Evening star., 1927-05-07
NEW STOCK ISSUE
IS FAR OvERSOLD
Books Close Today and Final
Reports viii Reach Of
ficeS Monday.
BY EDWARD C. STONE.


While the officials Of the Potomac
Electric Power Co. naturally prefer to
await the final totaling of the sub
scriptions for the forthcoming issue of
81 500, 600 512 per cent preferred stock
with the possibility of a maximum of
S5 900 900. it is generally agreed on
the street that the issue will be very
heavily oversubscribed.
The concensus of opinion is that the
company will find it desirable to1 sell
the maximum amount of the author
i2ation and that the subscriptions will
far exceed that amount.
over so banks and brokers have
been authorized to receive subscrip-
tons. Remembering the limited allot-
ment made on the last issue of pre-
ferred stock, compared with the
amount of subscriptions, many of the
subscriptions for the present issue
have been greatly enlarged, and it is
believed that on this offering the com
pany will be much more generous to
the larger investors, who were hardly
considered in the placing of the last
issue.
Many subscriptions have been re-
ceived by the company, but brokers
and bankers generally are Withholding
their tenders until Monday. the final
day for the receiving of orders.
Held in High Repute.
The securities of the Potomac Elec-
trio Power Co. are held in high repute
as the earnings are constantly in
creasing this dispite concessions in
prices voluntarily granted by the com
pany. All the issues so far sold have
been largely oversubscribed, investors
recognizing the strong position of the
company and the practical certainty
of continually increasing business.
The first Offering of stock in the
company at public sale was in 1925,
when S2.00000 6 per cent preferred
stock was offered the public and six
times oversubscribed.
An interesting item in connection
with the operations Of the company is
an increase in gross earnings OF So,
091 900 for the l. months ending Feb
ruary 2S. 1927, as compared with
total gross Of $4,934,765 in 1921. The
companys average annual net income
during the last five years, after pay
ment of all operating expenses, MAIN
tenance, depreciation, taxes. interest
and other charges, exclusive of div
idends, has been $I,772, ,445.31.
B. & O. Net Far Above 1926.
After having held practically even
with the preceding year for the first
two months Of 1927, Baltimore Il
Ohio's gross revenues in March gained
s1,435.914, or nearly per cent. chiefly
because of the prestrike coal move
ment and the high rate of output from
the steel and cement mills in its ter
ritory Net railways operating income
of S4.205.9 .965 was an increase of 81 ,1OS,-
or
rate of gain not likely to be soon re-
peated.
Under ordinary circumstances the
B. & O. counts on earning its dlVi-
dends in the second half Of the year,
for which reason the actual earnings
on stock for the first quarter are of
no particular significance. 1t is of
some Importance, however. that the
balance for sommon dividends at the
end of that period was roughly $1,000
900 greater than at the same date last
year.
Crissinger Notes New Conditions.
Gov. d. II. Crissinger of the Federal
Reserve Board is author or an article
in Trust Companies Magazine on the
Significance of Changes In Character
of Member Bank Assets and Employ
ment OF Bank Credit" The magazine
says as an introduction:
Earnest consideration of the Federal
Reserve Board as well as of expert
enced bankers is centered upon well
defined tendencies and changes in the
operations of member banks, chiefly
as evidenced by increased use of bank
credit in longtime investments and
loans on securities as distinguished
from commercial loans, the growing
proportion of liabilities in the form of
time deposits together with decrease of
reserve ratios, as well as decline in
volume of assets eligible for rediscount
at the Federal Reserve Banks. These
developments receive particular atten-
tion in the last annual report of the
Federal Reserve Board. Notwith-
standing such changes the volume of
eligible paper in the hands of member
banks, according to Gov. Crissinger, is
ample in the aggregate to meet all de-
mands that are likely to arise.
Municipal Issues Popular.
The taxpayers of 161 communities
distributed throughout 33 States
voted to issue bonds aggregating
$75,77S,049 during the month of April,
according to reports published in
the Daily Bond Buyer. The total
amount of bond issues voted during
April, 1926, was SIC .399 ,404.
4 A tabulation of the total amount
of bonds approved by the voters dur
ing the first four months of 1927 and
during the corresponding period of
1926, is given below:
1927 1926
January ...... 81 ,909,900 5 5,506,000
February, -. 1926, 500 22.296,212
March ........ 23,615.O72 44.250,90o
April ........ 75,77S,049 76,399, ,404
Totals. SIZE, ,629.521 $14S,452,516