The Washington herald., 1914-08-19
C. 80. LIKELY TO
PASS Dividend
Directors Meeting May Con-
clude to Conserve Com
pany's Resources.
CHANGES STILL CLOSED
Business in Cash Sales Show Improve
ment-Eood More Valuable Than
Gold to Europe.
CHANGES STILL CLOSED

: sale agreement. which provided that so
much per year should be set aside for i'm
provements out Of earnings before divi-
dends could be declared. The amount to
be paid the note trustee in the period
from April !, 1914, TO June %. 1915, is
5 s., 10000.
, As far as the note agreement is con-
cerned there Is nothinE TO preclude a
declaration Of a dividend on August
20. In the period from April l to August
: the company more than earned the
10000 installment. and for the purpose
! OF the dividend the earnings in August
, up to the time Of the dividend declara-
/ ton also may be reckoned. In the four
months from April / 10 August l the
company's surplus after charges was ap-
proximately S73s 900, with June partly es-
timated and July wholly so. This is
23S,O 600 in excess Of the amount required
for the payment on the note agreement
The rate Of dividend to be declared lies
| wholly within the discretion OF the di-
rectors. II they decide that in view OF
the present situation 1t will be wiser TO
conserve resources. naturally a dividend
! reduction would be ordered. II on the
other hand, they believe that near future
business will be large enough to warrant
the payment OF the regular dividend, per
cent will be declared.
Exchanges stIH Closed.
Fear Of European liquidation still keeps
| the New York and other stock eX-
| changes closed. The New York Ex-
change doors now have been shut for a
| longer period than in 1873. the only
other time Il ever suspended business
! since II was organized.
| Trading through the clearing house of
the exchange seems TO have fallen of
but this plan proved serviceable in en-
/ oh
a large number Of speculative accounts
The clearinghouse is not a legal mar
ket In which brokers can close out Gus
toners accounts without their consent
and a considerable number Of specula-
| tors long Of stocks refuse either to take
their losses or to put up more margin
because they know their brokers can
not sell them out. A speculatOr with
only few points of his margin left
at the close Of business can afford TO
take chances II It is the policy OF the
stock exchange not TO reopen until a high
er level Of prices seems assured.
Banks with large loans are trying to
reduce their loans by exacting high
rates for call money and refusing fixed
date loans on such security. Foreign
exchange was easier and the information
| al banking situation has improved.
Trading in securities for cash goes on in
fair volume.
Bond Sales Small.
Bond selling is at a minimum. Not
since the investment banking business
was in its infancy in this country have
the private banking houses done as lit
tie business as at present They have
adopted the policy Of not Offering Sc
curities-their statesmen being called in
from the road What business is being
done Is initiated by investors. This has
to be done in bonds that the houses al
ready own. for they are not trading
among themselves to fill orders
Several OF the houses report that they
received more inquiries from investors
last week than for a long time past But
these do not lead directly to business in |
more than n small percentage Of cases, |
because what investors are looking for
are exceptional bargains. and these
houses are not Offering. For that reason !
the amount OF bond business being done !
is practically nil.
In the present situation the bond |
houses are standing together solidly in |
maintaining prices, and the investment |
situation is in no danger OF becoming |
demoralized. Some slight concessions. |
Of q point or two. are made to buyers |
OF unlisted bonds which the houses |
hold, but these concessions are only from |
the regular Offering prices of early in |
the year. and would not correspond to a |
reduction from the last selling prices OF |
listed issues.
Products BETTER Than Gold.
Though there has been a demand that
this country export its gold to England, !
the cables have brought no news that |
England Is insisting on payment in gold |
for the securities sold in this market. |
Demand for such action, as far as the |
public is informed has sprung from this |
side rather than the other side Of the |
Atlantic.
On the other side, as far as is publicly |
known, England is content to allow the |
usual custom and accept payment OF |
American debts in American products. |
Such a disposition is all the more natural |
because England will soon be in more |
than the usual need or this country's |
products. because England has declared |
moratorium, in the course OF which |
payments may be suspended, and be- |
cause the Bank of England. with the |
behind it. is freely supplying credit. 1t |
accordingly may be expected that early |
this week the attention Of bankers will |
be concentrated on shipment Of the coun-
try's products to England rather than on
the shipment OF gold.
Instead of receipts Of 800 to 1000 cars
during August. before the outbreak of |
war in Europe, that market is receiving
only go to 800 cars a day, according to a
telegram to a local broker.
The export movement direct to the
Gulf has been halted This of course.
will result in a disappointing August
grain trafic for railroads in the South
west, and has allayed fears Of shortage
Of cars.
Farmers are holding wheat to a sur
prising extent, being generally confident
OF higher prices eventually and willing
to follow the advice OF dealers not to
market the cereal until the export out
look clears.
The number Of stockholders who will
participate in the Pennsylvania Railroad
dividend to oe paid on August 81 is
30, S5s. OF these, 1856, or 4sA per cent.
are women.
The number of Pcnnsylvanlans Is $685.
or A09 per cent; New York, 15,4H, or
1T.09 per cent; New England, 1859, or
lS.2s per cent: foreign, lisa or 1900 per
cent, and the stockholders classed as
scattering number lS7S, or H.E per