The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1914-01-08
TRADING BRISK
ON WALL Street
B. & O. and Union Pacific
Still Topic Of Interest, on
Stock Exchange.
ANNUAL ELECTION NEAR
Washington National Banks Name OF.
6eers and Directors Tuesday-ln-
terest in New York Hearing.
BY w. sTEALEY.

Trading was active on tne NeW toih
Stock Exchange yesterday. and the In
creased sales of stock showed up advan-
tageously.
Interest in the Union Pacifc's distribu-
ton of Baltimore and Ohio stock. which
will be formally ratified today, was stiil
q lively topic of interest.
There are two phases of the situation
about which there is much speculation.
One is as to the effect the distribution
of this huge block of stocks will have
on the market value of Baltimore and
Ohio shares, for II is reasonably certain
that some Of II, and not unlikely very
considerable portion OF il, will come on
the market, causing more or less irregu-
larity until 1t finds permanent Judgment,
and the other is the possibility of other
corporations taking similar action de-
signed to break up interlocking direc-
torates.
Shares May BE Retained.
Many of the stockholders of the Union
Pacific Railroad also are holders of Bal
timore and Ohio shares. and the assump-
ton in financial circles is as these inter-
ests are satisfied with their investment in
the stocks, many of them will likely re-
tain the shares they win receive when the
distribution finally is made. as well as the
shares they now hold.
Still, the action of the market since the
announcement of the plan would seem to
indicate that a large amount Of the
stocks have been sold against the proper
ton Union Pacific stockholders will re-
ceive of Baltimore and Ohio.
Selling was resumed when the market
opened yesterday, and while liquidation
was not as drastic as 1t was Tuesday.
still the stocks came out in rather large
quantities and the price Teceded to IS is
and fiuctuated around that figure during
the greater part of the session, closing,
however, at 50 IS, q gain Of over a point.
Another reason attributed for the sell
ing was a fear that the distribution pre-
saged a possible reduction of the Balti-
more and Ohio common dividend. Per-
sons close to the management OF the
railroad, however, said there was no rea-
son for any such supposition. The Balti-
more and Ohio directors will meet today
to act on the semi-annusl dividends,
which will be paid on March 1 next
Reading zig-zagged from l69 Ia to l6s "a,
several times. Below 169 excellent sup
port developed.
Little difficulty was found in moving
up several Of the less active, issues.
Southern Poetic WIS Jumped from 81 IA
to 81 80, and the advance held. Traction
shares responded easily, but failed to
make any material gain.
Harvester rose from lO3 1-2 to los IL
and as the move had been promised,
profits were made by the professional.
Short covering advanced Northern Pa
cffic a full point. The quarterly dividend
comes on on Friday.
Steel Reeedes, Slightly.
Steel recedef slightly. Attempts were
made to depress the price. The stock
Showed support. Norfolk and Western
dropped to 1001-2 The selling on this
issue and in several other investment
stocks was attributed to insurance COM
panies who were thought to be marketing
some of their investments.
Bonds were again active and strong
with trading up to Tuesdays high figures.
Union Pacific convertible Is developed
strength on large dealings, and Wabash
refunding Is jumped from 81 1-2 to 81.
The buying in this issue is notably good
and of a character that suggests a further
appreciation in price. New York railway
adjustment IS were heavy, and Brooklyn
Rapid Transit Is strong Bonds of
the better grade were in good demand
market showed decided ease with call
loans renewing at }. Banks are gaining
from the subtreasury.
Local Stock Market.
On the Washington Stock Exchange
yesterday one $1,000 Capital Traction 5
sold at los, one 1000 Washington Railway
and Electric at so and one 800 Norfolk
and Washington Steamboat 5 at los.
In the stock list ten shares Of Federal
National Bank brought 134 3-S. Twenty
two shares of Washington Railway and
Eclectic preferred were disposed of. If
teen at IS IA and seven at IS. Seventeen
shares of the common sold at Sc IL.
Thirteen shares of Washington Gas
sold at 81 and twenty-four shares of Mer-
genthaler at 212 -. Two shares Of Cap
ital Traction stock brought ia
A bid for $4,000 worth of Potomac
Electric Consolidated IS at 80 was made.
but it failed to bring out any Of the
bonds.
-.. What New York Wants.
Washington bankers are following with
great interest the hearings now being
held in New York by the reserve bank
organization committee. The testimony
of ]. p. Morgan to the effect that there
should be three banks in the Atlantic
Seaboard, New York, Washington, and
Atlanta, was regarded as especially favor
able to this city.
Bankers here believe this will be the
Washington district to include Eastern
Pennsylvania, Maryland, Virginia, West
Virginia, and North Carolina
There is every reason to believe that
the reserve bank organization committee
will not seriously regard the attitude of
those New York bankers who yesterday
advocated the establishment of a regional
bank Of overshadowing Importance in
New York City. Such a bank in the last
analysis would mean a central bank in
that 1t would dominate the rest of the
country. 1t was exactly this feature that
the trainers of the currency act sought
to prevent, and II is taken here as a mat
ter Of course that 1t is the intention Of
the committee, headed by the Secretary
of the Treasury, to enforce the spirit of
the Federal reserve act.
The merits Of the central bank propo-
sition were threshed out thoroughly by
Congress, and the plan was not regarded
with favor.
1t probably will be found that the COM
mittee viii designate districts which will
as nearly as possible. Later the
Federal reserve board, which has the
power to review the findings Of the re-
serve BAN. organization committee, will
make such changes in districts as the
operations of the act indicate are adj
Bank Meetings Tuesday.
National hanks in Washington and
the country will hold their
annual meetings Of stockholders next