The Washington herald., 1914-05-17
MARKET SHOWS
Slight CHANGES
Gains and Losses Evenly Dr.
vided in New York;.
& O. Notes Assist.
LOCAL NOTES PURCHASED
The Fidelity Trust Company Secures
Washington Utilities Collateral IS.
Speculation in Pesos.
By W. sTEALEY.

By w. sTEALEY.
London's low prices caused decline in
the New York Stock Exchange yester-
day, but at close the leaders showed
strength, Steel making up a loss and
closing 81 3-S, Fridays price.
Louisville and Nashville, closing at
3s7-S, and Canadian Pacific at 19s, showed
gains.
Copper Union. and Reading were off
fractionslly.
Mexican Petroleum was firm at s..
Trading was dull throughout the day.
only 1000 shares being sold.
The sale, at par of the entire lot of
,0e0 of Baltimore and Ohio L.
Per cent one-year notes within an hour
after the hooks We're opened Friday. was
regarded as an evidence of returning
confidence among investors, ana had a
good effect upon the market.
Brilliant crop reports and the possibility
that the Interstate Commerce Commission
will advance rates continue to offset
Congressional activity in the opinion of
the more optimistic traders.
Local stock Exchange.
Ten shares of Continental Trust Com
panyy stock sold on the Washington Stock
Exchange yesterday at 123, a gain of IL
points over the last sale.
The advance was due to the coupany's
giving on 6 per cent dividend basis
Thursday. At the close 10 was bid and
124 asked.
The principal trading yesterday was in
Railway preferred. Two hundred shares
sold from 81 to IS. Capital Traction sold
at 90.
Washington Gas continued weak, five
shares selling at a.
Bond sales were light. One 1900 Trac-
ton IS brought 107 10, one $1,000 Railway
As IS. one $500 Railway As So 3D. and two
Sl,0c0 Washington, Alexandra and Mount
Vernon at 81.
LEGAL Notes Purchased.
The Fidelity Trust Company, of Balti-
more, has purchased from the Washing
ton Utilities Company N.50O.0O0 one-year
5 per cent collateral trust notes dated
May /. 1914, which are being offered on a
SIS per cent basis. The notes are secured
by the deposit of 1900 shares of common
stock Washington Railway and Electric
Company. The Washington Utilities Com
pany agrees in the note indenture to
limit the payment of dividends on its
stock during the life of the notes to
per cent year. Earnings of the issuing
company applicable to note interest are
about three times the amount required to
meet the interest on the notes.
New u. a ". 1OrtSdSes
In connection with the sale of the
Baltimore and Ohio notes. the announce
ment of President Willard that the COM
pany is at work on a blanket mortgage
under which all future refunding and
bond financing by the company will be
cared for is interesting. While no figures
are given, it is believed that the new
mortgage will be for at least $500 200 coo.
1t must provide for refunding needs
amounting TO more than s3S5,OOO.OO of
bonds outstanding, besides the S350o0.ooo
of notes Just issued and the SSl.eO0,oOO
of the baltimore and Ohio Chicago
Terminal Railroad, making an aggregate
of Si25 OO0.Gae
A mortgage for SOC .OOo which would
leave room for additional issues of $175,
6G0,e00 for improvements and new con-
struction, would equal in size the refund
ing mortgage executed by the Great
Northern three years ago. The first large
maturities 10 be met by the Baltimore
and Ohio are Sc. O0o 900 of prior lien bonds
and 100000 of Southern Division bonds
in 1915.
Block Signals Gaining.
Official figures compiled by the Inter-
state Commerce Commission show that
as of January l last 50 per cent of prac-
tically the entire passenger service
trackage of the country was protected
by block signals. either automatic or
hand-control The statistics cover total
trackage of 2l4.01 of which 13.3o9 was
thus protected, Il, ISL miles by automatic
block signals and 6S,siS nonautomatic.
This protected trackage was on Sc, 736
miles of road. compared with aggregate
miles of passenger line of 1886 In the
1918 calendar year there was an increase
OF 1850 miles in the length of road op-
Grated by the automatic block system,
and decrease of 1,5S5 miles Of uon-
automatic system.
Railroad complaints concerning their
compensation for carrying the mails will
not cease until there is a revision of the
present form of government mail con-
tracts. Many incidents have been cited
to illustrate the disadvantage under which
the railroads are laboring in the matter
Of carrying mails, but none have been
more Illuminating than one told yester-
day.
This week ton of iron ore was shipped |
over the entire length of the Minneapolis
and ST Louis parcel post. Done up in
ffty-pound packages, the ore was trans
ported in the mail coach of a passenger
train. As freight, the Minneapolis and
st. Louis would have received its proper
freight rate for carrying this ton of ore.
As parcel post matter, and under the old
government mail contract, the road re-
ceived nothing.
Mexico's weak credit position comes
from internal disorders rather than from
poverty. The great need of Mexico is
both its friends and its enemies by the
way It is getting things done or its
limited resources. Not only Is the gov