The Washington herald., 1914-06-28
STOCK MARKET
HAS Dull DAY
Prices Show Gain, but Trad
ing Moves IN Narrow
Range.
LOSSES IN DIVIDENDS
Stockholders Proceeds Gut Two
thirds W. R. & E. Company
Financing.
BY w. STEALEY.

In a dull days trading. sales amount
ing to only 1000 shares. prices were
frmer on the New market and practically
all of the leaders showed fractional gains.
Steel closed so S-S, Reading 162 3-s.
Copper IS IA. Unions price was un-
changed at 153 Is
The week on the market was hard
one and the gains Friday and yesterday
showed the market to be in a strong posi-
ticn. The Supreme Courts intermountain
case decision. followed by the Clafin fail
ure, ought to have been more profitably
worked by the bear element. 1t was
fortunate that so few weak accounts on
the long side were on the books of the
commission houses. If the technical po-
sition had been weak in this way the
market would have broken badly on
Thursday
The Clafiin liabilities seem widely
distributed that the loss is not apt to
cripple any one. The weakest subsidiary
stores are situated in cities where bust
ness is good and where stocks on hand
can be sold readily for cash. The only
thing to be feared is an unjustified re-
striction in credit on the part of smaller
banks.
LocnI Stock Market.
Sales in the Washington Stock Ex-
change yesterday were confined to the
sale of bonds.
Six $1,000 Capital Traction SIS sold at
los, and four Sl,Oo0 Potomac Electric Con-
solidated SIS sold at GO 5-S
For Capital Traction stock SO was bid.
for Railway preferred So IL. for Railway
common s. 10 and for Gas 76.
Great Loss in Dividends.
1t is needless to say that the announce
ments every few days of dividends being
passed or reduced is having it effect
upon investors as well as spectators.
Most of the railroad companies have
had such a hard time that the investor
fails to see how dividends are going TO
be resumed unless there are boom times
ahead The investor is the man who
wanSs to be shown, and the consequence
is he is holding his money. In fact sert-
ously considering the situation, 1t is
little remarkable that the investor has
not been selling on a greater scale He
probably has been restrained by the
attitude of the President who, of course,
may be right to the future.
Several days ago The Herald printed a
paragraph that dividends to railroad
stockholders in the last year had been
reduced from approximately S3o,OO0,OOo to
.SI0OOO,OO0.
A careful compilation of reductions dur
ing the past fourteen months makes the
comparison even more Unfavorable. Since
January l, 1913. twelve great railroads
have stopped dividend payments alto
gether and two others have cut their divi-
dends. The fourteen roads are now pay
ing out dividends amounting to S, ,526, ,066, |
as against S33, 6S7, ,375, loss OF S23,OOOOOO. !
1t is also stated that approximately |
fifty industrials either have passed or
reduced their dividends during the same I.
period.
Unless business does improve by the |
September or December quarter reports of |
such railroads as the Pennsylvania and
New York Central show that their divi- !
dend rates cannot be maintained.
Southern Construction Work.
Among the Southern construction plans
reported this week are the following:
Southern Railway Company will en-
large freight yards and shop facilities at /
Richmond and South Richmond, Va, in
cluding remova, of passenger depot and
erecting freight depot, providing ware
house, rearralIge tracks and construct
new ones, etc. at former point and erect
combination depot, construct tracks.
bridge, extend roundhouse, shop, etc at
South Richmond.
Atlantic Coast Line Railroad will build
shops, rOundhouse, turntable, planning
mill. etc, at Florence, S. c., to cost
$4,000.
Southern Railway will build round
house at Birmingham. Ala. to cost s75,-
0OO
With reference to the future financing
of the Washington Railway and Electric
Company, the proceeds of the 81 900 900
Is recently taken up in Baltimore and
New York are to be used in retiring $780,
900 IS extension mortgage bonds of Co
lumbia Railway Company and the $780,
900 6s Of the same company, due October
l, 1914.
OF the $17.5OOO0O Of these per cent
consolidated mortgage bonds authorized
all $50 have been issued and the re-
naming S,s57, $50 are reserved to retire
like number of underlying bonds, no
issue of which natures until 1925, when
A.SJO,O0 Metropolitan Railway IS first
mortgage bonds will become due. The
next maturity after this will be S1,70o,-
600 Potomac Power IS first MORTGAGE
bonds, maturing in 1929 r
The steel rail requirements of the Penn
sylvania Railroad system for the current
year amounts to 157.o52 tons, of which