The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-06
BANKERS TO OFFER
GRAND TRUNK ISSUE
Syndicate Buys S25, 100000 of
Twenty-Year Bonds Of
Canadian Road.
GOVERNMENT INDORSES
Proceeds Of Loan Are to Meet
Small Maturity and to
Provide Capital.

The Canadian Government closed yes
terday the sale to VIM. A. Read &
CT. of s25,000.000 Of twenty year per
cent. sinking fund gold bonds of the
Grand Trunk Railway of the Canadian
National Railways system The bankers
were organizing last night a distributing
syndicate. which will offer those bonds
to the investment public to-day. As
ISOLATED with the purchasing bankers
in their flotation will be. 1t is under
stood, the Guaranty Company. the Ma
tional City Company, the Bankers Trust
Company. Lee. Hisginson & Co.. Blair
s. Co. and the Continental and CONNER
cial Trust and Savings Bank of CHI
cago. No announcement of the offer
ing price of the loan was made yester-
day. but 1t Is understood that it's terms.
probably in the neighborhood of par.
will be given out to-day.
The purpose of the financing in par.
is to meet small maturity approximat-
ing 100000 and in part to provide
additions to the company's working cap
ital. The new bonds bear the direct
guarantee by Endorsement Of the Gov
eminent Of the Dominion of Canada.
covering principal. interest and sinking
fund. They will be dated October 1,
1920, and mature on October /. 1910. An
annual sinking fund of 100000 is pro-
vided to purchase bonds offered In the
open market at prices up to par and in
terest. The bonds cannot be called for
| fifteen years.
The first important maturity of the
Grand Trunk falls due in October. 1921,
when 100000 natures. The Grand
| Trunk has not become officially part
of the Canadian National Railway sys-
| tenn. but it will become such as soon as
| the present price arbitration shall have
been completed.
The Canadian National Railways is
| the instrument through which the Do
nlinion of Canada will take over and OPP
crate all of its Government railroads.
! The roads constituting the new system,
which will have $4,000 miles Of line and
be the largest railroad property under
enc management In the world. are the
| Canadian Northern, Grand Trunk. Grand
Trunk Pacific. the Intercolonial and the
National Transcontinental.
This offering is the fourth Of Cana
dian National Railways securities In this
market by VIM. A. Read G. Co. this year
The three other offerings since January
l were as follows: The first in January
took the form of s7,5O0,000 of ten year
serial equipment trust certificates of the
Canadian Northern Railway; the second
was an issue in March of s12. 100000 Of
tTTee aHu i've year ~ per cent. HOteS
Of the Canadian Northern Railway,
which also were guaranteed as to prin-
cipal and interest by the Dominion. and
the third was an issue Of s15, 100000 Of
fifteen year sinking fund equipment
trust certificates of the Canadian North
ern Railway in May.
The Sears Roebuck financing. which
will aggregate $4,000 900 instead Of the
$40 10000 figure first mentioned. will
take the form Of notes to be offered on
an per cent. basis. Interested In the
syndicate will be the Chase Securities
Corporation and Goldman Sachs & Co.
Advantage OF the present market for
bonds to complete the distribution to In
vestors of the unsold balance Of Sinclair
notes was taken.