Evening star., 1929-11-29
Washington Ticker
BY CLINTON COFFIN,

|
Changes in the international none
| tary outlook incident to the interest
rate decline now observed in greater
centers are raising the probability that
steps will be taken shortly in the long
deferred plan to "commercialize" por-
| ton Of the German war reparations
debt. When the allied nations early
this year effected an agreement to hx
! the reparations totals and ANIMALS, a
tentative arrangement was made to
have about 81 900 ,000,0 900 Of the prin-
cipal Of Germany's debt put into shape
for sale to investors of the world in the
form of bonds, interest and amortiza-
ton charges on which issue would be
made a prior lien among the allied
claims against Germany.
There was hope that some large por-
ton Of this contemplated international
bond issue could be marketed in the
United States. but by the time the
agreements were all ratified the COL
lateral interest rate levels In the Amer
ican money market had moved UP to
points that stopped all bond invest
ments temporarily. The commercializa-
ton feature of the reparations agree
ment has not moved since.
However with interest rates dropping
in the United States, and gold accumu-
lating in France, which nation is ira
ulGlOlidily lIlb WOIlu 1GdQCE III IIllAII1R
the habit Of saving and government
bond buying, there is obviously a new
turn in the worlds financial situation.
1t is rather more than probable that
portion Of the great war obligation
overhanging the worlds political rela-
tions will, early in 1880. achieve some
transfer to the field of market invest
ment and enter on the road to extinc-
ton.
George B. Cortelyou, now president of
the Consolidated Gas Co. of New York,
but once private secretary to President
Roosevelt and later Secretary of the
Treasury, was an interested observer of
business routine and arrangements
around the White House executive Offices
this week. Mr.. Cortelyou called on the
President as a member of the delega-
ton of public utility executives. who
presented the summary of capital ex-
penditureS they contemplate making in
their enterprises for 1880, which proved
to be nearly $4,000. .000,000
1T was during President Roosevelt's
first term that we first found it neces-
sary to set up a business of6ce for the
head of the Government" Mr.. Cortel-
you sid after he had. looked over the
expanded executive Offices installed with
the Hoover regime. II had to move the
Roosevelt family clear out of the White
House while the reconstruction was un-
dertaken.
"Mr. Hoover is the first President since |
who has increased substantially execu- |
tive business quarters and personnel. |
But 1t looks to be much the same Joo
that it was IS years ago, though OBJ
viously executive business proceeds with
a little more tension"
Just as industrial corporations cease !
working out new plans for capital stock
increases and rearrangements, railroad
companies considering expansions and
betterments start on the same general
lens of first magnitude up to the In
terstate Commerce Commission in the |
process. The latest project, advanced |
by the Pennsylvania System. calls for |
the issuance of 100000 OF new
stock to stockholders and employees at
par, $50 per share. at time when It's
outstanding capital issues have mar
ket quotation of between $S2 and $85
Next week at Richmond stockholders |
of the Chesapeake & Ohio Will vote |
on a proposal TO split up the outstand- |
ing capital stock of that corporation |
on a 4-for-1 basis, without providing |
any new funds, but with the evident |
purpose Of increasing the marKetaolity !
enterprise. Forecasting commission de-
cisions is fairly common business
around washington, and most OF the
opinion seems to lean in the direction
of expecting official assent to both
steps. Pennsylvania proposals involve
valuable rights to shareholders, but
there are several precedents in previous
commission decisions for letting sucn
rights issue.
AS to the Chesapeake & Ohio pro-
posals. the railroad world continues to
regard them as one more evidence that
o. P. and M. j. Van Sweringen OF
Cleveland and their associates are un-
ceasingly at work to bring about rail- i
road merger of first-class proportions IN |
Eastern territory Chesapeake stock. |
selling around 5000 a share, Is a some
what unwieldy unit to take into stock |
transfers. and an automatically cheaper
figure produced by cutting 1t up would
unuuestionably simplify exchanges and
other procedure that are contemplated
in the merger plan. Sponsors OF the
step do not expect commission opposi-
ton to a move that is merely prelimi-
nary and facilitating to consultations
over which it will still retain control.