The Washington times., 1922-07-20
RAIL EARNINGS
ON BONDS SHOW
B|CPERCENTAGE
Current Reports Reveal Some
~ Roads Profit Well on
Fixed Charges.
By MUNROE ROBERTS.

Copyright. ls22, by Cosmopolitan New
"a Service.)
NEW YORK, July 20.-Investort
in railroad bonds have very much u
encourage them in the current earn
ings records Of the principal railroad
systems Of the country, and these
should improve rather than reced,
during the balance of the year
Payment Of interest on bonded deb
constitutes a prior claim on the
earnings Of the roads over dividend,
and some other channels OF expendi
ture. Some Of the railroads nr.
earning from $50 to 800 per cent q
their fixed charges and. from al
indications, there is no reason L
doubt their ability to maintain per
manently the interest payments or
their securities.
A glance at the current reports o
some Of the railroad systems, witt
this idea in view, offers many
reasons for encouragement. Basec
on actual returns to date, the esti
mated net earnings of some of tn,
leading railroads in relation to thei,
fixed charges are as follows: Anr
Arbor. 1877 per cent: Atchison, 2.29
Atlantic Coast Line, 2.13; Baltimor,
and Ohio, 1.67; Buffalo and Susquc
hanna, 2.14; Central railroad Of New
Jersey, 1.27; Chesapeake and Ohio
1874; Chicago, Burlington anC
Quincy, 3.S2; Rock Island, LAO
Cleveland, Cincinnati, Chicago ant
st. Louis. 2.06; Lackawanna, 2.35
Erie. 1923: Great Northern, 1877
Illinois Central. 2.56: Lehigh Valley
2.22;' Louisville and Nashville, 2.46
New York Central System, 1.67
Norfolk and Western. 394. North
ern Pacific, 1.49; Pennsylvania. 2.05
Pere Marquette. 242: Southern
Pacific; 2.52; Union Pacific, 2.6l an,
Southern railway, 1.60 per cent.
Latest dispatches from Canada in
dicate that the new $500. 0.000, ,0O
Canadian loan will not be placed OF
the market until the results OF the
present crop season are fairly def
nitely known. A strong syndicate o
Canadian bankers, with or withou
the assistance of investment organi
cations on this side of the line, will
guarantee the underwriting of tn,
new loan. 1t has not yet been def
nitely determined what coupon rat,
the new loan will carry. a great dea
depending upon the condition OF tn,
money market at the time it Il
floated. The credit of the Canadian
government Ia we'll rated and Cana
dian bonds are popular in our mar
ket, a great many of our investors
being former Canadian citizens. Tn,
last Canadian loan, which carried {
5 per cent coupon, was well received
and II remains to be seen whether
another big loan could be floated OF
that basis.
Latest reports from Washington
are to the effect that the Treasur,
Department will announce anothei
issue of Government securities dateC
August /. 1922. On that date ap
proximately $215. 900 new out
standing notes will fall due. Tn,
amount of the expected issue may b,
made public before the end of tn,
week, but II is expected that II will
not be less than $500, 900. 900. TIL
Government, It is understood. is con
templating an exchange OF other Sc
Will LoI NhN ' IL
tory Ak per cent notes.
An issue of s1.s35. 900 city Of Yonk
ers, N. Y. Az per cent bonds ha
been purchased by a banking syndl
cate headed by the National Cit,
Company. The bonds, which matur
from 1925 to 1862. are for general i'm
provement purposes, as we'll as 70
refpnding, and will be sold at price
to yield 4.20 to AIS per cent.
William r. Compton Company 1
offering a block of 100000 State O
Louisiana port commission serial
per cent gold bonds, due 1910 to 1870
inclusive. at a price to yield 40 pc
cent. These bonds are a general OF
legation of the State of Louisiana is
sued by the board Of commissioner
of the port of New Orleans.