The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1922-06-10

muftcet conditions which Inns taben
plncetv since That time. should
rates work TO lower levels, the In
weston whose bonds have been call
ed VIII he faced with the necessity
~ %reinvestine his capital In securl-
ties which will give Him a con-
siderably reduced income Or clsc
or sacrificing his motor Of safely
70 Obtain the yield o. his former
holdings
May Is always an active month
In the municipal bond market.
Borrowing by states. counties.
citfcs ami smaller municipalities
reach large proportions IN that
fionth, since Il il the hesinnine Of
a long period Of open weather
when important construction work
q got uundcr why and must he
financed. This year. May finns
ing for public works reached tho
huge sum o. ti~if.Gfi.sfy, which "
almost so per Gem IN excess OF tile
May. 1871 total. Municipal bonds
issued during the first Ave months
~ the current year aggregate
$3.50. f4s,7 Q as against ysS7. s2s,-
$40 in the corresponding perlpd o.
iaA year. Apparently the 1921.
rfcord tetnt % over sI.40U 600, 400
~ new state and municipal bond
issue- IA going 10 be Al least
eqnniIed by the borrowing Of the
current twelve months.
Mergers
The path 81 mergers has hecn
anything hut plain sailing this
week. In the first place, the STOCK
~ companies which contemplate
mergers II almost always bid up far
beyond Us real value by the pro-
f~cstiOnnls and by oNcr-enfhusiaRic
Spectators who conclude that by
issuing new stock certificates more
production can be turned "a or
more freight carried The inevit-
able result u that after the news
IL ont. tho guiiible public D. left
with the stock. on which the In
sid' r. and the professionals have
rnaped good harvcsts.
The local Lockwood committee
investigation has disclosed comii-
lions in connection with the Re-
public Mhdvaie-Inland merger that
nre anything but inspiring 10 those
who are expected 10 iuy the
stock. Reduced TO simplest terms.
the company which receives sf3 a
slaerc for the stock H. expected to
make money on a capitalization OF
81. after pcddtinR out $1,000 shares
nt $40 each TO professional legal
and underwriting Talent" II II n
big handicap and one that will re-
puire a year or two to overcome.
Labor. Coal aud Railroads
There II not very much danger Of
a nationwide railroad strike ~ a
protest against the dccreasc In tho
wage scale OF the railrnnd workers,
though the Formally ~ "a strike
vote viii doubtless be carried
through to conclusion.
The most serious aspect Of tho
labor situation " In the coal diF.
lricts. where, unfortunately. there
u vet little evidence OF a settlement
Of the lonE-drawn-out strike. Gov.
e-nment experts figure out that tn,
country industry will get through
The month Of June without fceiinr
the coal shortage acuteiy. a. most
OF the industries had large stocks
on hand. hut the pinch VIII come
~ July first or soon thereafter
by hat time the administrator
may come forward with "a deflnits
proposal for the settlement Of ths
strike; governmental activity has
been restricted up to this time "
an cffor. "a prevent skyrockctinl
OF prices by the non-unlon opera
tors and. az a result OF the con
feronces which Secretary Hoover
has had with the principal cuA
operators, there Is no doubt bu
that this end will he attained.
n win also b. remembered tina
ON July first The new freight rat
schedules OF the railroads 20 Int
effect, and "A general advance u
industrial activity "a expected tina
time. ~ the coal strike "a settle,
early in July, the carriers will hnv,
an extremely busy mid-summol
season.