The Washington herald., 1914-04-23
HOSTILITIES FAIL
TO STIR MARKET
New York Prices Maintain
Firm Tone Canadian
Pacific Down.
WAR AND THE TREASURY
No Immediate Necessity for Legisla-
ton to Raise Funds-lncome
Tax Dodgers.

Regardless of Mexican hostilties the
New York Stock Market yesterday was
supported strongly and there were gains
in leading issues The only important
exception was Canadian Pacific, which.
in London selling. touched 194S-S but
closed 1S6 3-S, loss of over three points
Steel. Copper Reading, and Can all
made fractional advances.
The market has received very good
support during the exciting develop
ments of the last two days in the Mexi-
can situation and has shown remark
ably good undertone. There had been
so much lidufdation the last week that
there has so far been an absence Of
much further outside liquidation except
about 5000 shares for London and other
foreign accounts.
Local stock Market.
Trading on the Washington Stock EK-
change yesterday was more active than
usual, but with the exception Of one
1.0O0 Railway T. which sold at 81 Is, was
confined to the stock list
Sixty-three shares Of Capital Traction
brought 100 7-Sa1O1, thirty shares Of Rail
way preferred s..
Mergenthaler was in good demand,
th!rty-eight shares selling 15a215 IL. One
share of LanstOn sold s.
Ten shares of Farmers and Mechanics
National Bank sold go.
Mexican War Financing.
The Boer war cost England s.. 600 O00. 900
and lasted two years. If United States
Mexican hostilities continue that length
Of time the cost will be fully as great.
With its enormous resources OF the
country the war will be financed without
difficulty As the Treasury Department
can spend safely down to S3O,OOo,O0O' there
Is available at once $50.O00,000. In addi-
ton, the government now has authority
to issue as needed 800, 100000 in per
cent one year notes
Immediate legislation therefore is not
needed. Stamp taxes are not as burden
some as they are annoying, and there
was constant complaint on that score
during the Spanish war. Most OF the
banks for instance, finally printed the
cent internal revenue stamp on each
check, thereby saving customers the
nuisance of affixing stamp.
Now that the income tax is on the
statute books, one of the best methods
Of financing the war would be to lower
the exemption by at least H,OO. This
would bring in all the money necessary
and at the same time would give the
citizen of moderate means, who fails to
go to fhe front a chance to show his
ever may conclude that the idle rich
should assume the burden and increase
the present percentage on incomes de-
rived from 5000 and over. The income
tax is class legislation anyway. and there
should not be an exemption in excess Of
800 IL that much.
Income Tax Dodgers.
BY direction of Secretary McAdoo, Com
missioner Osborn, OF the Internal Reve-
nue. Bureau, is formulating plans for
checking up income tax returns in order
to detect evasions of the law. The first
step in this direction was made yester-
day with the adoption of a plan to secure
information relative to the stock hold
Ings of all citizens and residents of the
United States and the amount OF income
derived therefrom by each stockholder.
The commissioner is mailing to each
corporation, joint stock company or asso-
citation, and insurance company in the
United States, blank forms prepared for
the purpose of securing complete data
relative to the total amount OF common
and preferred stock of each corporation
outstanding December 81, 1913, the par
value per share the dates and rates Of
dividend payments made during the cal
endar year 1918, the names and addresses
of all holders of such common and pre-
ferred stock outstanding December 81,
shareholder on the date named, and the
aggregate amount of dividends paid or
credited to each shareholder during the
period from March / to December 81,
1873
Each company also is requested to fur
nish a list of all officers and employees
to whom a salary or compensation m any
form whatever was paid to an amount
of $500 exemption for 1919 a short year
fpv
] to December 81. 1873
These reports when received and tabu-
lated will be of great assistance in check
ing up returns. The law provides heavy
penalties for false or fraudulent returns.
Southern Railroads Sold.
Sale of the Atlanta Birmingham and
Atlantic and the Georgia Terminal Com
pany at Atlanta, and of the Alabama
Terminal Company at birmingham, will
mark the closing chapter of the pro-
tracted receivership Of these properties
operated under the guidance Of the
court since January, 1909. While some
eleventh-hour delay may turn up, as is al
ways possible concerning such procedure,
It is expected that the plans of the pro-
tective committees. will go through. The
court has placed no upset price.
The reorganization plan, while drastic
from the point Of view of security hold
ers, was made necessary by the cOndi-
tions and by the desire to have the new
company, for which the name Georgia,
Alabama and Western is suggested by
the committee, start with its finances on
a sound basis. The fixed charges of the
new company will be but $19,90 per
annum.
The entire ss0OO0.OOO twenty-year per
cent notes Of six operating companies of
-Bells system have all been sold by
bankers who purchased the issue. The
Es.5oo.0OO Cleveland Telephone Company
notes have not as yet been formally ap-I
proved by Ohio commission, which has
jurisdiction in the matter, but with This
technical exception this financing has
been finally cleared up.
It wiz be nearly two years at least,
according to present plans Of President
Vail before American Telephone and It's
subsidiaries again are obliged to enter
the money markets
o. b. Zantziager yesterday was elected
4 director of the Bank of Commerce and
Savings. Mr.. Zantzinger was chairman
Of the executive committee Of the old
Merchants and Mechanics.
DR. George TuiS Vaughan is the first
Of Washington fnanciers and probably
the last to sail for the front DR..
Vaughan is a director Of the Commercial
National.
Largest Morning Circulation.
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