The Washington times., 1922-05-12
PUBLIC UTILITY :
BOND. ISSUES
SHOWINCREASE
New Municipal Issues Coming
Out at Rate Of 500, 900,
900 a Month.


|. Out at Rate Of 500, 1000,
900 a Month.
BY MUNROE ROBERTS.
tcopyrisht. 1922. by tcosmopoiitsn News
ssrvics)
NEW YORK, May 1.-THE largest
and perhaps the most important
market for bonds In not to be found
on the listed exchanges Of the coun-
try. but in the network of invest
msnt security houses which are to
be found in every important finan.
ciai center from tho Atlantic to the
Pacific. These investment concerns
keep In closest touch with general
financial and business conditions,
and are. thsrefore. in a position to
accurately gauge the credit standing
and the borrowing risk Of the cor
porations whose securities they are
requested to buy or underwrite. As
their business 10 practically that Of
q merchant in security issues, they
must follow the first principles Of
good merchandising, namely. to buy
only what they can surely sell at an
advance over their purchase price.
While new municipal bond issues
have been coming out at the rate Of
about Sloo, 900 900 . month, the New
York stock exchange bond depart.
ment has listed no domestic munich
pal bonds. with the single exception
OF those Of Now York city. Public
utility issues also are conspicuous
for their absence, but the two classi.
fications are perhaps the most promi.
nent of the unlisted security market.
Since the first Of the year. accord.
ing to the Dow-Jones compilation.
there has been . total Of sos 1927 400
Of bonds and notes Of domestic pub
lie utility corporations issues sold
In the United States. The coupon
rate, which during 1870 and 1871 pre-.
vailed at to 10 per cent. has gradu-
ally declined TO below 7 per cent,
and quite recently . number Of high.
grade corporation issues have been
flosted at per cent.
II is understood that representa-.
tives Of the government Of Bolivia
are negotiating with New York bank.
ers for q loan Of $4,000. 900 on .
basis OF an per cent twenty-five.
year security, which will be refund.
ing and will be secured by q lien on
tho government railroad. Bolivia has
been In the market for new money
for several months, but previous ne.
gotiations have not been successful.
II 10 stated that . final offer had
been cabled by bankers here to Bo.
nvia and that Developments are sx.
pected within q day or %.
Today new offerings, which arEre.
gate about $1,000, 900, include an i'm.
portant public utility issue. q real
estate mortgage bond issue and q
number Of municipal issues. A new
public utility issue in the amount OF
sx,Soo. 900, that Of the Tri-State
Teiephons Company. viii be offered
In Z few days.
A banking syndicate, headed by
Halsey Stuart. 10 offering an issue
Of $500 900 Of the Central Coal and
Coke Company's first mortgage
per cent sinking fund gold bonds
series 4, at 100, for the bonds which
Will nAtuTc 1870 10 lrk 70
and ut 80 for their maturities of 1885
to 1s<i, inclusive. The company 10
engaged in mining and selling coal
and manufacturing and selling lum'
Der. II IL estimated that the com.
pany owns and controls coal prop.
srty containing 7so. o.00o, 900 tons OF
unmined coal, and timber land con.
tanning 3,i7o,70o.o 900 feet Of mer
charitable yellow pine. The issue will
be secured by Q first lien on property
valued at more than S26 600, 900. The
company's average net earnings OF
tho last twenty years have been ap.
proximately six times interest re.
quirements on the issue.
The most important municipal
bond Offering today IL that Of an
issue Of 31,TS6.ooo Of five water
works bonds Of the city Of Columbus
Ohio, dated March Is, 1S22. and due
serially on December 1. 1898, to De.
cember /, 1s<s. inclusive, to yield
40 to 40 per cent. They are legal
investments for savings banks and
trust funds in New York, Massa.
chusetts and Connecticut and ex
empt from Federal incomes taxes.
An issue Of 100000 serial Z psr
cent gold bonds OF the Trelnhs Re.
atty Company 10 offered today al
psn, yielding from 7.i3 to 8 per cent
according to maturity. The bonds
are non -cailabie and mature from
1924 to 1887.
Other important offerings include
$3.50, 900 short-term 4 per cent notes
Of the county Of Essex, ". j.. issued
in anticipation Of taIes;ss2S0,0 900 80.
rial per cent bonds of st. Claire
county, H., dated May 1, 1929. and
due in 1928 to 1895, inclusive, to
yield $50 to 4.2b per cent.
MortQape Debt In u. s.