Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-04-18

ated more or less severely, but are
poth moderately strong: some few In
surance organizations are doing well.
while others have had more or less
tempestuous careers.
Less than ten years ago plan was
eVolFed TO unite in one all pubic
utilities through the vehicle of the
w ashfnston Utilities Corporation. but
senator sen La Toilette promptly gave it
me Quietus save as speculative
proposition through a resolution that
no company operating in the Dis
triet could hold more than q small
percentage of the capital stock OF an
o!her company without the consent OF
tne fublic Utilities Commission.
mad this measure not passed 1t is
within the robabilities that there
would be today one company oper-
ating the public utilities and more
readily and easily controlled by Con-
gress or the Commissioners.
That the company would have been
IN any better condition than the util-
tiles are today is matter of specula
ton. on which the readers judgment
is as good as any ones.
Continental Trust Dinner.
Nathan B. Scott. former United
States Senator and vice president of
the Continental Trust Company. has
invited the officers. directors and en-
ployes to be his guests at dinner
" Ue given AT lne congress ttOltl Oh
wednesday evening. May Il.
Liberty Bonds.
The current low price of liberty
ment and has been brought about
largely through the action Of the
government in paying 5 and So per
cent for its borrowings from banks
for three to six months.
Old holders Of bonds are suffering
ft-rt L.. Mt,
ments. which. while making big re-
turns on their present valuation do
not make these returns to their own
ers, who, on their present valuation.
do not make these returns to their
owners. who paid par and accrued
needed for recent purchasers, but
some consideration is due old sub
scribers.
]. s. Bache, a prominent New York
banker and broker. offers the follow
ing:
finally to recognize fundamental
economic law as to competition OF
credit in the general market should
also recognize the justice of placing
the old issues upon decent invest
ment basis. This. as we have frequent
ly suggested. could be easily done by
funding all the old issues into new
lOO-year bond bearing per cent In
terest, for a period. say. Ave or ten
years, after which. in other periods.
the rate could be successfully re-
duced. This would do more to encour-
age thrift by making present mold
ers contented than all the efforts Of
the savings division will pobaoly &C
complish otherwise.
The banks are still carrying about
one-third of the total goVernment
borrowings. somewhere around SIX
and a half billions Of dollars In no
erty and other government issues,
hamnerine the entire business of the
country by reason Of this misuse OF
credit. -,
1T can be imagined that the dis
couraging effect of depressed price
quotations upon the great body OF
original bondholders. some niteen 70
great. These faithful allies Of the
government have been more or less
impatiently waiting for the bonds TO
return to par. and this contamination
now seems further away than ever.
The high cost Of capital compels the
this will probably continue for a con-
siderable period, during which lib
erty bonds will be selling as much
below par as the general rate Tor
money dictates.
Congress and the Treasury are
neRleCtinE an important Quty III nv
waking to this situation. which can
be easily remedied and which is add
ing markedly to the serious discon-
tent among q great body OF the peo-
nile whose present earnings, because
of the high cost of things, are not
sufficient to live upon.
A Per Cent Yield List.
F. J. Lisman, an old-timer in the
investment banking field, has prepared
an interesting compilation of old-line
bonds. formerly considered. and right
ly so, as the high-grade standards, as
they are today, upon which an invest
ment of $4,000 made at the present
time would give return Of per cent
This in response to the sentiment
expressed in some circles that Penn
syivania Compang per cent new
bonds offers large yield. with per-
haps a question whether such valu-
able returns could be duplicated in
the high-grade field at this time.
Mr.. Lisman recalls that the last OF
the higfl-priced financing by the rail-
roads of the country. at the close OF
the civil war, are maturing or have
recently been paid on.
Civil War Times Compared.
The following is the list prepared
with the price prevailing now and the
price in civil war times: