The Washington herald., 1914-03-15
TRUST COMPANY
MAY REORGANIzE
United States Stockholders
Considering Resumption OF
Business Following Sales.
N. Y. PRICES IMPROVE
H. B. F. Macfarland Writes Secretary
McAdoo in Behalf of Capital as
Federal Reserve City.
N. Y. PRICES IMPROVE
by w. srHLEy.

BY w. sTEALEY.
!. vas reported in financial circles yes
.erday on apparently good authority
THAI q number q the stockholders of the
United States; Trust Company are in
favcr OF rer;yifyinS the institution, anc
Il is believed that this will be brcSgh'
aoout.
Tho success which has attended the
sale OF property through the Munsey
Trust Company LEADS to the belief that Il
vii! rot be a great while before the real
cs;ate holdings are disposed OF, leaving
the Fifteenth aud n streets ONCE cnly
remaining.
The two Companies are said TO be
working in harmony anj Shat satisfac-
tory arrangements can be made for the
retention of tine SeposiIs at Fifteenth
and II streets
The plan as tentatively discussed YES
terday involves a reorganization, reduc-
tion of capital and the retention of the
United States Trust Company name.
Wall street Tone Better.
The New York Stock Exchange yester-
day closed with fractional gains.
Exceptions were Chesapeake and Ohio
and New Haven.
Steel closed at 81 5-s, a gain of nearly
a point; Reading closed at 1s3 3-i, and
Union Pacific I57 rs. Copper and Can
both showed strength.
Returns from the copper and steel
trades were Unexpectedly good.
The weakness OF Chesapeake and Ohio
was due TO the fact that the Circuit Court
had handed down a decision at Columbus
ordering dissolution of the soft coal
trust
Hooking Valley. Chesapeake and Ohio
and Lake Shore railroads are given sixty
days in which to dispose of their hold
inss in Sunday Creek Coal Company upon
penalty OF having a receiver or commits
sioncr appointed at end of that period
To make the sale.
It was ordered that either the interest
OF Chesapeake and Ohio in Eanawha and
Michigan be purchased by Lake Shore
at once Or interest Of both companies be
sold absolutely.
Local stock Market.
Trading in tho Washington Stock Ex-
change yesterday was confined to the
stock department.
Ten shares of Commercial National
Bank stock sold at IS5. and a bid WAS
made for more Of tine stock at lSs.
Railway common brought IS for q
sllires and 81 L. for 25 shares. Twenty
five shares of Capital Traction brought
1l0
Eight shares OF MergenthaIer sold at
eh1-S. at 2I5 IL. One share of Lanston
brought s. IL.
MarfarIand Writes McAdep.
The Secretary of the Treasury yester-
Gay received from II. B. F. Macfarland
an exceptionally strong letter in favor
o: Washington's being selected as one
o. the Federal reserve cities.
The letter is asfollows:
ITO the Honorable Secretary of the
Treasury, Washington. ID. c.
Sir: As a citizen of the National Capt.
tai deeply interested in its welfare. and
for ten years its official servant as presi-
dent of the Commissioners of the Dis
trict of Columbia, ! desire to add my
hearty Endorsement TO the petition of
the Washington. District of Columbia,
Clearing House Association for the loca-
tion III this city of one of the Federal
reserve banks, provided for in the Fed
eral reserve act.
Il shall not take your time by recapitu-
lating in detail the reasons SO well pre-
sented by the argument of the clearing
house committee before the Federal re-
serve bank organization committee, but
permit me to say that the chief reasons
are those arising out of the unique char
acter of the Federal city.
Il am Informed that the losns of the
different banking institutions in the Dis
trict of Columbia amount. in round num-
bers, to s65, COO .0oo, and that that fact was
not brought TO your attention by the
committee; that and all
the other facts indicating the compare
lively ls-Se business of the banking insti-
t';tinns an6. therefore. their sound char
s:ter and adsIirnrle administration. in
GcEr-s:. arc important. Ieut it-seenis To-
be aG:sl.tteG .fst :fn reGucst FOR 6 Fed
eTal reserve ba;.E here cannot be granted
on She basis OF the volume of business
transacted. for this is not q commercial
Gr r3rufactG:'f . center. and. moreover.
other cities III The pruToseG Federal re-
serve district outlined 10 "nU BY the
clearinghouse committee. have n much
Iarger populate as well rs greater
wealth
"RGf neither philadelph:a. Baltimore,
nor any other city Of the U,iited States,
i.as the special reasons for The location
Of reserve bank which are presented
by tie peculiar characteristics of the
Capital.
First of ali. tbs reserve bank here
world lie c3HtiESously and Immediately
unee: the personal observation of the
Federal reserve board. which. from its
actual workings. could derive knowledge
that might be applied 20 improve the en-
tire system. Sgch bank might also be
8 Ia1Gei TO other banks of the system
because OF the very personal supervision
that night lie given II.
The Federal reserve bank in Washing
ton. in direct daily contact and dealing
with the Treasury Department. would
have a special value as depository o.
public moneys not only because of its
being directly under the supervision Of
The Secretary of the Treasury, but also
because il might be used by the member
banks, by the other Federal reserve
banks, and by the Treasury Department
Itself, to perform valuable services in
connection with the transfer Of funds TO
and from Washington.
THE absolute sovereignty, exclusive
and supreme, Of the national govern
nent over the National Capital obviously
gives the proposed reserve bank here en-
tire freedom from any possible question
Of conflicting laws or precedents.
THE only other reason that L shall
mention is the presence here Of the am |
bassadors and ministers of the other ma
tons OF the world. all of which will
watch the operation of the new system !
with the closest attention in view of its
novel features. Other official and unof- |
fetal representatives of foreign countries |
coming to Washington to study the func- |
lions of our government must also be |
onsidered. In all these cases ii would |
.r.fo f<, hn. A.rn