The Washington herald., 1914-03-29
BEARISH FACTORS
CONTROL MARKET
Prices Again Decline on New
York Stock Exchange,
Closing Poor Week.
ROADS LOSE MILLIONS
Mail Carrying Means Underpayment
of $4,000, 900. Says Com
mittee Chairman.
ROADS LOSE MILLIONS
BY w. sTEALEY.


The New York stock market yesterday
was dull and uninteresting with prices
fractionally or
Steel closed at 6s is. a loss Of is;
Reading I65 is. loss of SIS, and Union
l5S is, loss of Is
The reaction in the market the past
week has been mainly the result OF fresh
bear pressure and scattered liquidation.
While the setback in prices has been
rather severe from Mondays highest lev
els those best informed do not see any
good reasons for pessimism. They believe
the question of permitting the railroads
TO Increase freight rates has now as
sumed such national Importance the COM
mission will be forced to grant most OF
the railroads 9 1-2 to per cent increase.
In the meantime all the bearish factors
in the market are being magnified in the
effort to create fresh turns on the short
side.
Local Stock Market.
Trading in the local stock exchange
yesterday was on wider range and in in
creased volume.
Capital Traction IS featured. four 81. 900
selling los l-2 and one $500 at los SIS Two
Sl,0O Railway IS sold g. and one 500
at 50. One $500 Columbia Railroad s
brought 100. One $1,000 Potomac Electric
For the first time in several months a
government bond was sold. one 500 3
bringing 1O2-
Ten shares of Washington Loan and
Trust were sold at % One hundred and
sixty-six shares OF Capital Traction
brought 107.
The price of Railway common and pre-
ferred did not change materially. Twenty
five shares of the common sold at 81 H.
EN-a gI. 80 -, O.
shares Of Washington Gas brought s. IL.
Railroads Are Underpaid.
The railroad companies of the United
States claim that data compiled by the
Postoffice Department properly inter-
preted. shows the railways TO be under
paid by Se9O0O.O0O annually for carrying
the mails.
This statement is made in a pamphlet
issued by the committee on railway mail
pay. representing 264 railroads handling
mails on 21S.O0O miles of line. through its
chairman, Mr.. Ralph Peters. president of
the Long Island Railroad Company.
The railroads point out that whereas
postofflce revenues increased over $4,000,
GO from 1907 to 1872 the railway mail pay
in that time actually decreased over S50O.
100 before the parcel post was estab-
lished.
The pamphlet also directs attention to
The fact that the Postoffice Department
estimates further increased annual rev.
cnue of about $GO,OUO.OGO on account of the
parcel post, and in spite OF this no prac-
tical action has as yet been taken ade-
quateiy to compensate the railroads for
carrying the increased burden.
Lewis johnson & Co.-"Advices from
all parts Of the country indicate that the
pending decision in the matter of in
creased freight rates is the dominant
influence in the financial world. The
need for favorable action is great and
business demands 1t as a condition per-
tinent to prosperity. The absorption of
securities. especially in odd lots, is a
convincing evidence that the public re-
lies upon A decision favorable to the
righteous cause of the railroads. con-
siderable volume of European capital is
awaiting confirmation of this view, and
the tide of investment seems certain to
be augmented BY liberal demand from
abroad. Given the new demand and an
easy time money market. the future of
the bond business must be assured.
There is steadily increasing confidence
in municipal and public service issues,
and the time for considering second
choice issues cannot be far off. because
demand is constantly reducing the in
terest return on bonds Of the first grade"
Exchange Bank Ready.
The Munsey Trust, Companys branch
at Twentieth and Pennsylvania avenue
was formally taken over yesterday after
noon by the Exchange Bank of WASH
ington. which will commence business
at once under the new organization.
r. l. Montague is the president and
] I'm B. Flynn the cashier.
The following directors have been
chosen: r. L. Montague. Mark F. Fin
icy, Michael ] Keane. George .. Haven
ner. Alex ]. Schwartz, DIR. Henry NJ.
Dixon, John b. Flynn. c. A Pfau, NJ. z.
Buckley. P T INLAND, Elmer Sothoron.
F.. W. Whiteside. II. F. Taylor. Hugh
F. Harvey, L. Grant Smith. f. T. Quig-
ley. J. Z. Donovan. Clinton James. and
Victor J. Evans.
The company is organized with a cap
ital of $4,000 and surplus of $4,000. Many
Of the directors are business and pro-
fessional men in the vicinity of the bank.