Evening star., 1942-07-14
D. {. Houses 10 Join
Syndicate Bidding
For Pepco Bonds
Competition Offering
OF S.. .000, 900 Issue
Expected Soon
By EDWARD c. STONE.

BY EDWARD 4. SlUNE.
Several Washington investment
houses will join one of the large
syndicates planning to bid for the
coming $4,000 Potomac Electric
Power first mortgage bond issue, it
was learned in the financial Dis
trict today.
The S5,000,00O issue has been ap-
proved by the Public Utilities Com
mission and will come up for COM
petitive bidding in a short time, ac-
cording to latest information. Ap-
proval of the Securities and Ex-
change Commission is expected
shortly.
The new bonds will pay ga per
cent, same interest as paid on the
Potomac Power SIS 100000 issue put
out in 1886. The new bonds will
run 81 years maturing in 1877. AS
a long term issue, the new bonds
will have strong investment ap-
peal.
There is a possibility that some
big insurance company might bid
for and take the entire issue. but
this is hardly considered likely in
the financial district. The S15000,-
600 issue was sold privately to in
surance companies.
Sale Expected in August.
The new issue is not expected on
the market before August ! and
perhaps later. Comparatively speak
ing, it is small issue and will be
taken very quickly. Investment
dealers say Potomac Power bonds
are rated as among the best and
soundest investments in the whole
country.
Several dealers predicted today
that the bonds will be offered
around 108. While that may ap-
pear to be high figure, it should
be recalled that the outstanding
Potomac Electric Power 314s, due
ira 1866, are selling on the Wash
!ngton Exchange at 108, to yield 285.
Bond statesmen say the new bonds
will be more attractive because of
the longer maturity date. They will
probably be sold on basis to yield
between "a and 2.90, it was said
today.
The proceeds Of the issue are to
be used to meet working capital re-
quirements and for fixed capital
expenditures.
Peoples Drug Sales Compared.
Rejecting an unusually good half
year, sales of Peoples Drug Stores,
compare as follows, by months,
with the like 1941 periods:
1912. 1941.
January --S2,453 ,e44.Oe $2,11409675
February 2,243,765.99 1,990,O1457
March - 2,447,o1689 2,144,193.89
April ---- 2,499, ,9o287 2,145 ,856.16
May -- 2606.oss54 2,241 .o9e o9
June -- 1858, ,799.49 2,140,24392
The latest report shows that total
sales in the first half of this year
were 1868 per cent better than in
the same months a year ago.
Peoples Drug stock, listed on the
Washington Exchange, sold recently
at 1871 to yield 919 per cent. The
1912 high mark is 213s.
Riggs Dividends Declared.
The regular dividend due at this
time on Riggs National Bank pre-
ferred stock was declared at the July
meeting of the Board of Directors
held yesterday, President Robert v.
Fleming announced today. The divi-
dend is payable August l to stock
holders of record at the close of
business July 13.
Mr.. Fleming also announced that
dividends on the common stock had
been declared, payable $3.50 per
share on July Is to stockholders of
record July 13. and $3.50 per share
on October IS to stockholders of
record September 80.
The 9th annual convention of
the financial Advertisers Asso-
citation, scheduled for Chicago in
October, has been Cancelled by the
Executive Committee, Washington
members were notified today. This
is in line with similar action by many
other big national associations.
Mergenthaler at New Peak.
Ten shares of Mergenthaler Limo
type stock sold at 35 on the Wash
ington Stock Exchange today, the
highest price in several years. The
last sale was at 32l2. Final bid to-
day was "a, with 35 asked.
One hundred shares of Washing
ton Gas Light common sold today at
14ss, ex-dividend.
The newly listed Washington Gas
Light IS preferred stock came out
today on a l0-share sale at 102, a
new high since the stock was put on
the board. 1t closed at 102 bid and
103 asked.
Riggs National Bank common and
preferred stocks were quoted ex-
dividend today.
Norfolk & Western Railroad COM
mon sold at 1912 on the New York
Exchange yesterday, gaining IL
points during the session.