Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-02-20
The World of Finance and Trade.
Washington; New York; London
LOCAL FINANCIAL NEWS.

But little interest was shown in the
call at the meeting today of the Stock
Exchange. Whether it was due to the
slump in the general market in the steel
and allied stocks or some other cause,
a degreS of 1istlessness prevailed that
has not been equaled for some time Some
indication of the indifference toward the
securities is afforded by the bid for gas
stock at 73a4. nearly two points less than
the bid of the day before. and its offering
at time at a point less than the
closing figure of yesterday.
Mergenthaler, also. which sold yester-
day at 22O1a, could have been had today
at 21S. In most cases. however. the fig
ures were renewed and no effort was
made either to buy or to sell.
Those interested in gas stock ar f1gur-
ing what would he the effect on the mar
ket value of the stock as we'll as its value
on exchange in the event that the prop
ositon reported from the Senate District
committee becomes a law. 1t is proposed
to allow an increase in the capital stock
of the company to $7,4OO.O0O. and in the
event the outstanding certificates,
amounting to s26OO.OOO, are converted
into stock, the entire stock issue is to be
$10.OOO.OOO.
1t is calculated by some that on the
basis of the issue of stock amounting to
81, 100000 share of the present
par value of $40 would be worth about $57
What the market value of the new stock
which would have a par value OF 500
would be. 1t is thought. would depend upon
the dividend that the company would pay.
The proposed la w permits the payment Of
not more than per cent per year, and. of
course, if such a distribution Is made II
would bring the market value of the stock
much above par.
The owners of the stock and others are
not as much stirred up Oh this subject as
they naturally would be if they thought
the prospect was favorable for getting any
legislation of this sort. or, in fact. any
sort, through Congress a the present ses-
sion.
An abundant supply and a slight de-
mand explain the current condition of
the money market in this city. 1t is by
no means new state Of things. that
has been about the situation ever since
the return of prosperity. which set in
just before the result of the presidential
election was known last fall This re-
turn is acknowledged by those familiar
with the situation as having taken place
largely in the imagination of men. But
still the change that then set in was an
appreciable one and was in the right
direction and has continued to the present
time
The progress was neither rapid as
wished for nor has the volume attained
been entirely satisfactory. Men have not
been spreading out very rapidly in their
business output for the reason they did
not find the market called for such en-
largement, and in consequence there has
not been the use for money that other
wise would have existed. This is a gen.
eral condition. and 1t is also a local con-
dition.
AS far as the local stock market is
concerned there has been but limited
speculative buying of securities since the
where. the prevailing state during the
depression was reflected in the quota
tons for the securities listed on the
exchange. These figures showed a large
shrinkaSe, and while it was accompanie
with some selling, the volume of the
latter was not large. The same thing
marks the rise since the recovery was
noted.
The advance of twenty and thirty points
has been accomplished during the past
few months with a comparatively slight
amount of business. What buying has
been done has come largely from In
vestment sources. There has been a
lack of speculative buying. and that still
remains the feature of the market. 1t
is not because there is no money to bor-
row on marginal accounts as, on the con-
trary, ii is said that the financial institu-
tions have an abundance Of loanable
funds.
Various explanations are given of the
absence from the market of this element
but while it may be satisfactory to know
why, it is still of more Importance to
know the fact.
According to a somewhat general no.
ton of the relations between a corpora
tion doing a public service and the pub
lie thus served the one is trying to do
as little is possible for the return
given and the other is trying to get all
that is possible and pay as little as is pos
sible. 1t is hardly a state of armed
fare. of guerrilla methods. The public
is unreasonable. the corporation is grasp
ing is the way the mental attitude of
both sides may be summarized
1t is not likely there will be any change
in the positions or the view points of the
two parties which have occupied such
lineup for a good many years back.
There is nothing new in the situation.
The spirit of mutual interests, of COM
mon objects, is recognized by political
economists and by some of the more ad-
vanced belonging to the two classes
named. The right of those in the man
agement of corporations to make per-
| sonal use of their knowledge of the bust
ness and of the prospects of the compa-
ny and the right OF the public to gouge
the company whenever and however II
can appear to be looked upon as quite as
fully secured and inalienable as those
political rights which are guaranteed to
the citizen by the Constitution
The recent decision of the United
States Supreme Court in the case of the
\
asserts or rather affirms, the right of the
public as represented by the legislative
authority to fix the price of the commod-
ity which such a corporation is formed
to make and sell. The property which
is used III carrying on the business has
! been purchased by the money furnished
by a section of the public that bought
the stock while the officers and directors
| are the paid employees of the stockhold-
| ers and their representatives.
! The public character of such corpora
| tons is recognized. In fact, they are
| now known as public utuility corpora
tons. But in actual experience, such
! combinations are far frem being public
| edge of perhaps one man or several men
| constituting the board Of directors, Is
anything known of the plans and pur-
poses or of the actual financial condition
of the concern.
The practice in this country has been
! to turn over to one man or perhaps sew
I'eral the supreme control and direction,
give him or them complete authority
make him the autocrat and let him WELD
such power as long as he continues to
pay sufficient dividends to the stockhold-
ers and so manage that the market
course Of the securities affords the stock
holders chance to turn over their hold
| ings of they so desire.
But the stockholders must be satisfied
with their dividends and the market stat
| us of the stock, but. as to having advance
information in regard to increased earn
ings or enlargement of plant or addition
to stock holdings. or any thing of the
kind that tends to market appreciation
is not for them. but for the insiders or
perhaps only for the one man. The pos