The Washington times., 1922-06-01
S36,0O0,00O
IN NEW ISSUES
OFFERED TODAY
Bond Market Displays Interest
in New Offering Featured by
Public Utility Issues.
BY MUNROE ROBERTS.

Copyright, 1922. by Cosmopolitan News
Service.)
NEW YORK, June 1.-Investment
bankers who have been waiting for
conditions favorable to the floating
Of a number Of important bond offer
ings should be gratified with the
present outlook for operations Of that
character. Those who have been In
closest touch with the market ex-
press the opinion that all Of the i'm
pediments to the quick absorption Of
attractive new bond issues have been
removed. and predict a buoyant mar
ket for investment securities for the
balance of the year.
A largo number of industrial cor
porations whose outstanding bonds
contain the callable feature has de-
cided to refund these issues by the
sale of new bonds bearing lower rates
OF interest than those which ere now
outstanding. Bonds called for pay
ment in advance Of maturity this
month will amount to over SIS, 900
900, against $4,000. 900 in May and
s., 500, 900 in June, 1921. Among the
most prominent of these called bond
issues are: Eight million dollars Z
per cent notes Of ]. H. Heinz Com
pany; $4,000, 900 Ohio Cities Gas con-
vertible rs; $1.500.000 Palm Olive
Company per cents, and $1,15O,0 900
Manchester Light and Power 6's.
II will he seen that the refunding
of an issue OF per cent bonds with
new bonds bearing 5 per cent, means
a saving at the rate OF per cent per
snnum, which, in the case OF an
S8, 900 900 issue, amounts to $4,000
per year. Business leaders who were
keen enough to foresee these condi.
tions and to secure the callable fea-
ture for the issues of bonds put out
by them. have reaped a good harvest
in the saving OF interest charges on
borrowed funds.
Todays new offerings, which
amount to over $4,000 900. are
featured by public utility issues, the
largest of which Is the $12,500, 900
bonds of the Tennessee Electric
Power Company. The most prom.
inent of todays offerings are as fol-
| lows:
The SIP, 500, 900 Tennessee Electric
Power Company first and refunding
mortgage gold bonds, series A, bear
ing per cent interest at SO and
interest, to yield $40 per cent. The
bonds are dated June l, 1922, and are
| due June !, 1e47.
The $4,000. 900 proir lien and re,
funding mortgage forty-year sinking
fund gold bonds, series B., carrying
a 5i2 per cent coupon and due
January /. 1861, of the Cincinnati
Gas and Electric Company, at 9Shs
and interest, to yield $50 per cent,
by a syndicate headed by the
Guaranty Company Of New York.
| $8,000,0 900 Sutter Basin Company
land mortgage fifteen-year sinking
fund 6 per cent gold bonds, at 81
and interest, to yield $50 per cent.
S3,00O,000 first mortgage twenty.
year per cent sinking fund gold
bonds OF the Robbins and Myers
Company Of Springfield. Ohio. at 96
and interest, to yield ~ per cent
and interest.
S3,2S3,S00 Chesapeake and Ohio
Railway Company 6 per cent equip.
ment trust notes. maturing s252,000
annually from January X, 1923, 10
January Is. 1895, inclusive.
$3.50, 900 Thomas Furnace Com
pany first mortgage 7 per cent sink
|
| 90 and interest to yield 7.10 per cent
| $1,000 twenty-five-year guaran
teed sinking fund 7 per cent gold
bonds due in 1947 of the Transpor.
! tation Building Company, Ltd. OF
/ Montreal, Canada, at 100 and inter
est.
The New York Central Railroad
has applied to the Interstate Com
merce Commission for authority to
issue and sell s25, 100000 OF 5 per
cent refunding and improvement
bonds series c. The bonds are to be
dated October /, 1921, and will be
redeemable on October l, 1851, al
105. The carrier desires to call for
redemption on September l, 1922, ar
issue of $4,000, 900 ten-year Z per
cent collateral trust bonds at 10t
and will pay the same accordingly
applying for that purpose the pro
ceeds from the sale of $26, 900, 900
per cent series c bonds. The rail
road stated in it's application that
no binding arrangements have beer
! made for the sale of the proposed
bonds, but 1t is in negotiation with
]. P. Morgan & Co. for their sale
and, unless the market situation
shall substantially change, it expects
to be able to sell them at a price
which will net not less than ninety