Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-06-09
ALL INTEREST IN
CONVENTION NEWS
Quick Sale of Southern Pacific
Equipment Notes Regarded
as Significant

'hVit M"S lttie CnHnRc IN tnc C0001-
tions prevailing in the financial district
yesterday as compared with the day
previous. Convention talk was in the
ascendant and opinions we're as numer- :
Gus as persons stating them. 1t would
be difficult to say that any opinion or
set of opinions are generally held as I'd
the final results in the Chicago conven- :
tion. A broker when asked his opinion
said, "Wait till something crystallizes. "
And this may be accepted as the senti-
ment of the majority as far as the
financial district Is concerned.
In the forenoon the most discussed
subject was the offering by Kuhn. Loeb
& Co. of an issue of SIS 900 900
equipment notes of the Southern Pacific
Railroad Co. The offering was mere
formality, as, according to partner of
one of the leading banking houses that
had participation in the syndicate,
the whole issue was sold six times over
before the public offering was an
nounced.
He said the notes were similar to
those recently offered by the same bank E
ers for the Union Pacific Railroad Co.
They are four to fifteen year per cent,
plan, with the Commercial Trust Co. of
this city rs trustee, and are offered at
par for the short maturity. ranging to
101 for the longest maturity.
These notes are secured by SD 800.
600 of various kinds of equipment
among which are seventy-two locomo
tives Of various types and large mum
Der Of freight and passenger cars. The
notes will mature in equal installments
from four to fifteen years.
A banker speaking of the above issue
said he did not expect to see any Other
large new financing till after the con
ventions are over. There are other rea
sons for such expectation, he said, be-
sides the conventions.
The credit situation is not quite dis
| posed Of yet. as is evidenced by thu
continued liquidation in Liberty Bond'
and Victory Notes. The rates charged
by the banks on loans secured on thcs'
4 to Az per cent securities as collatera
clination to sell as the easiest and il
the end the cheapest way to obtair
needed cash.
There was some discussion over tn,
reports in the newspapers concerning
the big deal said to be carried out b!
Samuel NJ. Vauoain, president Of tn
| Baldwin Locomotive Co.. who is nov
figuring so prominently at the Chicago
convention.
These reports were to the effect tina
Mr.. Nauclain had closed deal will
Rumania for equipment to the value o
500, 900, 900, for which he took oil il
payment, and which he made arrange
ments to sell to British interests in ex
change for United States money.
A broker remarked in this connection
that it was significant that there wa
no marked response in an increase il
Baldwin stock. as would be expected
under the circumstances. 1t may b.
owing to the variations in this Ruma
nian transaction which have been givel
out from time to time and vary from
orders for anywhere from fifty to 500
locomotives.
A banker said if Mr.. Vauclan ha
consummated such deal in the way de
scribed he has opened possibilities il
the way of trade with European coun
tries which would be worth looking
into. II we can exchange our com
moditics with these countries fol
anything of which they have a sur.
plus, whether we need these things OF
not, and can find a market for then
anywhere, we will be on the highway t
a normal pre-war resumption of inter
national commerce, he said.
Conservative brokerage houses ar
advising clients to- buy only such in
dustrial stocks as equipments, rails
oils and Steels for the present. Som
say that in connection with the cour
decision not to reopen che Reading cas-
that insiders claim the stock i
worth "a.
| The high rates for call money durin
tlfe last two days are looked upon n
temporary, as the credit situation it i
claimed, is easing almost everywhere
and cheap call money Is expected {
rule all through the summer.
A banker said that as far as the GRO
movement is concerned, there will b
no scarcity of money, but he said tha
he is doubtful il the Transportation
conditions are clearing up as satisfac
torily as could be expected.
A well known broker was asked il h
expected to see any booms in the stoc
market soon, and replied that he di
not. as rates would be advanced on tn
slightest indication of such move.
That we will have n condition in thi
country in regard to oil analogous t
what we had recently in credit is tn
opinion OF broker who is interested i