The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1928-12-07
us. ANNOUNCES
TWO NEW
ISSUES
BY HARRY GUSACK
Financial Editor


a half billion dollars, which will be
placed on the financial market De-
cember Is, were announced today
by Secretary of the Treasury Mel
lon.
The first issue will be a nine
months offering of $500. 900 ,00G,
maturing September Is, 1929, and
the second a twelve-mcnths' offer.
ing, maturing next December. Both
will be certificates of Indebtedness
The interest rate is somewhat
lower than the last two issues OF
| securities, which bore ~ and Al
per cent, due to slight improve
rnent in the position of Government
bonds.
THE Treasury will accept in pay
ment for the new certificates at
par, Treasury certificates of ihdebt-
edness, OF three issues, which ma
lure December Is Secretary Mellon
said. Subscriptions for which pay
ment is to be rendered in certifi-
Gates of indebtedness maturing De
cember Is, will be allotted in full up
to the amount OF the respective
offerings
Mellon pointed out that about
$3.50, 900 900 in certificates mature
December Is. About $50, 900, 900 in
interest on the public debt becomes
payable the same day.
War Debts Due
The offerings, together with cash
on hand, will provide for the Treas
ury's requirements up to March Is.
when another big financing opera
ton will take place. The difference
between the new issues and those to
be retired automatically will reduce
the public debt about $40, 900 900.
In addition to the bond refunding,
the Treasury will obtain approx
mately $96, $40, 900 from foreign gov
ernments on the war debts Deem
Der Is. Income tax payments on
that date. will approximate S440,U00.-
900, according to the present indica
ton. A large per cent of the debt
payments will come from Great
Britain.
Applications for purchase of the
new certificates will be received al
the Federal Reserve banks. Certit
icates will be issued in denomina
tons of $500, $1,000. $1,000. $4,000
and 100000. Interest on the shor:
issues will be paid March IS and
september / 5 and on the year issue
June Is and December is.
| both as to principal and interest
! from all taxation now or hereafter
! imposed by the United States, any
| State or any possessions of the
! nited States. except estate taxes
/ graduated additional income tax
| commonly known as the surfaces.
! and excess profits and war profits
| taxes" the circular said.
/ 1t was anticipated at the Treas
| ury Department that subscriptions
/ to the new issues would exceed
| 81 .0O0, 900 ,0O6. necessitating grad
! uated ALLEGATION by Federal Reserve
| districts. Virtually every Govern
| ment bond issue since the war has
| been oversubscribed.
Railway Income Gains
| The net railway operating income
/ of the Class / railroads in October
/ amounted to S166, .162. which. for
! that month, was at the annual rate
/ of return of 5.SS per cent on their
| property investment. according 10
| reports filed by the carriers here
/ yesterday with the Bureau of Rail
! way Economics. In October. 1927,
/ their net railway operating income
| was $134, 04O,214, or 4.85 per cent on
| their property investment.
| Gross operating revenues for DC.
| tober amounted to $617, 782, 406. COM
pared with 1851 ,OO6,2 2S in October,
| 1927, or an increase of 6.3 per cent.
| Operating expenses in October to-
tailed S401 .159,6S7, compared with
| 1899 ,841 1898 in the same month in
| 1927, or an increase of three enths
| of ! per cent. Glass / railroads in
October paid $39, 0S2, 1859 in taxes, an
! increase of IA per cent over the
same month in 1927. This brought
! the tosal tax bill of the Glass l rail
roads for the first 10 months in
/ 1928 to 1924, 653 500, an increase of
! $777,047, or two-tenths of / per
cent above the corresponding period
! of 1907