New-York tribune., 1917-07-18
General Electric
To Issue Short
Term Securities
Other Corporate Financing
May Follow New Demand
for Investment Bonds


bring out an issue OF sl5,O00,0C0 Of
short-term notes within the next few
days. While no official announcement.
has been made, it is understood that
the loan will run for three years and
that it will bear interest at the rate Of
per cent. The company has a large
amount OF business booked, and it is
generally believed that the proceeds Of
the issue are required for the handling
of heavy orders recently placed.
Other industrial corporations are ex-
pected to follow the lead of the Gen
eral Electric Company by raising
funds on short-term securities in the
near future, while some railroad financ-
ing of a similar character is also an
ticipated.
Bond Dealers View
Unexpected improvement in the in
vestment demand for high-grade Sc
curities, bond dealers say, invites such
offerings. This improvement has be-
come decidedly apparent in the last
few days, tho demand being described
as general In character, indicating
that investors in all parts Of the coun-
try are in mood TO buy the better
class Of corporation securities despite
the heavy drain imposed on savings
and investment funds by the fotaton
of the governments Liberty Loan.
eve are selling more bonds now
than at any time in the last two or
three months" said the head Of one
large investment banking concern.
THE market cannot be classed with
that of last January, but the demand
is of a substantial sort and embrace
nearly all classes of issue One ex-
PLANTATION for the improvement. prob
ABLY the principal reaon, is that so
many first class securities are selling
on a basis which yields the investor
an income too tempting TO be resisted.
Scant Supply
"The supply of good securities at
the moment is none too large. That is
why new issues will in all probability
find ready market. Indications are
that the demand will keep up until
the next instalment of the Liberty
Loan is offered. When that comes the
banks and bond dealers will, as a mat
ter of course, concentrate their ener-
gies on the governments financing the
same as they did during the Liberty
Loan campaign
New York City bonds recently pur-
chased by the Morgan syndicate are
said to be selling we'll. The S7,500,00
of serial maturities have already been
disposed of, as well as a substantial
part Of the long-term bonds. These
are being offered TO the public at Iol%
and interest, yielding approximately
442 per cent.
General Electric Expands
The financing proposed by the Cen
eral Electric was foreshadowed in the
company's last annual report, which
showed that cash on hand has shruni
from $30,13S,913 at the close of 1915
to S12,167,707 on December 81, 1916,
while the amount of notes and ac-
counts receivable in the same time had
increased from sl9,619,216 TO s26,S18,-
297, and the value of merchandise be-
ing carried at factories and on con.
signment rose from less than s30,o00,-
600 TO over S60,000000.
Extensive additions to the company's
manufacturing facilities to meet the
unusual demand for its products also
necessitated the expenditure last year
Of S8,S2s,25 for plant account. Az the
present time the bonded debt Of the
company is S12,047,5O0. It's authorized
capital stock is slO5,0Oo,oO0. Of which
S1O1.b12 800 is outstanding.