Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-07-28
GRAPHOPHONE CO.
SELLS NEW NOTES
New York Syndicate Takes
$7,5OO.OOO of Columbia
8 Per Cents.

Announcement was made today that
a syndicate headed by the Guaranty
Trust Company. Kissell. kinnicutt x
Co. and DominiCk x Dominick. all of
eco 900 of Columbia Graphophone s
per cent five-year notes.
\ public offering at around par IS
expected in the immediate future The
notes are understood TO be convertible
into the comPany's stock.
Proceeds from the sale will he used
to expand manufacturing facilities
1t is further agreed that the pur-
chaser of the notes shall have the
right, with each note purchased, TO buy
after February 81 1921 three shares
of the common stock of the corporation
at $40 share. Should. the corporation
offer common stock at a lower figure
during the life of the notes the agree
ment will be mOdifiai as regards the
price of purchase option.
The notes are redeemable in part or
in whole at par and interest plus one
half of / per cent for each Sin months
remaining at time of redemption.
Wall street and Rails.
Speaking in Philadelphia yesterday
on Wall street and the railroads -
Richard Spillaue of the Philadelphia
Ledger suggested that as the railroads
of the country would need moro money
in the next five Years than they have
IN any similar period in history. that
The surest and cheapest way to get ii
viii be TO offer their securities di-
rect 10 their employees. to the people
using the roads, to the shippers and
10 the bankers in small towns through
which their lines are run, instead OF
taking their bonds and stocks 10 Wall
street. whore difficulty Will he ex-
pcrienced IN diSposing of them because
of the great drain from industrial or
ganiZatiOns
Not only would the carriers of the
nations goods find ready source of
MONEY through that plan" sad MIR,
Spiliane. but their employees. with saw
iHeS invested in the roads. would give
letter service and give up the thought
ci striking. realizing that returns on
the Investments depended largely upon
their Individual efforts
The speaker said the plan Will work
equally as we'll in industrial organiza-
tons.
The direct offering of transporta-
ton securities to workers. railroad or
otherwise. will fill the need for rec
ngnized reservoir for the surplus
FUNDS of highly paid wOrkmen, who
AT present are putting their money
INTO oil stocks. he asserted. adding
that the number OF persons buying
Oil securities was almost beyond be
lief.
w all street will not resent these
future direct offerings" the speaker
local railroad official took up the mat
ter in New York and found that the
financial leaders had more business
than they cared to handle and would
welcome adoption of the idea as giving
them greater opportunity to dispose
of securities of other industries
The demand for money i going TO
be more acute in the next five years
than ever before" said Mr.. Spillane.
Il would like to see the Pennsylvania
railroad conduct a steady overtime
counter business in its own securities.
L would like to see the automobile
manufacturers offer their stocks and
bonds direct to the purchasers of
their products and their employees
Il believe that if every worker in
every company was holder of Sc
curities in his company he would be
more efficient workman, for the
greatest weakness in industry today
is labor"
Trading Light.
Trading was exceptionally light on
the local stock exchange today. Ten
shares of Washington Railway and
Electric preferred sold at As. while
three shares of Capital Traction
brought 81 y. There was one Potomac
Electric Consolidated disposed of
at S2l2
Cause of Market Depression.
The governments demand for S.
SUU-UUO cdSh on ueSQdg ana NOtlncd-
ton of the need of $4,000 900 more on
tomorrow from New York banks was
responsible for the severe slump in
stocks yesterday. The bank state
ment on Saturday showed a deficit
of S4,276,000 and this and the govern
ment Withdrawals forced the banks to
clamp down the lid.
This morning call money loaned
here at per cent with considerable
anterior funds offered.
' The Treasury is leaving 80 per cent
of the recent 53i per cent certificate
issue with local banks. but is not
likely to permit it to stay much
longer.
Washington was not subscriber
10 the usual quota of certificates of
the last issue and for that reason j.
not likely TO suffer seriously from
withdra walls
, Local banks still seem to have
money for the highest grades of COM
mercial paper at per cent. with the
added value of the full discount in
advance of earning.