Evening star., 1932-08-26
POWER FIRM BONDS
ELEAD ON EXCHANGE
Potomac Electric Securities
: Sell Near Recent High
Levels Here.

Willie lIllCICSI IldlIOlldIIS NdS uII SSSC -
to Improvement in the position OF the
North American Co., of which the local
utility is a subsidiary.
Potomac Electric IS sold here today
at lO7, point under prior sale, while
the per cent preferred stock went at
1895. a fraction under the previous
sale Washington Gas SIS. which have
been quite active lately sold off l point
at 1904.
The North American Co. system
with no bank loans remaining, accord
ing to the latest statement and with
the only remaining maturity this year
provided for has a financial position
favorable in comparison with previous
years and q strengthening of its sltua-
ton in relation to the debenture IS
1861. ty reason Of the general rise in
security values.
Loan Liquidation.
Liquidation of bank loans was ac-
complished through payment by Union
Electric Light & Power Co, OF MIS-
souri,, of the amount due North
American for advances to the former to
enable construction of the hydro-elec-
tric development on the Usage River,
which started operation about a year
ago Union Electric Light & Power
sold an issue of S15O00,000 general 5s
to fund its indebtedness to North
American and to provide funds for re-
pavmeut of S6,200.000 first mortgage 5s
which fall due September l.
With that maturity out of the way
the next important obligation consists
of Sl1 ,026000 Union Electric Light &
Power refunding 5s due May l, 1888.
Following that are S3,48l 400 first mort
gage bonds and notes of the 60 Broad
way Building due in 1884. and in 1886
first consolidated 5s of Potomac Electric
Power Co. totaling S6027000, of which
Sl.800,0 600 was held in the sinking fund
at the close of last year. The bulk OF
the subsidiary funded debt falls due in
the distant future.
These consolidated SIS of the local
utility have sold on a steady market
here. with a spread between a low of
100 to the last sale of 103 high for this
year. 1t was not out TODAY in trading
on the local exchange. The approx
mate yield is 465 per cent.
Potomac Electric Power 6s. maturing
in 1858. have varied this year from a
low CT 106 to high Of 108, selling off
only ! point today. The yield on this
issue is approximately 545. The low
for the year was 103I4.
The North American Co. was organ
lied AZ years ago as holding company
and with its initial investments con-
fined chiefly to steam railroad securi-
ties. 1t gradually has expanded its in
fluence in the electric light and power
field, until at present it controls direct
ly or through subsidiaries operating
companies furnishing electricity, gas,
transportation and other services in
ln1r
1889 square miles and having an esti-
mated population of nearly 100000.
The fourth area comprises the Dis
trict of Columbia, which, together with
% other communities in nearby Vir-
gina and Maryland, receive electric
light and power, railway and motor bus
service from the Washington Railway
e. Electric Co., Potomac Electric Power
Co. and Braddock Light g. Power Co.
Auto Industry Hopeful.
Although the seasonal contraction in
production and sales of automobiles
has been more than usually pronounced
this year, particularly in the last two
months, according to Dun'S Review
automotive leaders look for an upturn
in sales during the early Fall months
The first seven months of this year
were said to be exceedingly trying for
the industry Oversold markets both
here and abroad, accentuated by cur
tailed purchasing power everywhere,
contributed to the severe shrinkage in
retail demand.
Production for the first seven
months of this year" Dun's Review
continues, was As per cent under that
of the corresponding period Of 1881,
or 1024.239 units, compared with
itr in Tor AVN RI TfIl
elusive, in 1881. This is lower even
than the previous lowest year since
the war, which was 1921. July produc-
ton this year was only so per cent
of that for the same month last year,
or 1l2,600, against a total output OF
224.424 in July, 1881.
With the trend of definitely turning
to the low-priced field in the ratio Of
81 per cent of the total last year under
$1,000, 10 per cent in the $1,000 to
$4,000 bracket, and not over per cent
in all others, an impending battle Tor
this market looms ahead between the
two major leaders, with a third con-
testant coming into prominence and
still another aSpirant just entering the
arena with the lowest price yet an
nounced.
For the first time in the history OF
the industry, the abandonment OF old,
wornout cars exceeded requirements in
1881 and in a larger degree in the
first half Of 1882. Last year alone
passenger car registrations declined
from 23,O42 $40 to 22,374 800 revealing
a shortage in requirements of 668,04O,
or 65 per cent of the total production
of the first seven months Of this year
Company Reports Loss.
Aviation C0rporatiOn and subsidiaries
whose stock is widely held here, report
ed today net loss for the six months
ended June 30, of 50 565,37l, as COM
pared with a loss Of S729, 480 for the ike
period in 1881 The six months showed
a loss from operations. before deprecla-
ton. Of S574272, as compared with a
profit OF $50 62l in the corresponding
1881 period. Loss after depreciation
amounted to ST ,293228, as compared to
S60l 029 year previously. Deductlng
other income interest earned and olV-
idends) of S224966 against S339,325
in l93l, and adding less On sale Of Sc
eurities of Sl,389.l8l against 5243,243
in l931) S78,799 expenses of parent
company against 1921 ,947 in l93D anc
$29,129 loss on liquidation OF surplus
flying equipment, results In the net loss
reported.
Class I railroads of the country show
sharp drop IN the number Of new
freight cars placed in service, accord
ing to the American Railway AsSocla-
tion, which reported the figure fel
from 1924 for the first seven months
Of 1881 TO 2,25l for the same period this
year.
The railroads on August l this veal
had l $40 new freight cars on order
compared with 1884 on the same day
last year.
The railroads also placed in service
in the first seven months this yea
81 new locomotives, compared with 81
IN the same period in 1851
New locomotives on Oroer on Angus
/ this year totaled 6, compared witt
80 on the same day last year.
Freight cars and locomotives leaset
or otherwise acquired are not included
in the above figures,
The Continental Can Co, Inc Whicl
has plants in Baltimore, hurlock, Md
on the Eastern Shore, and many othe