The Washington herald., 1913-12-03
WILL PAY TAX
FOR INVESTORS
Washington Railway, Capital
Traction, and Washington
Gas Co. Have So Agreed.
NEW YORK STOCKS FIRM
Part of Sharp Advances LOst-Better
Feeling Shown in Local
SecuFifies
NEW YORK STOCKS FIRM
BY 1. A. FLEMING.

BY i. n. FLEMING.
The Washington Railway and Electric
Company has decided that II will pay
the normal tax for ownerssof all under
lying bonds, with the single exception Of
City and Suburban Railway 5s.
The Capital Traction Company Monday
began paying coupons on the $56SO,00O 3
per cent bonds at the fiscal agents, the
Union Trust Company, and at the same
time assumed the normal tax for its
Landowners.
Attorney Darlington has reversed his
decision in the matter of the Washington
Gas company proposition not to pay the
normal tax for its bondhoIders, and that
company is now willing TO pay the normal
tax
In the case of the Washington Railway
and Electric Company, the volume of all
issues upon which the tax will be paid is
$ls.5l2,OOO
From this large total, together with the
big issue of Traction IS and s., Al, 500
Washington Gas 5s. it will be realized
that these corporations, while dealing de-
decidedly generous with their sharehold-
ers, have a positive right TO expect that
those of their bondholders who are eX-
empt from the provisions of the income
tax. should prepare their exemption cOu-
pons with promptness, and to their full
limit.
One per cent on sl6.5l2,OOO bonds is
serious matter. $l65.l2O. and the other
bonds named, call for over $4,000 IL there
were no deductions for exemptions.
Improved Feeling.
There was a decided improvement in
the local financial and security situation.
Better buying orders, and an entire alb
sence of pressure to sell made the ses-
sion of the local exchange quite cheerful.
Around the banks the feeling was more
cheerful. There was plenty of money
for legitimate requirements. but the
banks are inclined to choose in the mat
ter of paper and collateral offered No
encouragement is given to expansion in
any Hneof speculation while legitimate
business has every encouragement
Gas Strong.
One of the strongest securities on the
local list was Washisgton Gas shares.
There were a number of orders, generally
up to So 1-2, and after call quite a little
stock sold at 50 S-4aSS IS The feeling in
the best-informed circles is that the Dis
trict Commissioners in their capacity as
utility commission will grant the merger
in the interest CT one gas company and
Il uniform rate for gas throughout the
entire city.
Washington Gas is one of the stocks
where there has always been buying or
manipulated and gave an exhibition that
induced many people TO sell out. but SELL
ers usually get back into il again.
Bonds Wanted.
Reinvestment of December disburse-
ments was in evidence in the market for
local bonds. In all $4,000 face value
changed hands, distributed through five
issues.
Traction IS were steady at lOT IL. Rail
way IS eased from SO IA to 70 rs, and
came back to strong close at 80. Gas
IS were 1862 early. with a sale of s.. 500
at 10T after call Steamboat IS declined
from los to 1Ul H. Columbia IS were
rs, a new low.
Railway common was firmer, the bid
advancing to 81. where several transac-
tons were recorded. A little preferred at
81, with the bulk OF the stock at IS 81
The movement in the Washington Rail-
way and Electric shares was diversified
as to the parties in the trading, there be
ing several buying orders.
Mergenthaler. PIG -.
Extra Dividend.
Mergenthaler directors have declared a
regular dividend of > II per cent, and an
extra dividend of IL per cent, payable
to shareholders of record December {,
1913, payable December 81.
Better Tone on Wall Street.
For some reason or other, Wall Street
threw off its condition bordering on flat
ness, and did a very fair DAYS BUSH !
ness for this year and this time of the |
year. Actual transactions totaIed nj
OOO shares. Fractional advances were
general throughout the entire list many
point gains being made during the earlier
hours, and partially lost in the rnal
hour on profit taking. II was the first |
sign of life that the market has given
Tor days.
Asked for a reason, most OF the brok-
ers would probably refer to the Mexican
situation as better. Perhaps 1t Is, and
perhaps this was an influence, but the
feeling all along was that Mexico was
but an excuse
No One-had any idea that the Presi-
dent would be in favor OF repeal of the
Sherman law, but fair words, as to de-
lining its workings may have put lit
tie better face on the trust proposition,
the real crux OF the situation
Probably a feeling that the currency
bill would be rushed through may have
had some effect, as the traders realize
that it will give relief to the money
market
Average advances held at the close
were about 1-2 a point. They were gen
eral. with the possible exception of Great
NOTIheEn' winch Tor some reason not !
made public showed about the average
.hange, but in the direction of a loss.
As matter OF fact there was prob
ably nothing TO change the general char
acter of the market save a determination
on the part Of a few bears to scalp a
little profit on the other side not being
able to make any Roadway in playing
the bear side
Perhaps the street was discounting the
action OF the Interstate Commerce Com
mission There was nothing in the gen.
eral news of the day to cause any ma
teriai display Of strength, such as was
IN evidence at the opening and during the
morning hours.
Over half the days business was trans
acted in the initial hour, LOG, 400 shares.
thereafter showing to about $1,000 shares
an hour
Slowing Up. Ii
The National City Bank of Chicago, in |
US december circular, SAYS:
There is not at the moment the broad
inquiry from mercantile borrowers that !
was seen Il few weeks ago. One reason
Tor this is the Iessened demand from
manufacturers who in the last few weeks
laid on a large number of men because
OF a Slackeninp In fra a | :