The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1912-12-04
Nv I. n. FLEMING.


Southern Pacihc-Union Pacific interests
are finally divorced is that it is a prac-
teal forecast of the way all trust case
decisions will come down from the Su-
preme Court, as now constituted.
This verdict may be drawn from yes
terday's market action, which was ac-
tive throughout the five hours and suffi-
GENTLY erratic to give room for much
speculative play.
While the list OF days losses is by no
means confined to the industrials, it Is,
nevertheless, true that practically all
industrials did suffer. They did not lose
heavily, but everything was of frac-
tionally, k-point losses being about the
average, save in some of the more
prominent industrials - Republic Iron
and Steel, Pressed Steel Car, Bethlehem
Steel. Pittsburg Coal, Can common,
Texas Oil. and Steel preferred-where
over a point losses were sustained.
Most of the business of the day was
in the four market leaders, Steel COM
mon, Union Pacific, Reading, and South
ern Pacific. The bears hammered on
these stocks viciously and left an i'm
press on Southern Pacific, but failed,
despite their efforts. to make Roadway
in the other securities.
Traders expressed themselves freely
on the real effects of the merger ruling,
and. while admitting that the case
against the Steel Corporation had been
strengthened by the decision, contended
that it would be at Yeast two or possibly
three years before the court ordered
dissolution. While Steel common man
aged to recover fully, the preferred
stock was weak on the liquidation.
So far as the immediate effect of the
merger case was concerned, traders took
out their dislike ON Southern Pacific, al
though the general impression still IA
VOrs advancement of the road as an in
dependent proposition.
1t was pounded hard all day, losing
over points, but coming back a point
in the profit taking at the close and
covering of shorts.
Reading appeared to be a prime IA
VOrte- on the theory that an adverse
decision in its case would mean a fine
melOn-cutting proposition in the elim-4
nation of Readings wealth in side is
sues. This brought a 2-point rise, lost
in the general liquidation that came
over the market after the noon hour.
Snuff again sneezed its way into big
gain.
Money varied from l to to 10 to 81
per cent.
London bought 10000 shares of stocks.
showing that it was not perturbed over
the war situation or the merger deci-
sion.
Representative Levy of New York
made the argument that the Treasury
Department had been drawing millions
of the peoples money in taXes-$26S,-
WOGO0 in l9l2-and that it was time for
the Secretary of the Treasury to relieve
the monetary stringency by depositing
S5uOC0,OoO in the banks. He introduced
resolution to this effect
Business needs the coin and needs it
badly. and would gladly welcome the
order to Secretary MacVeagh.
Coming on the date predicted. the
Comptroller issued his NTH call for the
year on the national banks and the ifs
cal institutions OF Washington for a
statement of condition at the close of
business November ~
Individual deposits ought not to show
much change. but the holdings for the
credit OF banks and bankers will suffer
materially. As stated before the in
dIVlduals will not be far from SIS, O0O-
"00. Banks have materially strength
ened their positions since the call.
Money is tight all over the city, and
any amount might be loaned at per
cent.
Within the next day or two the answer
t" the bill recently filed for an injunc-
ton against the Washington Utilities
company will have TO lie filed IN court
The preparation of this answer. which
in all probability will be 4 demurrer, is
understood to be well underway
Lawyers of the corporation are also
busy on the preparation of the 800, 600 coo
mortgage to secure the issue of per
cent bonds from time to time. This doc
ument must of necessity pass muster as
to legality, &c. OF the legal talent of
the banking concerns and bond houses
OF New York City who are to pass on
the issue before underwriting it.
In the meantime brokers of the Wash
lnSton Utilities Company are taking no
part in the daily operations on the stock
exchange. 1t is not natural that they
should until such time as the legal OBJ
stacles have been removed, or at least
decided
The mortgage can be drawn at this
times as the security for the collateral
trust bonds will be, as the entire assets
Of the Washington Utilities Company at
this time or that may be hereinafter ac-
QUired.
There seems to be no uneasiness among
the holders of either the preferred or
the common Railway and Electric stock,
as the daily business is nearly nil There
yet II that price was bid it is more than
probable that offerings would be with
drawn.
With the present tight money~in New
York. bonds are not acting nearly as well
as they have been, but this is merely a
temporary stringency, and will be over
before the end OF the month-the more so
If the foreign situation improves and
no attempt is made to keep gold from
coming this way.
The annual report Of the Masonic Hall
Association for the year ended November
50, 1872, follows:
RECEIPTS.
Balance hand last report ............... s. 0S3 q
RECEIVED from rents. "a H5
Received from interest bonds $50 %
SURPLUS ACCOUNT.
Washington Railway and Electric COmpany4
per cent bonds, S.00o-cost. Ig 3
LIABILITIES
so %
EXPENSES.
Interest on bonds $50 90
Miscellaneous repairs and improEenents...... LES 81
Taxes 2ssI 70