The Washington herald., 1913-03-15
OUTLOOK FOR
A money BILL
Pujo Recommendations May
Be Incorporated Should
Extend Emergency Law.
RAILWAY COMMON Is UP
Rumors of Extra Dividend-Union
Pacific Matters
Street Market.
By L. A. FLEMING.

By 1. A. FLEMING.
Just how much effect the recommends
tions and the findings of the Pujo COM
mittee will have on the probable currency
legislation at the extra session of Con-
gress. or the first regular session, re-
mains to be seen. The general impression
is that restrictive provisions of the new
bill will be nodded more or less along
the line of eliminating the evils COM
planned of by the Pujo committee in the
majority report.
Chairman Glass. of the Banking and
Currency Committee of the House, how
ever, is independent in action. He has
views of his own, and will naturally
make some use of the magnificent coliec-
tion of facts and figures on the banking
methods of the world as compiled and
published by the Monetary Commission.
of which Senator Aldrich was chair
man.
The PuJo report was more a criticism
of existing banking methods than a sug-
sestion for a more elastic currency.
1t is suggested that possibly bank reg
ulation may be enacted preventing bank
mergers without approval of the Comp
troller of the Currency, this being in
line with the trend toward paternalism-
Interlocking directories probably Will be
prohibited and plans made for minority
representation on bank boards. Deposits
by interstate corporations OF funds with
unregulated or unsupervised bankers may
be considered
1t is safe to assume that underwriting
syndicates will be barred TO national
banks if the Pujo committee report counts
for anything.
The question of bank officials borrow
ing from their own banks is a broad one.
Certainly if bank director is barred
from the bank with which he is identified
and in which he is a stockholder. where
his condition is better known than any
where else, the ruling would be drastic
and ultra-conservative. The suggestion
that the Comptroller of the Currency
should publish a list of officials bor
rowing from their own banks, with the
amounts secured. in his annual report
would but drive hanks out of the ma
tional fold: indeed, the trend is in
clined that way now. Such measure
would greatly disturb the banking
business and could emanate only from
those who would pry deep into the per-
sonal business of other men, Bank Off
cials are accredited with being honest
until the reverse has been demonstrated.
This section would brand them.
But regulation does not tend to elias
ITCHY: rules and regulations may restrict
practices. but currency reform is some
thing else.
Extend Emergency Act.
Congress could give the financial and
business interests much comfort if the
provisions of the Aldrich-Vreeland
emergency currency act were extended
for a period Of two years. pending
permanent currency legislation.
This emergency currency law is still
in force but expires soon. 1t was never
responsible for the issuance of a dollar
of emergency currency, but the millions
were ready. and by their eNistence-the
fact that financial interests knew the
currency was ready and that there
could be no shOrtage-prevented a re-
currency OF strngency.
The Committee on Banking and Cur
rency will not show material change
in personnel. but neither his committee
nor yet the one on "arid lands will
have a member named \. Pujo.
Union Pacific Matters.
The Union Pacifc-Southern muddle
may be- sufficiently cleared up this morn
ing on the banks Of the big muddy" at
ST Louis to permit the syndicate organ
fzed to take over the Union Pacifics hold
ings of Southern Pacific stock. furnishing
the big block Of cash necessary.
It has seemed all along, since the OBJ
lection of the California commission, as
rnuddled to offer a solution.
The Union Pacific directors left New
York Thursday and will he in 81. Louis
this morning to appear with counsel in
court and get the matter settled If pos
sihIe.
The only change in the latest plans to
those submitted to the court by former
Attorney General Wickersham relates to
trackace facilities for Union Pacific to-
enter California. This satisfies the Cali
fornia commission. and they have with
drawn objection. But Attorney General
McReynolds. while having general idea
of the new plan. has not had time to-
eXamin, II and has wired the district at
tOrney in ST. Louis to make plain to the
court that the government has not ap-
proved the plans.
The stockholders of Union Pacific
and Southern Pacific have received their
subscription warrants to stock of the
two companies in connection with the un-
dcrwritinE syndicate formed to dispose of
the sl26. 600, 600 Southern Pacific stock held
in the treasury of the Union Pacific.
The warrants must be surrendered on
or before March q next, accompanied by
payments in full of one or more of the
installments as follows: In full or before
March q, 1913, 500 for each 500 par value
of stock or on quarterly installments of
s25 each on March 81, July !. October ],
and January .. 1914. for each 800 par
value of stock. Checks for dividend paya-
BILE April /. 1918, will be mailed by the
depositary. and when received by it to
registered subscribers having paid in full
or in one or more installments
Failure to pay any instalIments when
payable will operate as a forfeiture of all
rights in respect of the subscription and
the installments paid. After March y the
warrants will he void and of no value.
Railway Common Over 81.
Railway common was the sensation
on change yesterday. The first sale
was at S.. then gradually up to 81. The
early seller was bidder at s. before
the close of the session. ten-share lot
sold at S11s.
There's something doing. Mid the
on Change there was 5 per
cent dividend suggestion. an extra pay
ment following the next meeting of the
directors-somethng- indefinable, vet
that was effective on the
stock Just how a dividend can be ex-
pected at this time, when the regular
was made March ], was not
explained.
The company's earnings are said TO
be satisfactory; the Utilities Commits
sion. if the company can obtain per-
to increase its stock, has prob
ably solved the financing proposition.
Whatever the cause. the buying was
good and apparently from investors.
Most of the selling was by the broker |