The Washington herald., 1914-05-26
MARKET SHOWS
SMALL DECLINES
Leaders Off Fractionally Dur
ing Another Dull Day
in Wall Street.
LOCAL CHANCE INACTIVE
Baltimore to Profit Should Wells
Fargo Secure the United
States Express.

Fargo Secure the United
States Express.
BY w. sTEALEY.
The New York stock market yesterday
closed slightly under Saturdays prices.
Regardless of the fact that the day
was regarded as crucial one In the
affairs Of Missouri Pacific. that stock
only lost a quarter of a point, closing 16%-
Steel closing at 6s5s. Union 1878. Read
ing ls5 "a, and Copper Y IL. were on frac-
tionaily Canadian, Pacific closing at
1914. General Motors ss1. and westing-
house tx was the extent OF the gain.
The Supreme Courts decision in the
"tap line cases. was construed by the
street as against the Interstate Com
merce Commission, and, therefore, had
Strengthening tendency in prices.
Trading was very dull, shares falling
under 112,ooo
Chesapeake and Ohio closed at 52k.
Reliable information says the Chesa-
peake and Ohio directors made the note
arrangements only after very careful
calculation as to the ability Of the COM
pany to meet the new obligations with
out interfering with the dividend rate
The new line for coal shipments to the
Great Lakes appears to have been a con-
siderable factor. A favorable rate de-
cision. it is said, was noted as posi-
bility, but not as a definite element in
the conclusions reached.
While time alone can determine the
accuracy of the official forecasts. there
is disposition to bull the stock around
present levels on the assumption that In
side confidence will be reflected in prices
Local Stock Market.
Yesterday was an unusually dull day
on the Washington Stock Exchange, only
four shares Of stock and two bonds being
sold.
The stock was confined to Mergen-
thaler. which brought 216 IA
Two $500 Traction IS. sold at 1o7 L.
For Railway preferred 50 1-2 was bid;
for the common, 81 IL.
The bid on Traction was 100, on WASH |
ington Gas, 76 |
Wells Fargo In Baltimore.
A deal which will be of far-reaching
consequence to Baltimore is expected to |
be closed the latter part of this week, |
when negotiations will probably be finally |
closed for the acquisition by the Wells |
Fargo Express Company of the business |
of the now liquidating United States Ex- |
press Company.
The United States Express Company
Ohio Railroad. Accordingly. the acquisi-
ton of the formers business by the
Wells-Fargo people viii mean that Balti- |
more will be given direct coast-to- |
coast express service on through line, |
which possesses also agencies in Europe, |
China. and South America.
At present the Wells-Fargo comes as
far East as New York. But the great
field of the South and Southwest will
now be opened to 1t through the Baltimore
and Ohio lines in that territory, and the
Wells-Fargo. already one OF the strong
est Of the express companies, will be in
position greatly to augment its business
What Is . Banker.
the Investment Bankers Association of
America. has just issued a bulletin
the opinion of counsel on
the operation of New York's new
law.
Under this law, operative on October
81, resident investment bankers and
houses outside the State maintaining
from using the term banker" or any
of its derivatives.
ITO make the act applicable to any
one a private banker in New York
City he must be engaged in the busi-
ness" (a) of receiving deposits sub
ject 10 check or for repayment. (b) of
receiving money for transmission"
tc) of "discounting or negotiating
notes, drafts, bills of ex-
change or other evidences Of debt" (d)
of buying or selling exchange, coin
or bullion" (e) of "transacting any
part of such business"
He must also do one or more of the
following: (a) Make use of an office
sign" or exterior sign" bearing the
thereof This would, in our
opinion, include the use Of the words
banker" or Investment
banking" on any office sign" or "ex-
terror sign" but not on stationery,
etc. OBJ Pay or credit interest on any
deposit less than $500. (c) Receive
money on deposit for any
purpose" averaging on sep
arate deposits less than $500.
By a vote of 5s.Iss. against 23,1Y. or
about $500 in excess of the required two
thirds majority, citizens of Los Angeles,
Cal, voted to issue s6,5o0.00o bonds to be
issued in constructing a hydro-electric q
power plant and transmission system
which will generate electricity from
water obtained from the city's water sup
ply system.
In a convincing report, E. W. Rollins,
Rollins & Co., who have financed large
amounts Of Los Angeles municipal Sc
cur.ties, and who also were asked to
finance this new issue, denounced the
proposed plans as part of "a policy Of
Mr.. Rollins said: In order to put this
system in operation you would
have to destroy in a large measure in ,
vestments made by the very people TO s
whom We would have to- offer your bonds
for sale. In other words you would be A
asking the bond houses to go before the J
investor for money with which to destroy =
Investments which had previously been
made in good faith. Construction of the 8
plant, which will involve at least SO. ooO.- Z
300. would entirely exhaust your debt \
limit and leave nothing for the actual 1
needs Of your city, Our own firm has
had great faith In your municipal bonds
and has bought them freely, and I'VE
would like to see the affairs Of your city
20 conducted as to keep your credit v
sound and leave sufficient money for Q
necessary future improvements"
Southern financial institutions have !,
low 3 per cent Of the total capital Of h
'uch institutions In the whole country. "
Yearly the proportion that obtained In CT
$50. but their deposits constitute but l37
Der cent Of the aggregate, a proportion :,
much less than that in the year before -
he war. Several factors must be con- a.
fdered in accounting for both condi- q
inns N he Aruf rla r. 4 n