The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1913-04-19
L0WERPR|CES
ON THE RAILS
Only Partial Success Of St.
Paul Bond Issue a
Bear Factor.
GOOD LOCAL MARKET
investment Buying Keeps Prices Strong.
Ten Potent Arsuments-Gossip
of the Street.
GOOD LOCAL MARKET
By 4. a. FLEMING.


any life, and, but for the rather sensa
tional covering and accompanying ris
in Mexican Petroleum and also in CAN
fornia Oil. the day would have been de
void of feature.
The trend was to lower prices, distinct
ly So with the but partial success OF th'
St Paul bond issue as one OF the chle
reasons for the weakness. The stree
wondered what would happen wher
other roads made moves to take vi
short-time notes and to pay for needed
equipment, &c.
The bulls seemed to lack confidence Il
do anything themselves, their pe1ei III
higher prices having been shaken by the
multitude of pcrhapses and possibilitie:
i'm the situation yesterday.
Ten Cardinal Points.
The Boston News Bureau one of the
most searching of financial papers, has
made a close survey of Wall Street, and
has summed the situation up in ten
cardinal points, as follows:
l. General business is holding remark
ably well.
. The currency problem and the labor
problem are more serious than the tar
if problem.
9 The ST Paul offering of an "AAA
bond issue on a 1 IL per cent basis Is
portentous. If our savings banks marked
down their gilt-edged bond holdings to
the basis indicated by the new st. Pau
issue, il would seriously cut into sur
plus accounts.
T. Our banks are stocked with secur1-
tics, purchased when money was plenti-
full following the panic of 1907, which
cannot be now distributed because OF
the present unsatisfactory investment
situation.
3 Money may be very scarce next fall.
Many banking houses are refusing to en-
ter syndicates which extend beyond Au-
gust
6. Tie s170.0c0.0OO Observation-Disclosures
itan bond issue. Il IL per cent pay
ment on which was called last Friday.
viii absorb all the free investment funds
in these parts for some time. The syn
dictate extends for five years.
= An advance in railroad rates is alb
solutely necessary and Inevitable. The
government has practically taken over
the railroads. and hasn't paid for them.
8 Physical valuation of railroads is
welcomed. There isn't single so-callcd
standard railroad system in the country
but what is undercapitalized.
O. There isn't railroad in the coun-
try, practically speaking. but is iii need
with securities if conditions were favor
able Our $4,000 miles of road should
have in capital improvements $1,000, ooo.-
900 Der annum, just to keep our transpor-
tation system abreast of the nations de-
mands.
10. Careful estimates place the short in
terest in Steel at 100000 shares. One
large commission house has almost ex-
actly as many customers short of Steel
as it has long, most unusual situa-
ton.
Mexican Petroleum.
Action in Mexican Petroleum, one Of
the speculative stocks that shows more
or less activity every day, was heavy.
1t opened at about Thursdays closing
co., and then rose more or less stead
lily to 65k, with shorts covering freely.
From the high there was slight re-
action.
California Petroleum gained also. but
nothing like as much as the Mexican,
but rs advance being established.
Waiting.
The general market is again at the
place of waiting-waiting and hoping
against hope that the Supreme Court
will come into chambers on Monday and
hand down a favorable decision for the
railroads on Monday next. Perhaps II
may, equally perhaps it will not
But the street looks for it and con-
siders il the one thing necessary to stiff
fen the backbone of a weak market and
yet not so weak, when conditions gen.
orally are considered.
Subscriptions for the st. Paul bond is
sue were hut 66 per cent of the issue.
The syndicate will take the other &c.
Oo0.Oo0
Canadian Pacific, which was well
bought Thursday, was sold just as
freely yesterday and lost IL points.
Louisville and Nashville was off y.
I.orillard Tobacco dropped 3i4, while
Reading, Union Pacific, and Steel, with
Southern Pacific, eased off 1sa1 point.
Closing.
The closing was better than the low or
the day, without any enlargement Of
operations, 245 900 shares being Fridays
record.
Local Stocks.
Local securities proceeded again yes
terday to give a good account of them
selves as usual, in periods when Wall
Street is a bit uneasy concerning con-
ditions. While there was no rush OF
business, the securities that were traded
in were all for investment. Prices show
ed little or no change
Railway common sold at go and the
same price was bid for the preferred,
with offerings at 49, Small sales of the
latter were made at 92a92 Ia, the high
est point on this rally.
Washington Gas was small fraction
easier, IS 3-S the price on the only sale
made.
Second National Bank showed I'm the
sales list at 162 1-2a162 ga. No other bank
shares were traded in. Mergenthaler,
219 to 21S SIS.
There were more bond transactions
than stock trades. Probably the belief
that they will be accepted as surety
for tax money may have inspired some
purchases.
Gas IS sold at los S. Traction at
lo9 "a, Potomac Consolidated Is at 100 5-S,
and Steamboat IS at los.
Undertone of the market is good
Strictly investment buying, no evidences
OF speculation.
Municipal Bonds.
4 stimulus to the municipal security
market should result from the interpre-
tation of the proposed income tax law.
In many instances it is now almost i'm
possible to ascertain with any degree
OF certainty just what proportion of an
individuals income from investments is
taxable and what is exempt. Already
many important questions have been
raised relative to the Interpretation of
the various clauses. more particularly
relating to railroad and industrial Sc