Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-09
Washington Ticker
BY CLIFTON COFFIN.
Associated Press Financial Writer.


Railroad financial officers and bank
ers are now known to be contemplating
the marketing during 1880 of carrier
pond issues on a scale that has not
been witnessed for several years. The
program is dependent upon the con-
tinuance OF the prevailing low interest
rates on money in the cOuntry's busl-
ness centerS, but there Is a general
expectation in banking circles that rates
will stay down.
During the last 10 months, Inter-
state Commerce Commission records
disclose. railroad new capital has been
provided to a very large degree by
stock issues. partly because bonds were
only doubtfully .saleable, and also be-
cause in many cases the issue Of new
stock by railroads operated to strength
en- the credit status of individual cor
porations.
With call money ranging just above
per cent and time loans available
at per cent and under in central
markets. q period is obviously approach
ing in which sound rail bonds will be
in demand" remarked C. D. Mahaffle,
finance director of the commission
Applications to cover individual issues
haven't yet reached the commission III
any numbers, but the responsible rep
resentatiVes of carrier corporations will
unQueStionably take advantage Of the
opportunity that they are likely 70
have to market sound investments.
AS yet. the actual bond market
seems to be little thin, in spite of
the persistence of low interest rates for
several weeks. That Is, large quantities
OF bonds are not likely to be taken
without price receSsions. Yet, as the
general confidence in the maintenance
OF low interest strengthens. the absorb
ing power of the investment market will
be likely to increase"
New capital investment contemplated
by railroads of the country during the
coming year, as reported by executives
to President Hoover, Is about $780,
100000. 1t is not probable that new
securities viii have to be issued for
all OF that sum, since in part the ex-
penditures will be met out of earnings.
But at least $500, 600 900 of the total
Will have to be raised by security sales,
and 1t now looks as though most OF
this would be done by bond sales rather
tnan by new issues of stock.
Public utility company representatives
undertook . stout defense of their in
duStry'S right to appeal to public opin-
ion when Federal Trade Commission
resumed this week into
the subject and its sallied matters. In
q long series of hearings last Spring
before the commission a number OF
State and national publicity exploits
and educational efforts of the various
organizations representing light and
power interests were critically dealt
with IN the Trade COMMISSIONS exami-
nation. Yesterday the enterprises most
concerned were given opportunity to be-
gin their defense
Bernard r. Weadock, special counsel
for the joint committee of utility asso-
Citations undertaking the defense. argued
that the great power and light distribu-
tors were completely justified in utiliz-
ing all the channels of information
possible Ito assist In securing public
understanding of the necessity for ex-
pansion and development to keep pace
with the Nations growth" He said that
the industry felt itself called upon to
contend with an organized and COM
prehensive campaign of hostile propa-
ganda on the part of individuals and
which seek Government
ownership Of utilities, and he upheld
the educational campaign as having
been fair and reasonable.
This Is only the beginning Of argu-
ment on public utility policy. but on
the day It began O compilation Of pub