Show HIGHEST RATES IW I HISTORY PAlO PAID FOR LOANS Regardless of Tight M Money n y Railroad Financing Is Done on Large Scale NEW YORK TOlU June Tune 26 Despite a continued continued con con- tight ht money market railroad financing ing ng so o far this year his been conducted ona on ona ona a large barge scale ecale with generally successful re- re It is t true ue of course couse that high credit railroads were obliged to pay the highest rates rate in history for loans oan but they hey were ab able e to obtain money money as reasonably high grade industrials industrial and and in most cases case's cases at a a. lower rate than some of the foreign government government government gov gov- loans which have recently been floated In this country One important factor that makes railroad financing financing- successful at present Is Is that sayings savings say sav ings banks are continually reporting In Increased Increased increased In- In creased deposits much of which Is in invested invested In in- vested in railroad bonds The Fhe he current return return return re- re turn of 7 per cent on most new flew issues Issue enables enables enables en- en ables the banks to make malte a good profit on onI I these Investments over and above interest p paid ld on deposits and operating expenses Then too life Insurance companies are writing writ ing more new business than ever before The largest larest part of the surplus and assets of these thue companies is Is' invested In high grade bonds Passage of the Esch law covering cover cover- covering ing In the operation of railroads gave managers manag manag- r i ers In s t the of fe fet t these future r investing of railroad fr Institutions loans S which confidence eh has of been late reflected In the market for these bonds The rhe last railroad issue to be offered to the public was Chicago Northwestern ten- ten year 7 per cent gold bonds in amount of These rhese bonds were wee we publicly of offered offered of- of at par Subscriptions to the underwriting underwriting under under- writing syndicate were largely In excess of the amount and dealers report a generous public demand The bonds are secured by Chicago Northwestern Northwest Northwest- em ern new and first refunding 1937 1037 and general mortgage 6 due 1987 Pennsylvania railroad year ten-year 7 per cent bonds the first Important issue to be offered offered offered of of- this year at at par are listed on the New York stock exchange and for several weeks have been selling as high as |