The sun., 1919-02-04
PHILADELPHIA co.
SELLS NOTE ISSUE
New York Syndicate Purchases
$10,0O0,OOO Three Year 6
Per Cent Bonds.

A syndicate has been formed, Il was
learned yesterday. by Lee. Higginson 4
Co, the First National Bank, the Chase
Securities Corporation, Ladenburg. Thai
mann q Co., Montgomery q Co., Hayden.
stene a Co. and Kean. Taylor a Co. TO
sen $10.Ooo,000 Philadelphia Company
three year 6 per cent. gold notes to be
secured by 200 per cent. IN par value OF
a new issue Of first refunding and coll
lateral trust mortgage 5 per cent bonds,
The bond issue was authorized by
stockholders vote at n special meeting
yesterday which permits the creation Of
a new mortgage.
It lis expected that the notes will be
offered in the near future. probably to-
morrow morning. by a selling syndicate
headed by Lee. Higginson & Co. and the
First National Bank at 96h. to yield
more than 1870 per cent.
L. A. Carton, treasurer OF Swift 4 Co..
was quoted In a despatch from Chicago
yesterday as saying: We have had
offers for an issue Of S25,ooo.oo0 short
term notes, but have not accepted any
offer as yet" Chicago banks which
sprang into prominence through the pur-
chase Of Southern Railway notes are
| understood to be dickering with tho d.
rectors of Swift & CO. regarding a pro-
posed issue Of $25 1000. 900 two or three
year per cent notes to be offered for
sale at par. The reason for the contem-
plated financing Is said to be the desire
of the company to take up some Of IL
bank loans. which have become abnor-
mally large because OF high hog and cat
| tie prices.
Banking houses In this city yesterday
received syndicate letters from Halsey.
Stuart a Co. and the Continental and
| Commercial Trust and Savings Bank OF
Chicago outlining terms OF the under
writing syndicate OF the S35.00o,00o OF
Southern Railway Company three year
be taken by tho War Finance Corpora
ton at Washington in case the notes do
not meet with prompt disposition.
| According to the syndicate letters the
price realized for the notes 10 s7& and
syndicate participants will receive tins
notes at ss. The managers are allowed
u Of per cent for handling the trans
action. The price at which they are tc
be offered to the public Is OK. A sell
Ing commission Of u OF l per cent. IL
allowed members Of the syndicate. Al
9sk the notes yield more than 81 pei
cent.
The Chicago bankers have received
refusals Of local bankers to participate
In the distributing syndicate, particu'
larry from those associated with J. p
Morgan & Co. In their bid OF 81 for al
the S25 900, 900 notes The local par
ticipation promised to be 80 slight as e
cause Mr.. Stuart Of Halsey, Stuart q
Co. to take a trip from Chicago to THU
city.
1t developed yesterday that the Chi,
cago bankers could not be Induced Il
bid for the Issue until they were tolt
that the Morgan bidders had no chanc'
TO get the bonds at 81 and that IN,
Railroad Administration was determined
10 decentral!ze the proposition OF Nnan
cling railroads IT is proposed, II Is un
derstood, to try out bankers IN ST. Louis
Denver and San Francisco on future "a
sues.
The new Southern Railway notes ar
to be secured by deposit with Chicag
hanks of S43,500,ooo Southern Railwa,
. development snd general mortgage Pc
!, cent bonds having a present marke
value 1871 per cent more than pa
value OF the notes. Fairfax Harrison
president Of the Southern Railway, 4
letter to the bankers, estimates tn
1918 gross at s12S,574.297 and net oper
, ating income as S29.2sl.s7o. The aver
age for the test period is Sis.728537
which would leave Southern, II Is est
mated officially. with a balance, afte
|. charges. OF 35.5oo.ooo.