Evening star., 1944-12-24
Booker Drafts Plan
For Racquet. Club
Bond Extension
BY EDWARD c. STONE.

OVuu kAlCII91Vu
BY EDWARD C. STONE.
Plans for the extension of $497 ,20t
Racquet Club first mortgage 8 pei
cent bonds for 20 years, from Jan.
uary l, 1945, have been outlined tc
bondholders by Y. e. Booker, who
was chairman of the Protective
Committee in charge of the reorgan-
ization of the club, which became
effective on January /, 1885. The
club recently gave notice that these
bonds, due January l next, will not
be paid.
1t has been known for several
months that the Racquet Club
would not be able to raise the .neces-
sary funds to retire the bonds at
maturity and that some form of ex-
tension would have to be arranged
The University Club leased the Rae
quet Club building in 1886 and
agreed to pay a rental equal to in
terest and sinking fund on the out
standing bonds, and taxes on the
property, but did not assume the
debt.
After frequent conferences with
officers and directors Of the club and
some of the larger bondholders. Mr.
Booker has worked out an arrange
ment satisfactory to the officers II
rs per cent Of the bondholders ac-
cept it.
Chief Provisions Outlined.
The proposed plan provides for the
extension OF the present bonds to
January l, 1865, with interest at 8
per cent; full assumption of the
bonds by the University Club; an
increase in the sinking fund from l
to 2 per cent, or from S5,750 to
$ll 800; and an offer on the part
OF the University Club to purchase
a limited amount of the bonds at
S6o0, plus accrued interest, from any
holder who might prefer to sell than
to accept the extension.
Mr.. Booker, who is resident part
ner in Alexander Brown & Sons,
says the plan has special advantages
for the bondholders. It would obyi-
ate the necessity of forming a pro-
tectlve committee and save holders
Delay and expense which might re-
suit from foreclosure. The extended
bonds would be a much better Sc
cur1ty than the present bonds, since
they would be backed by the full
credit and responsibility of the Uni
versity Club.
The proposed increase in the sink
Ing fund would assure the retire
ment TO very substantial portion of
the bonds before maturity, while
any expenses in arranging the ex-
tension will not come on the bond
holders but on the University Club
At the time of the clubs reorgan-
lzatlon in 1885 there were S575. 900
OF these bonds outstanding. BY
January l, 1914, SIT, 300 had been re-
tired. The bonds sold during the
past year from SIS, low, to 81, high.
Funds have been deposited to meet
the January /, 1945, coupons, which
should be clipped and presented for
payment, Mr.. Booker said.
Capital Trade Sets Record.
Merchants reported last night that
the christmas rush remained un-
abated during the final week and
sales for the holiday season set a
new record by a generous margin.
The Richmond Reserve Bank an
nounced that department store
sales in Washington for the week
ended December 16 were 18 per cent
ahead of the corresponding week
last year, the same gain being reg
istered in the Fifth District.
Sales in the Capital were 2 per
cent ahead of the previous week
this year and up 3 per cent in the
Fifth District. Baltimore sales were
per cent higher but a group of
other cities noted per cent drop.
Washington made the best record
In the district for the four weeks
ending Dec. Is, cumulative sales
being 16 per cent ahead of last
year, While Christmas business in
the whole area was up IS per cent.
Postwar Program Completed,
The United States Savings &
Loan League this week will forward
to all members the completed post
war lending program for home
loans, slum clearance and public
housing.
The suggested United States
Loan Plan" high lights the program.
1t provides for grace period for
borrowers needing it, an interest
rate which drops periodically with
regular payments, assurance of as
sistance in realizing the most out
of the property If the borrower has
to leave town, and covers money in
advance for building materials.
The league sees further rapid
growth in the volume of savings by
patrons and plans to seek legisla-
ton increasing insurance of ac-
counts in building and loan asso-
Citations from $4,000 to $4,000 per
investor
More Dividends Reported.
Directors of Terminal Refrigerat-
Ing q Warehousing Corp. have de-
clared the usual 3 per cent semi
annual dividend. payable December
80 to stock of record December %.
The usual Christmas bonus for en-
ployes was voted and President
Simeon T. Price reported the best
business year in the history of the
company.
Directors of the Security Storage
Co. have declared a dividend of 81
per share on the capital stock, pay
able January 10 to stockholders of
record January 5, Paul Alvey, secre-
tary, announced
Smiths Transfer & Storage en-
ployes received annual Christmas
checks at party at the U street
offices last night. The company has
just leased the 18th warehouse, To-
Gated at Fenwick and Gallaudet
streets N. E.
Bond Sale Adjustment Seen.
The proposed Capital Transit
Sl2,500000 per cent bond issue is
still very much alive, it was learned
last night from company officials,
despite disapproval of the price of.
971a by the Public Utilities Commits
sion and disapproval of the price
and spread" by the Securities and
Exchange Commission.
Since the proposed bond sale was
held up earlier in the week, discus
sicns have taken place between
company officials, the PUG, the SEC,
and the group of underwriters, in
efforts to work out a solution salts
factory to all parties concerned.
L