Evening star., 1936-07-20
POWER BOND ISSUE
IS BEING PAID OFF
Holders of Potomac IS Are
Given Funds Ahead of
Redemption Date.
BY EDWARD C. STONE.

BY EDWARD T.. STONE.
Financial district investment firms
reported today that many holders OF
Potomac Electric Power general and
refunding 6 per cent mortgage bonds,
which have been called for redemption
on October /, this year, are already
turning in their bonds in large num-
bers.
These Potomac Power bonds were
due April l, 1853, but the directors OF
the company elected to exercise an
option and call them this year, and in
this way make substantial saving In
snterest. Their payment was therefore
excluded in the new S15,000,000 bond
issue, paying 3A per cent, which was
recently placed on the market at 1o4.
Although the redemption date Is
October l, the power company is pay
ing them off in advance of that time
at los, plus accrued interest to OCTOBER
1. In this way the bondholders are
obtaining both the principal and the
interest in advance, and can reinvest
the funds at once, as they see fit, and
not wait until Fall. This is why the
bonds are being turned in SO rapidly.
J.E. Tenly, treasurer of the Potomac
Electric Power Co., states that the
bonds surrendered should have at
tached all coupons maturing subse-
uuent to october l, 1886, and should
be accompanied by ownership certifi-
Gates required by Federal income tax
laws and regulations. Registered
bonds should be accompanied by ex-
ecuted assignments or transfer powers.
The City Bank Farmers Trust Co.,
New York, is trustee Of the bonds,
but the Washington banks are accom-
modating their customers in making
the collections. While there is ample
time for turning in the remainder Of
She bonds, yet it should be kept in
mind that after October l all interest
ceases. Both bankers and investment
dealers are urging their patrons to act
at once to their own advantage. 1t is
rather unusual that interest in full
to redemption date, together with the
principal, are paid so far in advance.
Heimann Lauds Bonus Thrift.
In his monthly review. received by
the Washington Association of Credit
Men today, Henry Heimann, manager
Of the national association, says:
1T is somewhat heartening to note
that the severe years from which we
have emerged have taught at least a
reasonable measure of appreciation of
a need for thrift. I refer to the atti-
tude of our citizens generally and
especially to those who were recip-
tents of the bonus payments. After
considerable travelling in various parts
Of the country during recent weeks,
am convinced that the bonus was
not dissipated to the degree that char
acterized the distribution some years
ago.
Some of the cash went toward a
liquidation of indebtedness, some to-
ward a replenishment of personal in
ventories and some benefited automo-
bile and retail lines. But greater
proportion seems to have been held in
reserve to meet emergencies. The
gradual release Of this bonus money
will be felt over considerable period
Of time in many lines of industry"
Bank Stocks Moved Upward.
New York bank stocks, which are
widely held in Washington, continued
to move upward last week, according
TO Holt, Rose & Troster. The aggre-
gate market value of Is leading is
sues on July II totaled $1,901 ,255, 900,
compared with 1859. Ia, 900 at the
close of the previous week, an in
crease Of over s32,ooo,00o or 1.72 per
cent.
The average current yield of the Is
issues of 3.42 per cent compares with
a yield of 345 per cent on July 10.
The current market value is now / AS
times known book value, the review
says.
Insurance stocks In the New York
City market forged slowly ahead dur
ing the week. The aggregate value
Of 20 leading fire and casualty insur-
ance issues on July II totaled $644,-
$4,000, compared with S643, ,780, 900
at the close of the previous week, an
increase of $559,oOO, or 0.09 per cent.
Financial District Gossip.
Fred Mckee, vice president of the
Security Savings g. Commercial Bank,
is improving steadily from slight in
fection, which became so troublesome
that he went to a hospital for treat
ment.
Harry Wheeler, one Of the veteran
has gone to New Hampshire to spend
a months vacation in the White
Mountains. He has been q regular
Granite State vacation visitor for
many years.
Lobdell & Co., bidding alone, were
awarded $375, 900 general improvement
bonds by Richmond, Va, on q bid Of
1o4525 for 2ks. Frederick e. Noting,
Inc, was second of the % bidders, at
1o4.47. The bonds, due July l, 1882
1858, are being re-offered to yield 0.90
to 2.15 per cent.
Atlantic Coast Line Railroad re-
ports for five months ended May 81,
1886, net income of $828,308 after
taxes and charges, equal after divi-
dends on 5 per cent preferred stock
TO 81 a share on 1928, ,427 shares OF
common stock. This compares with
net income in first five months of 1885
of $195,623 or % cents a common
share
Today's Trading on Exchange.
Capital Transit stock again sold at
II on the Washington Stock Ex-
change today, maintaining the new
high for the year reached last week
American Security & Trust stock sold
at 25s and Washington Loan & Trust
came out at 223A.
Real Estate Mortgage g. Guaranty
preferred moved at ~ and a single
share of Washington Railway & Elec-
trio preferred appeared on the board
at 11012. Potomac Electric Power 51a
per cent preferred moved at 111A and
the per cent sold at 11115. The final
sale was two shares Of Mergenthaler
Linotype at 4515, OF half a point.