Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-01-28

GOSSIP OF
THE STREET

The chief topic Of discussion in inan-
cial circles yesterday was the reported
new SEQ 200, 900 bond issue Of tho
fennsylvonia Railroad. This, OF
course had been foreshadowed by the
recent announcement OF Samuel Rea,
president OF the company, asking the
authority Of the shareholders to in
crease the bonded Indebtedness Of the
company by 800, 900, 600. The action
OF the Pennsylvania management to
make public Offering at this time was
considered highly significant for two
told reason. First, that It indicated
much improved bond market situa-
ton, which. however. was clearly re-
hected in the rapid absorption Of the
Belgian loan and the American Agri-
cultural issue. Secondly, It was ac-
cepted as foreshsdowing the initiative
on the part Of the railroads Of the
country for considerable new financing.
1t 10 understood that negotiations
are already well progressed for the
| financing of several Of the large western
systems. 1t is appreciated. because Of
the rundown condition Of the roads
and the delay Of the government in
making settlement with the different
| systems, virtually all the roads will
have some form OF bonds to sell.
The remarkable side of the invest
ment situation Is the phenomenal ab-
sorption capacity. Many observers
long ago were Of the opinion that the
saturation point was rapidly approach
ing, but since then numerous issues
/ nj f,,ll ttx, lo
mand for the high grade goods with
attractive income basis is as keen as
ever.
,.. w. s.
An interesting compilation Of the
pus'bess ps , OF the oig chain stores last year
nas on mSne oy one OF the promi'
n,, Wv l9rk commission houses:
Lns snows' nespite the DIG stump Oh
ousipcss IN DecemDer, ca es Tor tne
gres'ous months OF i0Zo were IN SUI
ncIent Voiuns TO make the year pan
ncr one 10 lar as sales were concerned
tor .nese eorporations ana mali order
hogses.
sears hoebuck was the only. note
worthy exception reporting total Vaiue
o. mleS s1n- tor 566 lSSo as $Z21ooo'o2o,
asainst *Io' '3eO.oZD IN l9iS: on
tne other hand. Montgomery, Ward 4
20. reportea SAFES OF ?ii2,58U.o2o
asnins. SiVs;od4.5ofi woolworth
~ Tlfo,SlS,Ioi' against $lIo.nd,
wv Chi.ed Sigar stores, *SO,O4u,OOO,
ags'nst So4'ooo,Goo; -. >. NresSee'
Sh 14o'"ll against S4Z ,o0S ,OOl D..
-; fenny S4Z,S46, ,OOo, against S2a, !.
'oo!Soo >. II. kress Co., S2S.9T2.042
against S2S "a 232; Jones Bros. Tea
Cop Slo'o2S,2fl against SIG 800 ;
McCrory stores, 14,390.327, against
Sl2,OSl ,741; American Stores. SOB, =
OoI,5I4, against $76, ,40l $50 and
American Wholesale Corporation, $3S,.
25Z,3l0, against $35 5,345, ZIP.
Must Cut Down the Margin
mission houses, in n special market
letter commenting upon the railroad sit
| uation, remarks that considerable space
Is devoted to the falling off in railroad
traffic and to the reduction in working
forces. More attention might well be
given to the possible reductions in the
operating ratios and to the probability
that the railroads will be able soon to
show substantially improved margin
between gross revenues and operating
expenses. The country generally has
been fed up on very large dollar
|
business done by the carriers, forget
ting, largely that these figures are not
fundamentally a measure of railroad
prosperity. 1t matters not how large
the volume of business may be If that
business Is done on an operating ex-
pense bnsis of from 80 per cent TO 90
per cent.
We consider it of as much Importance
to watch the proportion Of operating ex-
penses to gross revenues as to empha.
size declines in gross revenues as com
of the opinion that the railroads will
ultimately win through to much
sounder position with the present freight
rates as the basis Of earnings.
Declared Exports From France
The value of the exports invoiced at
American consulates and agencies in