The Washington herald., 1913-11-07
LEADERS LOSE
VERY HEAVILY
List Starts Well But the Blue
ness of the Situation is
Depressing.
POUNDING OF BIG THREE
Capital Traction Easier-mergenthaler
Earned 2l.62 Per Cent Net
For Fiscal Year.
POUNDING OF BIG THREE
by j. 4. FLEMING.

by j. 4. FLEMING.
Wall Street looked out upon the sit
uation Thursday morning with intent
to see the brighter side. as II did on
Wednesday, but before the first glance
had ended the spectacles had become
befuddled, and blueness took the place
of hope-result, a general smashing OF
values to a new low point for the week.
Wednesday it was a case of "over-
sold" markets, IL one might believe the
gossip. II il was fact and not fiction,
the overselling mood again on Thurs
day might be fraught with danger, but
II is difficult TO convince the bears that
they are in any danger when they con-
tinually go through the line when they
hit it. II has been decidedly fat pick
ing for the shorts. They sell stock
TO each other, covering when necessary,
and do not have to have evidences of
liquidation to encourage them. II they
stop bearing for a day they renew with
more posltiveness the next.
1t is a bear market, and yet one
might think that the smashing de-
clines of the year to date should have
more than discounted the entise series
of things that are now known or COM
ing gradually into view.
Railroads, ''waterlogged" with notes
and securities, meeting continually the
hours, and better equipment, find earn
ings hard to keep up to averages.
Trust busting apparently is only de-
layed by currency action, which in turn
is delayed that the matter may be
thoroughly aired and a better system ef-
fected; money scarce and hard to get, rates
at the limit in many States. The income
tax disgusting many with bonded obi-
cations. and the Mexican situation acute,
even when viewed from peace-at-any-
price platform. 1
1t would look as IL the market should
turn quickly and score Il good advance, |
just because nearly every one Is bearish. |
and a real recovery is past due.
Prices for steel continue to sag, and |
very little buying has made its appear |
ance on the downward movement. Many :
mills are preparing to curtail operations, |
due to lack OF business. About 60 per
cent of the tin plate capacity of the
country is now in operation. Through |
low prices and reduced operations earn
ings of the various steel companies over
the next six months will show heavy
falling on
week ago the current quotation for
Bessemer billets was $3.50 a ton. Pitts
burgh advices are that sales have been
made at $31.5O ton. Sheet bars also
show reduction of so cents a ton.
shorts Covering
There were reports of shorts covering
yesterday. but any close observer of the
price range will note that if they did cover
they took handsome profits and failed
at the same time to produce any espe-
ciaI rally in the late trading.
II the record is a little too gloomy,
the losses OF the day may account for the
coloTing.
The recoveries We're not worth talking
~ ha m rba 11a
weakness 10 election returns; also the
strength on Wednesday was not due to
this cause 1
Some liquidation of longs took place
in the last few minutes and the closing
was both dull and weak.
Union Pacific lost 1S4 Reading like
amount, following Union all session,
while Steel 2ls and closed right at the
low Of the session, 54a. Copper was of
ia, Smelling y, Canadian Pacific
point, st. Paul rs, Mexican Petroleum
3 points, Pennsy and other high grade
trunk lines IL point. Rock Island pre-
ferred IL. Steel preferred point. and
Southern Pacific nearly rs Minor stocks
eased of 1-2a5-S. The closing was grind
ing on the bottom.
Capital Traction Hammered.
The new low record on Capital Trac-
ton shares was made today when fairly
large transactions were made at 1l4Js
and some odd lots sold at III S-S Con-
tinual hammering at the stock since it
was above I23aI25 and then the pound
ing day by day has dislodged some SELL
ing, while the offerings naturally call
for concessions in these bargain times
\ few shares United States Trust sold
n 153 and a little Mergenthaler at rs
while Gas sold at 81 IA, in all 20 shares
Of the latter changing hands.
Traction IS, 107. Railway Is were quite
lively at sOI6 then at sOIGaso3-s
MerEenthaIer Annual Report.
The annual report of the Mergenthaler
linotype Company for the fiscal year
,ndinE September 20, shows that the
company earned s., 1870 net, or 2I62
,er cent on the $12 200 capital stock
These figures compared with 21.39 per
ent, the, net earnings Of the previous
IscaI year, on practically the same
mount Of stock.
Income Tax.
A small package of coupons calling for
III interest was received at a local 4
rust company accompanied with the fol-
owing note:
81 understand that the corporation
avs the tax on these bonds Please
therefore, remit me the $40, plus the
In tax"
The people are muddled, the bankers
re muddIed, everybody is mixed.
Said a banker today: Il am real
state agent 1 collect taxes for seven
lonths from tenants and then go in
ankruptcy, who is the loser?''
"a hazard of Uncle Samuel" was the
nswer.
Framing regulations for the admins
alton of the income tax law seems to 2
eep the Treasury Department busy, and
lie public bewildered. The last one to
nanate from the department promises
, give its full quota of trouble. This
.gulation provides that when note is
wen for rent or interest the maker Iss
hen he pays it, shall deduct the amount l
the tax, even though the note has 4
assed into the hands of a third person.
This is a reversal of the law mer-
iant which, in all commercial countries
Is for ages given q peculiar sanctity
commercial paper. That law does not
.rmit the maker OF a promissory note
make any defense to 1t, or any in
,cent third person before maturity. 80
his greatly facilitates commercial trans
,tions. and enormously increases the
edit currency.
That is the established law in the
affed States FlIt N the Treasury De- \