF the company. either in whole
or In part by lot. at Io3 and accrued
interest at any time before November J..
1918. and at l0l and accrued interest on
May 1. 1919.
The notes follow 5000, 900 s per
cent. cumulative preferred stock and
$l06, 2so,00 Of common stock. which has
paid dividends since issued at the rate
Of 4 per cent The collateral TO secure
the notes. which will be deposited In
New York. Includes 5000 67 RIO de
Janeiro Tramway. Light and Power
Company general mortgage s per cent
bonds $c.501.4s3 Sac Paulo Tramway.
Light and Power Company general mort
gage 5 per cent. bonds and s47.5Oo.00
Rio de Janeiro and Sac Paulo Telephone
Company first mortgage collateral trust
6 per cent. bonds.
The company was Incorporated In
Canada In 1912 and owns more than 90
per cent Of the capital stock Of the Rio
de Janeiro Tramway. Light and Power
Company mt the Sac Paulo Tramway.
Light and Power Company, and through
the first named company Will own all of
the capital stock OF the Rio de Janelro
and Sac Paul Telephone Company. All
OF tho companies operate practically
without competition and under conces-
sions which are mainly exclusive and
are either perpetual or for a long period.