Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-16
Washington Ticker

Associated Press Financial Writer.

The Forthcoming issue Of German
reparations securities VIII bear tne
highest Grade collateral within the pow
er Of the republic to offer.
As governed by The Hague protocol,
annuities to meet the obligation VIII De
derived from two sotrces-nameiy, the
German railway company tax and the
German budget.
denced by q certificate Of indebtedness
delivered to the Bank for International
Settlements as trustee OF the creditor
powers acknowledging its liability. Pro-
ceeds Of this tax are $50, 00o,0 reichs-
marks annually.
Concerning the latter source the Reich
government viii undertake to assign
certain revenue (customs and certain
taxes on consumption) for the service
of the certificates, and as far as they
may be exchanged into negotiable
bonds, for the service Of such bonds.
This assignment constitutes negative
pledge, and Is ruled by the following
conditions:
CAY 1.-THE Reich will not create any
charge on the assigned revenues for
any other loan or credit without the
consent Of the Bank for international
Settlements. II any such charge Is Gre
ated on the assigned revenues With the
consent Of the bank, the charge for the
annuities payable by Germany Will rank
ahead Of any such other charge.
CD "If at any time the total yield OF
the assigned revenues should fall below
$50 per cent Of the highest budgetary
contribution payable by Germany, the
bank may require that additional rev.
enues suficient to assure the iInmedi-
ate restoration of the yield to the above
percentage be assigned and the German
government will forthwith comply with
that requirement accordingly.
Co Should the German government
change the system Of collecting any Of
the assigned revenues, then the receipts
secured to the Reich by the new sys-
tenn will be assigned In substitution for
the original tax"
Thus, 1t win be seen the loan viii be
q direct obligation Of the German gov
tional Settlements acting as trustee and
agent.
It is expected the offering will be
brought out prior to July IL, to an
amount approximating 100000 900,
about SIS, 000, 600 Of which will be mar
keted In this country. The coupon Is
expected to bear q rate Of about 6h
per cent, with the offering price around
95, the equivalent of O per cent re-
turn. It win take priority over all Ger
man securities with the single exception
Of the external loan of 1924, The life
Of the security viii be about % years,
1t Is believed.
The National Association Of Manufac-
turers Is voicing vigorous opposition to
the proposed Dill patent bill. This
measure proposes that In any suit for
| infringement Of patent rights, 1t shall
be complete defense to show that the
complainant Is q party to any agree
ment, understanding, license or cross
license agreement In violation of the
antitrust laws.
Through its counsel the association
declares its opposition Is based on
fundamental grounds of law and public
policy. 1--WE submit" says the body.
that the pending measure is pregnant
with litigation, and threatens not only
the security Of established property
rights by Withdrawals of effective
patent system upon which the structure
Of American business Is predicated, and
the efficiency of the Federal judicial
system, through an enormous increase
in complicated and prolonged litiga-
ton"
The manufacturers asserted the COM
plexity Of patent suits was exceeded
only by those arising under the anti
trust laws. The theory underlying the
entire patent system, they claim. is
that certain monopolies are commend
able and are to be encouraged and pro-
tected. The theory underlying the anti
trust laws Is that certain types Of
monopoly are odious, and are to be
prohibited. 1.-THE pending BILL" they
argue, proposed that the two most
different types Of litigation, arising out
of distinct and opposite conceptions of
public policy, are to be thrown together
and scrambled in the Federal courts.
The association further claimed the
remedies now provided for violation
Of the Sherman act are adequate, citing
the Governments recent filing of suit
against the Radio Corporation as suffl-
Gent answer to the suggestion this
legislation was necessary.
Argentina is offering an excellent
market for American foodstuffs, an
nual importations amounting to about
$4,000, 900, the Department of Com
merce announces.
American rice and eggs are in great
est demand but other important items
include apples, sardines, dried prunes,
dried fruit In general and cottonseed
oil. There is also q growing demand
for manufactured foodstuffs such as
certain varieties Of breakfast foods and
various kinds Of canned fish such as
lobster and crab meat.
The United States Is also the princi-
pal sources Of raisin imports, which
total about 100000 each year.