The Washington herald., 1914-02-07
BONDS feature
ON WALL Street
Stocks OFF Fractionally, but
Easy Money Induces High
grade Buying.
RAILWAY COMMON UP
B. & o. Distribution Will Take Place
by April Income Tax and
Holders of Securities.
COMMON UP
BY w. sTEALEY.

opening of the New York stock Excnshse
yesterday Most of the leading issues
showed fractional losses from Tnursoay.
New Haven and Reading showed gains
for the day. The former declined to I2is,
but closed at 20 "a, gain for the day.
Reading closed at 1S7 3-S fractional
gain. Steel closed at s. Is. q slight loss
Union Pacific Northern PACING, Amer
ican TELEGRAPH, and Baltimore and Ohio
closed fractionally lower. Canadian
Pacific closed at nc, loss of points.
American Can was firm, closing at 81 IA.
, Demand for high-grade bonds still
keeps up regardless Of the declines in
the stock market. The course of the two
departments of the security market is ex-
planned by the fact that the rapidity OF
the advance in stocks very naturally in
vited much selling of proft-taking
character, and its recent status has been
further affected by recognition of the
fact that the expansion in trade, the ex-
pectation OF which helped SO largely to
carry stock prices upward, Is still short
of full realization.
Time Is Requircd.
II is well under way, but. in the very
nature of things, time is required to bring
about the favorable change which during
last month come TO be so universally ex-
pected The bond market. on the other
hand. continues to feel the impulse i'm
parted to it by the far-reaching change
for the better which has come over the
money markets. Ease in money, so far
as bankers can judge, is promised for an
indefinite period. and this prospect has
induced a large amount of buying of
high-grade bonds by banking institutions.
Local stock Market.
The advance in Washington Railway
and Electric common wassth feature OF
the trading in the local stock exchange
yesterday. The stock sold at 81 Wednes-
day, but yesterday 45 shares were sold.
30 7-Sas3. Later 81 was bid for the stock
and sS Is asked. Increased strength was
shown in the bonds of the company, $500
in IS selling so 1-2as2.
One s1,0oo IS of Capital Traction sold at
1as Forty shares of the stock Of the
company sold 11la1l2.
Two 1900 Potomac Electric 5s brought
Jos 1-2.
Ten shares of Norfolk and Washington |
of Mergenthaler nc 1-4a21e H. Six shares /
of Washington Gas. s. H.
r.f n. & o. Distribstion.
Now that the hitch over the right of
the preferred stockholders of the Union
Pacific to share in the S., 10000 distribu-
ton Of Baltimore and Ohio stock has been
legal proceedings, il is expected the stock
will be handed out by April l.
The distribution was prompted by At
torney General McReynolds, II being in
keeping with his scheme for separation
of the Union Pacifc-Southern Pacific
Roads provided for in the decree Of the
Supreme Court
This distribution will make it prac-
tically impossible for any single interest
nf
and Ohio. The Union Pacific has 1900
common stockholders, who will get their
proportionate share of Baltimore and
Ohio stock. This will, with the 1900
stockholders now on the Baltimore and
Ohio books. make close to 10000 stock
holders scattered all over the world,
evincing the difficulty TO be encountered
in any attempt to centralize the holdings
of the stock.
Income Tax on stocks.
An important ruling has been made by
the Treasury Department which will be
Ct decided interest to holders of securi-
ties. The department has decided to per-
nit appreciation and depreciation in the
value of stocks as a factor to be in
GUIDED when the taxpayer is figuring his
profits and losses for a year. Il will
lie necessary for such a stockholder to
keep a record Of his transactions in
formal way. IL ne can count oepreCld-
ticn as a loss the taxpayer must count
depreciation as a gain. In any event, the
result will unquestionably leave a good
deal to the inherent sense of honesty.
The report of the Public Utilities Com
mission to the effect that s2.700.0Oo worth
or bonds of the Washington Railway and
Electric Railroad mature between Oc-
tober ! and February /, and that no
funds have been set aside to meet them
does not correspond to current report.
On October !, sl,0Oo.0oo of the Columbia
Railway Company bonds mature and that
amount of Washington Railway and
Electric bonds have been set aside with
the United States Mortgage and Trust
Company, Of New York.
1t is estimated that in the United
States the outside demand for securities
consists of 50 per cent investment and 40
per cent speculation up to the present
time In London it is estimated to be
about 50 per cent investment and 20 per
cent speculation. London private advices
say the greatest investment revival in
history may be expected between now
and fall. II
The S4,Oo0.0oJ New York and westches-
ter Lighting Company As, which were I
offered last week by Messrs. j. and w.
Seligman & Co, and Messrs. Clark. |
Dodge & Co. OF New York City. have
been sold.