The Washington herald., 1914-09-12
RAILROAD LOSSES
OF FISCAL YEAR
Eastern Lines Which Asked
for 5 Per Cent Are
Hard Hit.
MUNICIPAL BOND OFFERS
Steel Found to Have Comparatively
Few Foreign Holdefs-Wheat
and Exchange. -

ana Exchange. Z"
Operating income of the, thirty-hvt
Eastern railroads which were. parties 70
the application for a 5 per cent increase
IN freight rates, decided adversely by the
Interstate Commerce Commission during
the panic, amounted TO $273. QssS3 In the
year ended June 80. 1914 This was T4,-
Oo2.bS1, or q per cent less than In 1913
1t is SSS105,lS2 less than in the year 1910.
In opening the Eastern rate case Daniel
Willard, of the Baltimore and Ohio,
stated that in the fiscal years 1911, 1872,
and 1913 these roads had increased their
property investment by $3.50 100000 and
statistical exhibits, made up from rail-
road reports to the Interstate Commerce
Commission. were filed showing the same
fact In those years the operating in
come had declined upwards OF $4,000 OOO
Last year added a further decrease Of
S74.00oOoO, to the loss Of which the rail-
roads complained when they opened the
rate case
This great loss however, was far from
unexpected. More than a year ago the
railroad officers in charge of the Eastern
rate case predicted, from the facts then
established that net revenue would de-
cline practically throughout the 1914 fs-
cal year. The unexpected did not hap-
pen until around the first of August
put stop to export shipments from the
interior and checked the Improvement
which had then begun in domestic mer-
chandise traffic.
Municipal Bond Question.
There is a large and ever-growing list
OF municipal bond offerings which, since
the war, have failed to elicit bids ''Mu-
nicipals" have thereby been the recipi-
ents of good deal of unweIcome pub
hcity, when as a matter of fact all Dor
rowers-government and privAte-are in
the same boat If the financial transac-
tons of private corporations were con-
summated under the same white glare
of publicity, it would probably be found
that many would-be corporation borrow
ers also have been disappointed in recent
weeks.
That so many municipal issues have
failed is explained by a special set of
circumstances. The investment houses,
which are the wholesalers of municipals,
are taking an enforced holiday. For the
good of the financial situation no gen.
eral efforts to sell bonds are being made,
and naturally enough no new issues are
being purchased. The object is to reduce
rather than increase loans.
1t may be accepted as fact that the
Discrimination of bankers to buy munich
pals, as evidence in the past few weeks,
security. Capital is worth more than it
was in July, and may be worth more in
the future, yet it would be a mistake to
consider that a decline in municipal bonds
which takes place during the readjust-
ment reflects any undermining of their
security. Until trading and bonds be- |
gins on something near A normal scale, |
ket on municipal bonds.
Steel Holdings Abroad.
Financial circles show keen interest in
the statements showing the change in /
foreign holdings of the United States
Steel stocks from the time OF the closing |
of the books at the end of June TO the |
closing for the next dividend, on August |
81.
The time covers the period of liquidation |
produced by the European war. and the |
actual change in the amounts of the for |
eign holdings of the stocks is small As |
an indication of the extent to which there |
was liquidation by foreign investors in |
American securities generally, the show
ing is enlightening and reassuring.
On August 81 the foreign holdings of |
United States Steel amounted TO 1,235,9Z7 |
shares, a decrease OF IS. 800 shares, or ap- |
3 per cent in the three |
months. In Steel preferred the decrease |
of foreign holdings was relatively smaller |
than in the common, further indication
that investment holdings were not seri-
Ously disturbed.
OF the LBS, 81 shares of common stock
held outside of the United States, 753, %
shares were owned in England while Hol-
land, with S50,525 shares, was the next |
largest holder Germany's holdings were |
exceedingly small its investment in both
stocks OF the corporation being of a
smaller par value than that of Ireland.
~
measure TO promote a more optimistic
feeling.
Wheat aud Exchange.
The recent decline in the price of
wheat has been explained by the grain
houses on reasons which easily suggest
but which seem to be rather
wide of the mark The popular explain
alton is that there has been profit-taking;l
while the possibility that he Europeani
war may be Of comparatively short dur
alton has also figured in the gossip of the
pit.
The chief explanation. however, is
quite different. 1t is found in the move
ment in the exchange markets, which
gives he dollar a value relatively much
higher, when compared with the English
sovereign, than it possessed last week.
A week ago demand sterling was quoted
at about SEQ, but it recently fell as low
as A.97. That decline Of cents would
mean a very considerable drop in the ex-
port price of wheat, and II exchange
continued to decline, the grain markets
would be Influenced by it to an extent
which might counteract the effect of an
increase Of the export demand for the
cereal. II
England Owes Lanston.
A director of the Lanston Monotypel !
Machine Company says that the action of
the board is passing the quarterly divi- !!
lend Of that company was due entirely to
the fact that the company had a large T
amount of omen ydue it in England /
through its London subsidiary, the Lam !
stOn MonOtype Corporation, Ltd, anal
that its debtors failed to meet heir bills.
For his reason, although earnings of :
he American company were entirely sat l
sfactory, it was deemed wise not to c
make any disbursements to stockholders I'D
NTH markets abroad were more settled. b
CHICAGO WHEAT MARKET. d
Chicago, Sept. u--EEport purchases Of wheat in