STATEMENT No. 19.-PURPOSE OF ISSUES OF STOCKS AND FUNDED DEBT BY CLASS I STEAM RAILWAYS AND THEIR LESSOR COMPANIES FOR THE YEAR ENDED DEC. 31, 1937 (EXCLUDING SWITCHING AND TERMINAL COMPANIES) Baltimore & Ohio R. R. Co.: Mortgage bonds... Collateral trust bonds.. Miscellaneous obligations.. Equipment obligations.... Bangor & Aroostook R. R. Co.: Mortgage bonds... Equipment obligations.. Bessemer & Lake Erie R. R. Co.: Equipment obligations... Boston & Maine R. R.: Mortgage bonds... Miscellaneous obligations.. Cambria & Indiana R. R. Co.: Equipment obligations.......... Detroit, Toledo & Ironton R. R. Co.: Equipment obligations.... Elgin, Joliet & Eastern Ry. Co.: Equipment obligations... Erie R. R. Co.: Collateral trust bonds.. Miscellaneous obligations... Grand Trunk Western R. R. Co.: Miscellaneous obligations... Illinois Terminal R. R. Co.: Common stock.. Mortgage bonds... International Ry. Co. of Maine: Mortgage bonds... Lehigh & New England R. R. Co.: Equipment obligations.. Lehigh Valley R. R. Co.: Collateral trust bonds.. Long Island R. R. Co.: Maine Central R. R. Co.: Equipment obligations.... Montour R. R. Co.: Equipment obligations.. New York Central R. R. Co.: Common stock. Mortgage bonds.. Collateral trust bonds.. Equipment obligations.. New York, Chicago & St. Louis R. R. Co.: Common stock... Preferred stock.... Miscellaneous obligations. Equipment obligations..... New York, New Haven & Hartford R. R. Co.: Equipment obligations................ Pennsylvania R. R. Co.: Common stock... Miscellaneous obligations.. Pere Marquette Ry. Co.: Equipment obligations..... Pittsburgh & West Virginia Ry. Co.: Equipment obligations............. Reading Co.: Miscellaneous obligations................ Staten Island Rapid Transit Ry. Co.: Miscellaneous obligations.... Wabash Ry. Co.: Common stock.. Preferred stock.. Western Maryland Ry. Co.: Equipment obligations.......... Total, Eastern district.. Purpose of issue STATEMENT No. 19.-PURPOSE OF ISSUES OF STOCKS AND FUNDED DEBT BY CLASS I STEAM RAILWAYS and Their Lessor COMPANIES FOR THE YEAR ENDED DEC. 31, 1937 (Excluding Switching and Terminal Companies)—Continued STATEMENT No. 19.-PURPOSE OF Issues of Stocks and Funded Debt BY CLASS I STEAM RAILWAYS AND THEIR LESSOR COMPANIES FOR THE YEAR ENDED DEC. 31, 1937 (EXCLUDING SWITCHING and TERMINAL COMPANIES)-Continued Similarly, the rate on equipment obligations and collateral trust bonds issued each year has declined continuously since 1933 and the same is true for mortgage bonds except for the fact that the rate in 1937 (3.86 percent) was slightly higher than the rate for 1936 (3.83 percent). The rate on miscellaneous obligations has similarly declined consistently since 1934. Even giving due weight to the fact that the issues made in these various years are those of different companies, they contain strong indications of a pronounced decline in the rate of interest on railroad funded debt with consequent possibilities of reduction in fixed charges through refunding and otherwise if interest rates continue low. The average rate of interest for mortgage bonds issued by | has declined from 5.53 percent in 1932 to 3.28 percent in 1937. class I steam railways and their lessor companies in 1937 was 3.93 percent and for equipment obligations, 2.65 percent, these being the nominal rates without regard to discount or expense. The average rate of interest on all obligations issued during the year 1937 by class I railways was only a little over 3.25 percent. While the rates of interest paid from year to year depend not only on the general changes in the rate of interest but also upon the strength or weakness of the companies issuing securities, there has been a marked and almost continuous reduction in the rates of interest paid on new securities issued since the earlier years of the depression. On total funded debt the average contract rate on securities issued in each year STATEMENT No. 19-A.-SECURITIES ACTUALLY ISSUED, AND AVERAGE RATE OF INTEREST ON FUNDED DEBT ISSUED BY CLASS I STEAM RAILWAYS AND THEIR LESSOR COMPANIES YEAR ENDED DEC. 31, 1937 (EXCLUDING SWITCHING AND TERMINAL COMPANIES) STATEMENT No. 20.-RAILWAY CAPITAL NOMINALLY ISSUED OR NOMINALLY OUTSTANDING (Held by or FOR STEAM RAILWAYS), ALL CLASSES OF STEAM RAILWAYS, YEAR ENDED DEC. 31, 1937 1 Includes relatively small amounts representing receipts nominally issued or nominally outstanding. Does not include proprietary companies. 77552-38-5 |