Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-10-21
VALUE Of
SECURITIES HELD ABROAD
Estimated That Foreigners Own
Over Five Billions of American
Railroad Issues.
Stocks and Bonds-Finan-
cial Notes.
BY I. A. FLEMING.

l
| In response to inquiries directed to
| American corporations as to the VOL
ume of their securities held abroad.
liza companies have made answer to d
leading financial publication. stating
| that S416.692.56S of their stocks were
owned in Europe, their information
being based on the payment of divi-
dends.
| The trading list of the New York
stock exchange aggregates stock OF
par value of s5.O46,604,OS3, so that the
reporting corporations show foreign
holdings of 915 per cent of the list.
| 1t is generally admitted that the
actual foreign holdings, railroad STOCKS
and bonds, are over $4,000, 100000. and
this is the chief stumbling block to the
reopenins of the security exchanges,
except with restrictions that will pre-
vent free and open trading VI the
We billions held abroad the holdings of
| railroad bonds will approximate s5'-
| 4OO, 900, 900, and of railroad STOCKS $l'-
| 100000.
| Foreigners in the troubled zone not
\ ONLY find difficulty in iiquidatlng their
own securities, but they must accept
most severe reductions IN Vaiues. NAl-
urally, in order to obtain FUNDS tney
| Is the least: where the best price may
be realized. American stocks and hOnds,
| if the market was wide open, Woulo
would come over in quantities. uniess
as stated time and again the inter-
state commerce commission OTIS at
torneys should be neutral but they
are not), decide that the time Tor qulo-
bling is over and the time for putting
values under American securities Is
now. .
Steel shares total 1922, 440.500 of the
common and $27.514,000 of the pre-
ferred, showing but little acumen on
the part of the foreign investor. save
on the preferred stock. where the IN
vestment is small and the security more
| than ample. If Steel preferred was the
only security affected. the exchanges
might open tomorrow.
The company could in all probability,
liquidate and pay on the preferred. par.
Foreign holdings of Pennsylvania. st.
Paul, Southern railway. Kansas CITY
Southern, New York Central and Ameri-
can Telephone and Telegraph are not
likely to cause any trouble IN the maj
Canadian Pacific, heavily held in Eng
land, might not cause much uneasiness
because 1t is great favor1te.
With the real earning powers OF Amer
lican railroads made sufficient by better
rates, the desire to liquidare will not
be near as great. Value under the ran.
roads and less regulation and pursuit
Of big business would go far toward re-
storing the American nation and Its
securities to the great prosperity list.
Lake Shore Stock, $500 Share.
The contesting minority shareholders
who opposed the consolidation Of the
Lake Shore and Michigan Southern
Railroad Company with its chiefest
stakeholder. the New York Central. hav-
ing been refused the injunction to pre-
vent the merger asked in an Ohio court.
the majority owner under the provisions
Of an Ohio law, and will receive $500 a
share for their stock-some. consolation
than usually falls to the lot Of a
minority holder.
Chapter Meeting.
The first meeting of the local chapter,
American Institute Of Banking, to be
held at headquarters tomorrow night
should be very interesting. Secretary
Willis of the federal reserve board will
deliver the first of course of lectures
on the new financial system. Chairman
Wolf Of the clearing house section of
the American Bankers Association, one
of the experts now in consultation
with the federal reserve board, and
one of the best posted men on the new
law, will also address the meeting.
The District Bankers Association
contributed $3.50 to the chapter at its
annual meeting Monday night.
Will Decide the Question.
1t is up to Messrs. Harding, Warburg
and Broderick, an able committee, to
definitely decide for the federal re-
serve board just what commercial
paper is. On this ruling will depend
the all-important question of what
paper is eligible for rediscount under
the provisions of the new law.
Commercial paper heretofore has con-
hand of rated houses of good standing.
manufacturers. wholesalers. retailers
and individuals, not always issued in
payment of bill of goods, but fire.
general use in business way. and
notes of men in business who are rec
ognized by bankers as good for the
loans they contract.
that only bills of acceptances and notes
issued in payment of obligations for
merchandise, etc, are valid CONNER
cial paper there will be more or less
change in the methods OF banking.
Financial Notes.
R. N Harper, president Of the District
Bank. is on a vacation in northern New
York.
Local bond houses are doing a fair
business in high-grade local issues.
government bonds and municipals.
Washington investors are picking and
choosing.
Pullman Company, Jersey Central and
Warwick Iron and Steel have all de-
clared regular dividends.
Bank clearings in New York de-
creased $1s9,OOO.000 yesterday. in Chi,
cago SIS. 100 in Baltimore $3.50, and
in Boston $4,000 900
Philadelphia took out 100000 emer-
gency currency yesterday.
President G. E. Fleming of the Bank
ers' Association is enjoying a holiday
in Pennsylvania. He will return to the
city Monday.