The Washington herald., 1913-11-09
BEARS CONTROL
THE STOCK LIST
Declines Average Nearly a
Point with Short Selling
Decidedly Fashionable.
CAPITAL TRACTION'SLOW
Fayuzife Stock Down to 113, Offered
at 112sz-IneOme Tax Mat
ters-GosSip.
BY 4. FLEMING.

IL WAS a case Oh
special weakness in few stocks, some
slight accumulation and persistent pound
ing by the bears seeking additional
profits on short sales put out
The Mexican situation was probably
responsible for part of the weakness, as
it begins to look more stormy and the
end is not yet nor does it seem possible
that the policy so long pursued by the
government, through two administra-
tions, can continue indefinitely.
We have it from financial experts that
financially the country is sound and that
there is no need to fear a money strin-
gency But the people who have the
cash will not invest it with any freedom
with conditions as they are today. and
the big men of the street have their own
troubles carrying their burdens.
Promise of a suit against the Reading
next week, with the investigation to be
started on November Il on coal freight
rates. has caused much uneasiness. Ex-
listing conditions as to all advances on
freight rates are not encouraging, while
the engagement of counsel for shippers
by the Interstate Commerce Commission,
in the employment of Mr.. Brandeberg,
still rankles in the ranks of railroad men
seeking some returns in the measure of
advanced rates to compensate for con-
tinued boosting of wages
Low Prices.
The hope of the situation is in the
fact that it is likely to get better, even
if it should temporarily be worse. The
current prices have discounted nearly
everything. Enforced liquidation is
about over and the bears. having been
given plenty of opportunity, have again
sold themselves heavily short, so that
any important favorable news would
start the ball rolling the other way,
with the shorts digging to cover.
Traders spent the first hour very large
ly in feeling around for soft spots. They
found them in New Haven, which has
degenerated from New York Central
class TO that of the ordinary Western
Southwestern road; they found Cotton
Oil weak and they found Steel yielding
on the continual reports of closure of
mills and cutting of prices, even before
competition from the other side has
made its appearance as predicted as a
result Of tariff cutting. The fGct of the
matter is that there is general dullness
in the iron and steel trade the world
over. and the "a per cent reduction in
building operations last month has had
much to do with it.
While comparatively little stock came
out on the pressure exerted in the first
order, stop orders were caught in many
stocks in the second and final hour of
the session and the list displayed more
or less positive weakness, with recessiOns
practically everywhere.
1t was just a pessimistic feeling-the
public will have none of it, the big in
terests are engaged elsewhere; some
smaller holders are being steadily forced
to quit and let go, and the bears are
pouring away-at a game in which they
have been very successful.
Sentiment Bearfsh.
Sentiment on the street is bearish I'VE
are hoping for the worst" is the way
the trades put it. semi-seriously, looking
for a smashing decline to cover shorts,
never dreaming of having to buy in
against competition strong enough to ad-
vance values. Moreover, the worst may
be necessary to remove the doubtful
quantities that exist today.
New Haven struck a new low at IS 5-4,
another points loss. 1t recovered 1-2 in
the final dealings, while the majority of
stocks came back but IA on the last ten
minutes of covering.
Steel lost about a point, Union Pacifis,
Is; Reading, SIS; Southern Pacific, Rock
Island, New York Central, and Northern
Pacific, 1-2a3-4; Canadian Pacific points,
Copper and Smelter a point, Texas Oil,
., and the list 5-Sa1 point
The promise of gold Importation move
ment was of no value to the market.
Capital Traction lib.
There was scarcely anything doing on
the Saturday session of the local ex-
change. only 80 shares of stock selling,
ali Capital Traction, at 113. Moreover,
the offered price at the close was 112A,
with H. the official bid.
In the panic of 1907 this stock sold off
from a high at 17 in March to 125 in
December to a low at 10 in February
gust, 1909, there was gradual recovery
to 141, since then the turn has been the
other way to Us in 1910 and 123 the low
of 1872
This year the pressure has been stead
fly applied, for a total sales of 6.726
shares, including a block of 1000 shares
for the Letter estate. Pressure exerted
largely by interests seeking a merger
of the street railway systems, has been
met with considerable opposition, but not
enough to check actual liquidation in
spired by the steady lessening of values.
Despite the manipulation of the year in
Railway common, but 753 shases more of
this stock was traded in than the aggre-
gate sales of Capital Traction.
The table published elsewhere, show
ing the records of the year, is inter-
esting, and shows the shifting tides of
investment operations, the changing of
Investments, and the years price move
ments.
1t will also be noticed that many Sc
carities, stocks, and bonds are at the
low prices of the year. Investors are de-
manding more for their money; they
find the taxes greater and opportunities
better and are demanding large returns
on investments.
Washington Gas, with its spasmodic
movements, leads the entire list in vol
ume of trades.
The only other sale yesterday was q
500 Railway per cent at 81.
Income Tax Matters.
Everybody Is vitality interested in the
income tax and all are seeking informa-
tion in order to be able to answer ques-
tions of others, If not for their own
benefit.
Here are answers to number Of ques-
fions which may prove useful, each an
swer also indicating the question-also
comment.
There is no tax on the joint income
Of husband and wife. II your individual
income is in excess of 5000, you are
taxable for the excess, but your wife's
income is not taxable unless it exceeds
$1,000 The original bill provided for a
tax on the joint income OF husband and
wife, but that idea was abandoned in the
completed law.