Corporate Securities

Corporate Securities

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This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1920 edition. Excerpt: ...the New York Stock Exchange market prices of the guaranteed and unguaranteed bonds of this issue are the same. See note 17, below and note 44. See also Chapter II, note 38. 17 Three examples from different industries show the strategic importance of many subsidiary companies which fail in themselves to earn their interest charges, but whose bonds are reasonably secure. Railroads. The San Antonio and Aransas Pass Railway occupies a strategically important position with reference to the Southern Pacific Company's Texas lines. Its First Mortgage 4 per cent Bonds of 1943, are guaranteed principal and interest by the Southern Pacific Company. The San Antonio and Arkansas Pass Railway itself has earned the interest on its bonds only one year out of the last five. In fact, in 1914-15, it barely paid the direct costs of operation. Yet its strategic importance to the Southern Pacific Company's lines is such that the guarantor company very wisely meets the bond interest deficit. Public Service. The Westchester Lighting Company has a franchise for a part of the Borough of The Bronx and supplies gas and electricity north of New York City as far as North Kisco. During several years the company has failed, according to its published accounts, to earn its fixed charges, although its territory is rapidly developing and it bids fair to be a very valuable component of the Consolidated Gas Company. A large part of the bonds of the Westchester Lighting Company are guaranteed by the Consolidated Gas Company, and because of the strategic importance of the property to the larger corporation the credit of these bonds is unquestioned. Industrial. The National Starch Company, although it has been a financial failure and has accumulated a large deficit, holds the...show more

Product details

  • Paperback | 74 pages
  • 189 x 246 x 4mm | 150g
  • Rarebooksclub.com
  • United States
  • English
  • black & white illustrations
  • 1236862023
  • 9781236862020