The Washington herald., 1913-09-17
ANOTHER BANK
FOR washington
Capital City Savings, Capital,
100000; Surplus, SlO,-
600, to Open Saturday.
MARKET Is IRREGULAR
-, Small Gains on Wall Street.-The
Union Pacific Proposition.
Furry in Gas.
MARKET Is IRREGULAR
by i. A. FLEMING.

by i. A. FLEMING.
Washington is to have another savings
bank
II will be known as the Capital City
Savings Bank and will, probably, throw
open its doors for business next Sat
luTday.
II viii have a capital OF $4,000, par
value $40 d share. The stock has been
practically all subscribed at 81 a share,
giving the institution a surplus OF SlO,OOO
The bank will be located on Georgia
Avenue Just north of Florida Avenue,
between the ball park and the drug store
.On the corner. 1t is the intention Of the
directors to have the banks hours from
9 a. m. TO p. m, daily, and on Satur-
days from a. m. to p. m
II. d. Gordon has been selected as
president and NJ. T. Wiggins, formerly
with the International Banking Com
pany, will be the assistant cashier. Ed
tRard A. Garlock will likely be asso-
Hiated with the bank as a director.
Other directors have been agreed upon,
but no further names have been given'
pending the completion of the board.
The Capital City Savings Bank will pay
> per cent interest on checking accounts
and per cent on savings.
The location on Florida Avenue and
E-Seventh Street has long been considered
by banking men as one of the most desir-
sable sites for a branch bank or saw
lngs institution. 1t has been seriously
considered by some of the banks now
located on Seventh Street and has also
been investigated by at least one big
trust company and one of the larger
savings banks.
.-- Business is increasing quite rapidly in
that section and it is in the heart of a
saving community, so that il is more
- ,g=s-FUN from hn
start.
Seventh. Street has produced good lines
of deposits and with $4,000 capital and
$4,000 surplus il will be among the
strongest of the many savings banks.
FURRY in Gas.
On the local exchange yesterday there
was a decided little furry in Washington
Gas stock. Ten-share lots sold at S6.
thence to S. Ia and round lots at that
price subsequently going back to % Is
and closing with stock offered at 80 L.,
with s. Is as the best bid.
There is too much stock hanging over
the market from the July fiasco to per-
init of any material Improvement until
such time as something definite shall be
evolved from tho movement to merge the
two companies. The outlook is promis-
!. ing but that is about aiE-tHat can be
said at this time. The officials of the
merge, but will also have something TO
> say about the price which they will con-
slider.
CAPITAL Traction shares were strong
early at 1l6 1-2. but they came back 10
= 116 on sales, all told, of 1sS shares, and
closed with l6 bid.
Railway Is steady at So 1-2. Potomac
Consolidated sold TO the extent of $4,000
= at 100 for the first bond and 80 rs there
after.
= Higher asking prices were quoted for
MRaflway and Electric, but the bid price
Atzmained at So while 81 1-2 was asked for
both issues.
Union PHcific's Melon.
F. Everybody is talking about a melon
from the Union Pacific directory 10 its
shareholders, past due and now slated
for arrival before the end of the current
week The Washington Herald has taken
1 the stand that the Union Pacific directors
7 should. conserve the millions received for
!. assets largely paid for by bonds; that II
. should keep this large sum for future
: uses rather than disburse it just for the
sake of larger dividends and the satisfac
tion of shareholders now receiving 10 per
cent on their investments.
These are not times of plenty. The
o. possession OF millions. in the treasury is
. worth having: it saves further note or
bond issues; it makes road indie
pendent
Wall street JOurnsI Comment.
. On this matter the Wall Street Journal
: makes the following comment:
Docs this hinge cash fund necessarily
present = dilemma TO the Union Pacifi"
--rirectors? II represents in part and
! that a minor part. profits on a saEacious
> investment carefully matured for dec
: ade. For the rest, it is composed Of
p capital originally secured through the
: issuance of bonds, some OF which have
since been exchanged for Union Pacific
! common stock, dollar for dollar II the
: directors desired to distribute more than
the mere profit on the Southern Pacific
venture. amounting to perhaps S2N,0O0,-
---GOO. or less than 10 per cent Of the COM
mon stock alone. without laying them
selves open- to the charge of dissipating
the company's assets, they could do so
only on the theory that the amount dis
tributed in excess of 900 was drawn,
not from capital assets, but from sur
plus divisible income received since the
REORGANIZATION of the company and with
held from the stockholders. The surplus
so required would suffice for a special
dividend of generous proportions, and II
may be conceded that such theory of
distribution might well solve the difficult
question of the rights of the preferred
stockholders since the company's char
ter clearly limits their share in current
income TO per cent dividends.
Tt might be argued that the company
could distribute. in addition to the So.
10000 profit on the Southern Pacific
stock the amount realized on the pur-
chase of Northern Pacific stock, and
subsequent sale of Northern Pacific and
Great Northern. after the dissolution of
tIhe Northern Securities Company. But
this fund, as he repeatedly took pains
to make clear Mr.. Hartman invested
in Illinois Central. New York Central,
and Baltimore and Ohio (the first Pur-
ehase), and not only the profits on the
% Northern Pacific venture, but very con-
siderable amounts besides. Without
liquidation Of these investments the
stockholders could not accept the theory
of a distribution of Northern Pacfhc's
profits to justify them in dipping into
the company's new-found cash.
Go Into Property.
As for the theory of distribution of the
accumulated surplus income of past
years. the justification of railroad profits
in excess OF necessary interest charges
and reasonable dividends. is that such
profits go into the property, and, by scrv-
ing the public free of interest cost, inn
prove the service. while they raise the
carriers credit II it should again be
demonstrated. rs IT has been occasionally