The Washington herald., 1913-09-04
GAS COMPANIES
NOT DEPENDENT
Washington and Georgetown
Have Nothing in Common
with Each Other.
CROP DAMAGE SERIOUS
Grain and Cotton Prices Rise, While
Stocks Sustain a Slump.
Earnings.
CROP DAMAGE SERIOUS
BY I. A. FLEMING.

Financial interests do not believe tina
the bill introduced in the House on Tues
day for municipal ownership of the trac
ton systems will go to a conclusion
and yet there are few who believe that
the measure may rescn a finality.
But it will never be accomplished by
paying the proceeds of an issue of 81:
cent bonds. In days to come 1-2ai
per cent bond issue may again become
Popular but at this time and for years
to come even high grade municipal Is
will be a drug on the market Bonds
yielding 5a6 per cent are needed these
days to get the cash out from Tightening
holders.
There is no question but that one trac'
tion company with universal transfers
would be a most desirable consideration
and that the regulation of such sys-
tenn would be a much easier task for
the Utilities Commission.
The proposition made some time ago
to buy the traction properties with the
proceeds Of an issue OF 3 l-2 per cent
bonds may be said 10 be veritably up
in the air.
The Georgetown-washin Gas case
il in court, nor is it likely that the Com
missioners will do more than report this
fact TO the Senate in reply to its resolu-
ton.
The Washington Gas Company exerts
rot the slightest influence over the
Georgetown Gas Company or its affairs;
it names no officials, has nothing 10 do
with regulating its affairs, is nonentity
in it's management.
The probabilities ere that the Wash
ington Gas Company will be ordered by
the court to dispose of its Georgetown
stock, which would dissolve the so-called
relationship, which is not even that of
a second Coustn ship. The question of
the ownership Of the Georgetown shares
owned by the Washington Gas Company,
after such an edict, would be the one in
teresting feature.
The relations that are presumed TO
exist by the resolution ceased about
eight months ago, more or less, and
have not been resumed.
Stocks Weak and Lower.
Yesterday witnessed a general slump in
values all along the list. This was due
more than anything else TO the continued
rise in prices for corn and cotton, while
other grains also are moving upward.
Cotton gained an average of 50 points
more yesterday and closed near the top;
Corn rose ! l-2 cents a bushel, and
wheat and oats were marked up sharp
ly. Sharp gains also were made in pork
products.
The weather map offers no satisfaction
to the sufferings of agricultural sections
where drought and heat are-Cutting great
swaths into the big grain crop that this
country needs so badly.
wall Street is watching the whole
field of agricultural effort and consider
ing the effect of crop damage on the
earnings of railroads. Just when rail-
roads were generally encouraged by the
May and June earnings. the business
begins to fall off. the July figures show
ing losses very generally.
The St. Paul system for July showed
net decrease of A63,239 Gross earnings
generally show gains. but the heavily
increased expenditures make the net
gains poor.
The Rock Island system showed net |
July decrease of S563.S59 in operating rev. !
enue. Missouri, Kansas and Texas, how
ever, reported a net gain in July oper- I
ating revenue of SaO6.S2S
In the afternoon. the passing of the |
dividend on California Petroleum. gave !
the market another jolt, but other Pc
troleum stocks did not 20 off with the
California stock, which lost points.
he subscription to the Southern Pa
cifc stock held by the Union Pacific is !
said in close inside circles to have been |
about 50 per cent o" the whole, leaving
about - per cent to the underwriters
When the government crop report .
makes its appearance September s. it is
feared that the worst fears as to crop
damage will be realized
The decline ia Copper stocks also dis
'' uraGed the bulls and gave encourage
nent |" the bears. Under the added
pressure the list gave way all around,
lnDSf NiThpY1f ]
clined is: Smelling, l; Locomotive, BaIti-
more and Ohio. New York Central, Louis
lille and Nashville, and a number of
'tocks. l. point. Atlantic Coast Line
'nd Atchison were a point off. Great
Northern. Illinois Central, Reading
southern Pacific. and Nipper were lal -
over Steel closed a point lower; Union
'acifc. 81; California Petroleum. .
'oints, and Canadian Pacific nearlv
'oints lower. It was A weak list and
here was scarcely an exception New
taven was especially soft.
American Hide and Leather renor+s
rading prOfits-increase, SI5S, so; surplus
Increase. $I2,69I. which is a rather pecu- I
lar way of expressing reports LoriIlard
ooacco Company declared dividends Of
"a on the preferred and 1-2 on COM
non.
Local SccuritIcE.
Local security market continues ex-
remely narrow Small Traction IS,
IS L.; Washington Gas 41-S; Federal !
Iank, 135 7-Sal36. !
Members of the stock exchange do not +;
axe the municipal ownership proposition !
5 likely to lead to any Developments !
Ist a bill by one of the 4OO-odd Repre- !
antatives. s
S
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