Evening star., 1925-07-30
HEAVY LOSS FACED
ON PHONE BONDS
S1,585,0 Convertible IS,
Due August |, Still Out.
w. R. & {. Scars.
BY CHAS. p. SHAEFFER.

The American Telephone and Tele-
graph Co. reports that as of july
u holders of S1,5S5.00 convertible
per cent bonds of 1926 had not get
exercised the conversion privilege ac-
companying these bonds, in spite OF
repeated efforts to call il to their at
tention.
Bonds that are not converted into
stock on or before maturity, whicn
is on August ], Saturday, will be
paid off at face value. But on or
before that date one share of stock
may be had for 500 in bonds plus
30. NO special advantage accrues TO
D01dholders by waiting until August
l before converting, as appropriate
interest and dividend adjustments are
made by the company.
The convertible Is are currently
quoted around s134 and the stock
around 14O. The negligent holder who
1alIs TO exercise his conversion priv
ilege or sell his bond on or before
August will suffer a loss of approxI,
mately $34O per 81, 900 bond.
Railway Common Jumps.
Common stock of the Washinptoa
railway and Electric Co. again fess-
tured the local market today. selling
at III, or a gain Of 4 points oyel.
yesterdays peak. Accumulation Cf
the stock of the North American Co.
al any price, seems to be the ONLY
plausible answer to the upturn, ae
1t Is not held probable, in financial
circles. that the common dividend VIII
De increased. The North American
Co. s holdings in the issue now are
approximately so, 900 shares. leaving
only about $4,000 shares OUTSTANDING
National Mortgage and Inyesl
ment preferred registered increased
stfength, 40 shares opening its mar.
ket at ga. The price later eased
oIi 20 ~, put subsequent selling was
IN wholesale lots
Railway preferred at 81 and Wash
ington Gas al 81, both on restricted
sales, represented the remainder Of
stock transactions.
Bonds were quiet and firm.
Baking Earnings Very Large.
Continental Baking CoInpanv esti
mates that net earnings applicable to
the various stocks for the current year
VIII amount to over 10000. 900. Aft
er provisions for the preferred re
quiren1ent and the original IS per
snare per annum on class A common
oaseo on recent capitalization state
ments, the balance for the combined
and B common would be in the
neighborhood of $3.50 per share. Thus
the earnings on class A for 1926 might
De estimated at about $9. so per share
ana on the class B at around 80 Der
share
AS of May 10, 1925, the company
showed 4sz,762 shares of 800 par
per cent cumulative preferred: 28S.
o54 shares of class A no par value
common, and 1000, 900 shares of class
b no par value common stock out
standing. The company has no direct
funded debt. After provision for the
per cent cumulative dividend on the
preferred stock the class A common
Is entitled TO receive the non-cumu!a-
i've dividend of sS per share per an
mum. AFTER these two provisions both
class A and B common share alike and
ratably an any future dividends. So
| that class A Is assured of receiving
SS per annum more than class E
when dividends are being paid on both
issues.
Educational Committee Named,
7. Hunton Leith, chairman of the
educational committee of the Ameri-
can Institute of Banking, yesterday
named his associates who will assisr
In mapping out the curriculum for the
following year.
Members of the committee who will
serve with Mr.. Leith are: joseph y
Yerkes, Federal National
Bank, vice chairman; Miss Florence
M. Willer, Riggs National Bank, secre-
tary; Francis G. Addison, tr., Security
Savings and Commercial Bank.
Charles D. Boyer, Federal American
National: Miss Grace NJ BrownIev.
District Bankers Association; Harold
w. Burnside, past president, Farmers
Merchants National; James c. Du-
| lfns jr., American Security & Trust
Co.. j. F. B. Goldney. Commercial
National: Edward ]. McQuade. Lib
erty National; James NJ. Mason. Wash
| ington Loan & Trust Co. Ellsworth
Meyer, Franklin National; Mrs. Iail;t
NJ. Sloat and William G.. Winstead.
| National Metropolitan; d. L. Wise
carver, Riggs National; Miss Mildred
C. Woodcock, American Security &
Trust Co.
A course on investments and securi-
ties has been added to the advanced
studies.
Rate Hearing Date Set.
| The Interstate Commerce Commits
sion hearings on western railroad
revenues has been postponed TO Sep
! tember 8 instead of week earlier, as
originally scheduled.
Commissioner Aitchison will preside.
and the first sessions will be held