Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-03-08
try. Despite the maintenance Of

dustry. Despite the maintenance Of
operations at near 80 percent of ca
pacity, 1t was estimated that the
present quarters production would
fall five to ten percent below that of
the corresponding period last year.
With most companies making bet
ter adjustment Of output to current
consumption than a year ago, the in
dustry is expected to avoid the sharp
decline in operations which marked
the spring of 1923.
An event of far-reaching import
ance to the transportation world was
the rejection by the interstate COM
merce commission last week of the
gigantic nickel Plate" merger plan
on the ground that its financial
structure was unfair to stockholders
of the participating companies. The
transportation features of the pro-
posal were approved.
Unless some way is seen to link the
properties by recasting the financial
plan, powerful banking interests
closely identified with the Nickel
Plate and who control many other
railroad investments believe that a
serious check will be given to the
whole program Of major railroad con-
solidations. Other railroad and fin
ancial interests, principally those
directing pending merger projects
hold the commissions ruling has
clarified the problem and will guide
the way to consultations in accord
with the public interests.
Weekly Bond Review
New York, March 7-(By The AS
ISOLATED Press.)-The overwhelming
wave of liquidation which struck the
securities markets last week did not
spare bond trading and prices SUI
fered the sharpest reaction IN many
months. Some OF the selling origi-
mated on the part of distressed stock
traders who were compelled to raise
funds in the quickest way possible
for the protection Of their accounts.
Investment as well as speculative
holdings were thrown on the mar
ket.
Railroad liens, which had been ad-
yanced on speculative prospects ot
merger developments, bore the prunl
of the selling attack which tollo"eu
the upset of the Nickel Plate con-
solidat.on plans. With the exception
of the Chesapeake and ONO CONVEX
tibes. all the issues involved III the
Van Sweringen project were nam
mered down to six points, maklng II
regular recovery later on indications
that another attempt would be maze
70 rebuild the merger on new nm
ancial structure. The victory of the
chesapeake bond holders in opposing
the consolidation and the hope OF bet
fer terms in a new deal carried the
roads convertible IS up 10 points
during the week.
Any doubt as to the influence OF
merger discussions upon railroad
bonds was removed by the action OF
these issues after the unexpected re-
lection of the Nickel Plate appnca-
tion by the interstate commerce COM
mission. Obligations of virtually
every road which has figured in con-
solidation talk were thrown on the
market at lower prices. but ike the
Van Sweringen issues, many OF theh
were bought back when a more OPP
timistic view replaced the hrst leel-
ing of pessimism which folloWed the
Nickel Plate decision.
Although the dramatic turn IN the
course of the stock market aroused
fears that a large volume of ne"
would be held in allegiance.
bond offerings last week continued
slightly above the average of SluO,-
600 900 weekly which has been main
tanned this year. Public utility no
tations. including s36,000,0oO for the
public service compa-
nv, made up the bulk of the SlO3'-
900 900 total, which was practlcaliy
the same as the preceding week.
Several issues which are scheduled
for early flotation are interest ing
chiefly for their character rather than
their size. A s5,000,000 loan for the
Roman Catholic Church of Bavaria
will represent the first public Dor.
rowing of a church through wan
Street channels. Another new type
Of security will be the Sl4,O00,oVO
bond issues of the port of New YORK
authority, which will be secured by
first lien upon revenues from bi-state
bridge properties.
In investment circles. the future
trend of stock prices will be watched
closely for it's effect upon the pono
The drastic downward read
justment which took place last week
embraced both stocks and bands, but
observers pointed out that past de-
,ltnes in the stock market frequently
have served to increase the volume
Of investment bond buying.