The Washington herald., 1913-11-12
Strong RALLY
PARTIALLY HELD
Sharp Covering Raises Values
Over a Point, but Buy
ing Soon Stops.
RAILWAYS HOLD WELL
Bonds-To Tell About
, Income Tax.
RAILWAYS HOLD WELL
By I. A. FLEMING.

Just what effect the Z per cent increase
In wages of Eastern trainmen may have
had on the market was not evident, al
though that the advance was not greater
may have caused some improved feeling.
But the logic is sure to result in an ad-
vance in wages to Western trainmen.
They will see ii in sight and demand.
yvote whether to ask II or not and. Of
course. vote in the affirmative and then
the arbitration-while the railroads still
have their tariffs held up by the Inter
state Commerce Commission.
Many good market judges asserted that
they witnessed better buying by large in
terests than for months past. A conserva-
A>&iye operator went so far as to express
the opinion that Monday of this week
was low day for the season. Substantial
advances were predicted before the end
Of the year, but the room traders did not
take much stock in this more favorable
4 view and kept pounding away, selling at
higher prices in an effort to start the list
On the toboggan once more.
The Mexican situation is said to have
improved, although in just what way re-
mains to be seen. The chances for in
creased freight rates are said to be
greatly improved, and close observers
note indications of better business.
The steel and iron business hesitates.
1t has not become serious as yet but If
to reduce production through the estab-
Iishment of shorter hours Of work or
by laying on men. -
Reaction.
The full advance was not maintained.
When the bears had covered rather free
ly new short stock was put out at the ad-
vance and in the final hour there were
recessions amounting to about half of
I-the advance of the day and the closing
showed the leaders only fractionally
higher Only in the early hours was
there any activity, three hours after the
first, producing but 5000 shares.
No Encouragement.
will be offered by financial interests to
any bull movement in securities until
such time as the Mexican sore has been
definitely analyzed and treatment posi-
lively decided upon or until it has been
sufficiently removed to cease to be a
source of llneasiness.
The dig financial interests also want
sIhe currency bill enacted in a suitable
Vform before lending financial aid and
comfort to the long idle bulls in securi-
ties.
The closing was materially below the
best figures and extremely dull
Gains in the leaders extended to one
half point and the general list was IA
y better, nearly everything sharing in
the advance with nothing to the fore as
especially weak.
RAILWAY Common.
An imperative order to sell ten shares
Railway common made the first record,
following the sensational stories of in
vestigation by the Utilities Commission.
Soon thereafter the price was advanced
to g, and bid for odd lots or round lots
with none offered under 92S. The pre-
ferred shares were strong at 50 to a
fraction better.
The same stories regarding the posi-
tion Of the Washington Railway and
Electric Company have been given out
time and again on the street, and as
often officials of the corporation have
asserted the opposite. Some of the allega-
tons are admitted, especially the state
ment that earnings of the Potomac Elec-
trio Light and Power Company were
being used by the railway company. The
latter owns the former, by charter of Con-
gress. 1t was one of the considerations
ct the time Of the merger of a bunch
of partial paying and nonpaying roads
the railway company is the owner of the
stock OF the electric company and as
such has a perfect right to the earnings.
Some of the directors OF the Washing
ton Railway and Electric were seen on
the matter and claimed that conditions
were not as stated; that the depreciation
reserve in securities of the company was
absolute good business methods in vogue
by corporations everywhere; and that the
audit Of the American Audit Company,
made at the close of the last years opera
tions, proved the company to be in good
shape.
Just what the commission will be able
10 accomplish remains to be seen. Its
powers are admittedly large, but they
have not been tested as yet in a court Of
review. It is not at all likely that the
directors of the Washington Railway and
Electric Company, will stand supine or
idle under the charges made-certainly
the end is not yet
Local Securities.
There was a good odd lot investment
demand and considerable trading in other
securities. Capital Traction sold at 1lS
washington Gas at 81 1-2, Arlington In
surance at II 1-2, Commercial National
Bank at 1856 IA, and Mergenthaler at rs
Bonds were cutie active, in all S1,500
mar value, changing hands. Railway 4sl
eascd to S0as0 Is, and at the close so was
bid for round blocks Of the issue Po-
tomac Consolidated 5s sold at ss, new
low on this issue. Traction Ss, nominal
Cbesapeake and Potomac SIS, 10la1m 1-2;
cas- IS, lOe, and Columbia SIS at 100 IL
These prices all show good tone IN
the bond list--much better relatively than
in other centers. where bonds are moving
slowly.
washington investors have confidence
in Washington bonds
VIII Explain I'm Full.
On Friday night the educational COM
mittee of the District Bankers Associa-
ton will make report to the organization
Of their labors in solving the hard knots
and enigmas of the income tax law.
It is understood that every eventuaity
has been worked out. that the stndious
committee has labored and worried and,
proud in the knowledge Of preparedness,
will dare any one 20 ask questions that
their combined wisdom cannot answer.
The meeting will be held at the New
willard and viii be largely attended, as
she subject is one on which nearly every
one is at sea.
Seventh street savings.
The Seventh Street Savings Bank has
made arrangements by which the Second