The Washington herald., 1913-10-21
TREND MIXED;
MANY DECLINES
Three Distinct Movements in
the Stock List-Some High
Grades Lower.
LOCAL LIST RATHER 81 0W
Income Ruling on Bonds-Western
Roads viii Wait Result of
Eastern Test.
LOCAL LIST RATHER SLOW
BY i. A. FLEMING.


furnished three distinct fluctuations, and
at that but a limited volume Of business
and no important price changes as
general rule, although there were several
exceptions. 1t was a traders market
at best, and its direction was matter
of the moment. Close observers can see
nothing in. the immediate future to cause
either advance or especial weakness, un-
less the Mexican situation should become
more acute. The short interest has been
greatly reduced; IL has made much
money and still favors its own predilec-
tion in trading. needing but little moro
encouragement to lead to fresh attacks.
The bears are made bit cautious by the
fact that they do not notice much actual
liquidation in the selling-this seems TO
be over for the present.
Attacks on specialties continue. Lon
don is not satisfied with the situation,
and Canadian Pacific was irregular anu
weak on selling from the other side. New
Haven was the object of a vicious at
tack by the bears on general principles
and they even dared take a fall out of
Pennsylvania, breaking that good old
timer nearly two points, though the stock
came back in Pennsylvania manner.
At the immediate opening the entire
list showed strength. moving up sharply
on a continuation of the covering move
ment manifested in the closing sessions
OF last week. The opening prices proved
close to the high of the day.
The fact that the opposition leaders in
the Senate have practically won many
important concessions in their fight, in
Guiding fewer regional banks and prob
ably the omission OF the Secretary of
Agriculture and the Comptroller of the
Currency from the Federal board of con-
trol-and big banking interests will well
come both eliminations.
Fair Declines.
Shortly after the opening the list began
to show weakness with a selling of
stocks named, of Union Pacific, Steel.
practically everything but the Coppers
which were very strong on domestic and
foreign bull news. The decline carried
Union Pacific to 147sI, Steel to SAX, Read
ing to 1855, New Haven to IS. Pennsy TO
10S7s, and other stocks off propor-
tionately.
The selling movement was quite active,
and then, after it had exhausted itself
= came the final show of strength on profit
taking, pure and simpIe-traders taking
care of the cash in sight.
On this buying there was rally to
within fraction OF Saturdays closing
on Union Pacific, Southern Pacific, Read
ing. and many other stocks. Declines
were sustained on Pennsylvania S-4,
5-Sal-2 on c. & o, 3-4 on Northwestern,
rs on Canadian Pacific. IL on Illinois
Central l IA on Tennessee Copper, and
small setbacks on many other shares.
Gains were made on Third Avenue 81,
Copper 5-S, Chino Copper 1-2, Smelling
SIS. and "a on Erie first preferred.
Brokers in their gossip to correspond
ents admitted that they could see no good
reason for bull movement, but advised
the taking of profits on the short side
and seem in favor purchases on fresh
displays of weakness.
Local Securities.
Being unable to obtain any common
stock of the Washington Railway and
Electric Company by steady upbidding.
the chief bidder of the last ten days
turned seller at Sc and reduced the bid to
g5, but there were apparently no other
orders to buy at that limit, nor selling
orders at or below S. On all the upward
movement from 80 L. but a few shares
comparatively have been sold, Indicating
the strength of the holdings, aside from
the 20 per cent in the treasury of the
Utilities Company. The preferred con-
tinues rather slow and bit easier at 81.
There was about the usual trading in
bonds and the prices as follows: Riggs
Realty. ITe; Capital Traction. 1O7 L.: Gas
Is Jos: Potomac Consolidated 5s, 80 5-4,
and Columbia IS at 80.
Income Tax.
On public service corporation bonds
containing clause that coupons shall be
paid free of taxation. or without deduc-
tion OF tax. the holder pays the income
tax: the corporation makes returns to the
Commissioner of Internal Revenue, but
does not withhold the tax.
On the same character of bonds, not
containing the exempt clause, the cor
poration will make the return and
Withhold the tax. If the owner has
an income of less than $4,000 he will
notify the corporation paying interest
10 this effect and will receive his in
terest entire-but a false statement is
heavily punished.
Western Roads Astute.
The head of a large Western system
says that the Western railroads prob
ably will take no steps toward filing
higher freight tariffs. pending action
by the Interstate Commerce Commits
sion on the application of Eastern lines
for an advance of per cent. He says:
For my part, / am opposed to the
expenditure of perhaps $I.OOO,0OO in
preparing Hundreds OF thousands of
tariffs at higher rates. until We know
what will be done with the request of
Eastern roads for an increase.
We have spent a lot of money in
fighting rate reductions in the West
ern States, and are still opposing lower
rates in Arkansas and Oklahoma. 1t
is d crime to require us to carry pas
sengers in those sections at cents
a mile.
Il sometimes think we would have
been wiser not to fight those rate re-
ductions in the West. as we have lost
right along. Certainly we would have
been better OF financially had we saved
the money we spent in litigation, but
we felt we were right, and hoped We
would win
Caution seems especially well taken
in view of Brandeis and the consistent
and persistent record of the Interstate
Commerce Commission.
Changes in the BilI.
Important changes in the pending cur
rency bill are foreshadowed in the in
formal discussions being held between
members OF the Senate Banking and
Currency Committee With only one
more week of hearings before direct con-
sideration of the bill by the committee
is begun. the following changes are re-
garded as certain: The substitution of an
appointive committee for the committee
comprising the Secretary of the Treas
ury. the Secretary Of Agriculture, and
the Comptroller OF the Currency, which
viii frame and start the new banking
aystem: the elimination of the Secrtary
-