The sun., 1919-02-27
CENTRAL LINES TO
SELL EQUIPMENTS
Bids Will Be Received March
3 for S17,300,0OO in a 1-2
and 6 Per Cent. Serials.
OMAHA BOND OFFERING
Washington Authorities Sell
New Railroad Securities to
the Highest Bidder.

Investment houses In this city, Chi
cago, Philadelphia, Pittsburg and other
financial centres Of the country. whether
small or large, have received, II was
learned yesterday, a circular letter
signed by w. X. Vanderbilt of the New
York Central lines requesting them to
submit bids by noon March 3 for an
proximately $17.a00.o 900 equipment trusts.
Inc issue includes about $1,000, 900 ~
per cent equipment trusts Of the New
york Central, 100000 6 per cents. Of
the Michigan Central and $3.50, 900 6
per cents of the big Four"
1t had been reported enormously that
Halsey Stuart & Co. and the Continental
and Commercial Trust and Savings Bank
mad obtained ar option on these equip
ments subject to the disposition of $25.-
100000 Southern Railway notes pur-
chased by them. The request for tenders
shows that all previous bids. including
that of J. p. Morgan & Co.. have failed
to satisfy the Federal Railroad Admin
istration,
In fact. previous bids for these equip
ments had been received from five diff
ferent banking groups. but according to
reports none Of the bids was accepta BILE
to the Washington authorities. So the
larger list OF investment houses
New 8 Per Cent. Bonds.
Hornblower & Weeks and William
Solomon & Co. announced yesterday that
subscription books would open to-day
at A. NJ. for the s6.o70.o00 Chicago,
81. Paul, Minneapolis and st. Louis 6s
The Offering price Is 1867, at which
they yield slightly more than 5L per
cent These bonds are legal for savings
banks. and 1t is understood that while
subscription books have not yet opened
a good inquiry for the new issue has
been received from savings banks
According to despatch from Mon
treal formal announcement will be mad,
to-day OF the terms of the issue of s4.-
600. 900 Riordon Pulp and Paper per
cent ten year (closed) mortgage sink
Ing fund gold bonds which are being sold
in the interests OF the kipawa Fibre
Company, which Riordon controls. The
issue price Is o. and accrued interest
yielding $40 per cent, and the bonds
carry bonus OF Is per cent of Klpawa
Company common shares, or n shares
with each $1,000 bond.
feature 10 that the company agrees
to pay Canadian or United States in
come tax up to and including per cent.
Associated with the Royal Securities
Corporation In tho issue are William A.
Read & Co. of this city. Il. II. Rollins &
Sons. Parkinson & Burr and Coffin &
Burr Of Boston. 1t is understood that q
considerable portion of this issue is being
placed with investors in the United
States.
The letter regarding the New York
Central equipments points out that the
trusts are dated January l. 1918. and
That the July and January instruments
on the equipment have already been paid.
This, II is said. adds to the attractive
ness of the new equipment trusts.
Railroad Financing.
The despatch of a letter to practically
all the important investment houses In
the United States calls attention to the
fact that railroad financing Is now being
accomplished by the Washington author
tiles along lines entirely different from
that previously practiced when the cor
porations were under the MANAGEMENT OF
corporate officials and directors. in that
whenever new funds have been de-
sired the Washington authorities have
''shopped" for the sale OF new securities.
Two important financial transactions
have been accomplished In this manner.
namely 325,000 900 Southern Railway
noles ana so,V U'UUu NnlCdeo, 81 raul,
Minneapolis and Omaha bonds. In both
instances the new Issues have gone 10
the highest bidder, which happened to be
bankers who previously had not been
identified with financial matters OF those
corporations.
Reports are In circulation that the au-
thoritles at Washington have under con-
sideration plans whereby future railroa d
financing will be undertaken through the
medium OF public bids, the same as Is the
case with financing by municipalities and
States. Such a contemplated step does
not meet with overwhelming approval.
but bond men admit that its success
would depend very largely on the char
acter of security being offered by the
Railroad Administration