Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-25
WASHINGTON BOND
MARKET IS Strong
Confidence of Investors in
Local Business Is Re-
I Elected in Prices.

servatiens Of investment experts here.
washington bonds. especially of pub
lie utilities, are selling higher than sirni-
lar bonds Of other localities generally,
the investors of this city are interested
In local investments, have formed a
habit over years Of experience of put
ting their money into Washington con-
Germs, and continue to do so.
High Credit Position.
This Is all considered a tribute to the
high credit position of the local in
yestmentS, which generally give a lower
yield at higher prices than utilities
bonds elsewhere, according to a survey
of the figures.
Washington investors have many
times preferred something they could
see. 1t was pointed out. 1t has been
almost inherent in the local investor
to get at least something on the local
exchange. OF course, those who have
large funds to invest, diversity. and it
Is recognized that many other securi-
ties are held here, but. considering the
situation generally, it was declared that
local public utility bonds are more in
demand here than outside securities,
and do maintain a higher price.
The tendency. it was recalled, goes
back years. when most of the bank
vi Y '
bers of the Washington Stock Exchange
several still are) and formed the habit
of purchasing local securities of a COM
pan whose physical assets and prog
ress are visible here in the home city.
For purposes of comparison. for in
stance, it was pointed out that Column
bia Gas G. Electric SIS due 1852 and
selling at 97s4 yield Sis per cent;
whereas Washington Gas Light SIS due
1850 priced at 10012 yield 4.9S per
cent.
Columbus Railway Power g. Light,
4l2s due 1857 are yielding Sis.
Baltimore Securities.
Another interesting and perhaps more
apt comparison showing the strength
of local utility bonds is shown by fig
ures from the United Railways g. Elec-
trio Co. of Baltimore and the Capital
Traction Co.. of this city.
While the Baltimore company first
mortgage 4 per cent bonds, due 1949,
are selling at so. with a yield on an
$40 per cen basis. the Capital Trac-
ton Co.'S SIS. due l947, have been selling
at 9B11. at a sos per cent yield basis,
but are temporarily off to 95la On a
basis of $50 per cent.
Or take for instance West Penn Rail-
ways. operating in a Pittsburgh suburb,
whose first mortgage SIS, due 1881. with
only two years to run and selling at
65-the yield there is over 10 per
cent.
Move to Curb Swindling.
While local financial circles are hop
ing that the next session of Congress
will pass a fraud law. much interest is
being shown In reports from the annual
meeting o fthe National. Association of
Securities Commissioners at St. Paul.
where more laws to check swindles are
being urged.
Much more stringent legislation to
prevent interstate swindling was
phasiZed by Jesse G.. Craige of Lincoln.
Nebr.. president of the association, ad-
dressing securities commissioners from
80 States.
Most Safes" he said, "have legisla-
ton which binders and limits the &C.
tiyities of the fraudulent securities
salesman. but. unfortunately. many
other States have been slow to realize
the great damage done by such swim
oilers. Within the last few years in
restors have been faced by a far greater
menace than the soliciting type of
securities salesman in the long-dis-
lance, high-pressure type of stock secur-
tiles salesman, who makes use of the
telephone and telegraph and floods
literature"
Before you invest, investigate" was
the warning issued generally to the
public from the meeting, as a keynote
sounded by the president.
All speakers agreed that a compre-
hensive program of public education
was needed so that investors could be
cautioned on the best ways of investing
their funds.
While persons who have the Itch to
gamble on shady stock would never be
benented by such an educational pro-
gram" said President Craig, lit be-
hooves the association to do what it
can to protect the innocent investor"
Delegates to the convention are the
securities commissioners who are State
officials.
Local financial circles have been
making a fight fcr several sessions of
Congress. and still have hopes of enact
ment of a fraud law, which will enable
this city to cooperate with the national
association OF securities commissioners
In their efforts to prevent the sale of
fraudulent and misrepresented Sc
curities.
All the States except seven. and the
District Of Columbia, have fraud laws.
Limit on Securities Deposit.
The time limit for deposit of securi-
ties of Cuba Cane Sugar Corporation
under the plan and agreement for re-
organization of the company has been
advanced to August 30. 1t was an
nounced today by the reorganization
committee. The time within which
holders of subscription warrants for
stock in the new company nay exercise
such warrants has been extended to
and including September g..
Although high wages have in the
past been regarded as a signal for a
falling of in labor efficiency, no such
tendency seems apparent in the present
era of prosperity, says today's issue of
the Business Conditions Weekly of the
Alexander Hamilton Institute.
Since 1919 factory wages have in
creased 19 per cent. At the same time,
factory output has increased 43 per
cent and the cost OF labor per unit has
fallen about % per cent.
This extraordinary increase in. fac
tory labor efficiency, doubtless due part
ly to use of machinery, is accompanied
by evidence of labor contentment. Dur
ing the first five months OF 1929 there
has been a monthly average of only
~. strikes as compared with a monthly
average of 300 for 1919. This absence
of labor disputes may be regarded both
as a contributing cause of labor eff
cheney. and hence high wages, and as
a result Of the contented spirit with
which labor is accepting its share OF
prosperity.
Petroleum Co. Earnings.
Net earnings of the "a petroleum
companies so far reporting for the six
900, q gain of 1913 per cent over the
s45, 277,0 900 reported for the similar
period of 1928.
Again bank clearings are exceptionally
heavy, the total this week, as reported
to Dun's Review, for all leading cities