The Washington herald., 1914-06-19
foreign Buying
AID TO MARKET
New York Prices Up on
Good News from England
and France.
DIVIDENDS COME SLOW
Two Years May Elapse Before Re
gional Banks Will Be Able to
Pay Interest on Stock.

Further selling of stocks was checked
yesterday by the stronger tone Of the
foreign markets and another sharp ad-
vance in English consols on the easier
money situation abroad; and the greatly
improved situation and outlook of French
politics from the establishment of a vote
OF confidence in the new French cabi-
net.
These advices, together with the reiter-
alton of recent forecasts that the Inter
state Commerce Commission will hand
down its decision on the rate question
by Monday night or early next week,
and that IL will grant goodly portion
OF the per cent increase requested to
points west Of Pittsburgh and Buffalo to
the Mississippi River. caused a generally
better feeling TO prevail throughout the
financial district
The outlook, however, Is for a con-
tinued rather sluggish trading market,
pending the official announcement Of the
Interstate Commerce Commission rate
decision, in view of the general uncer-
\ tainty that now prevails over what II
will be- and the absolute necessity that
most of the Eastern railroads be per-
mitted to advance freight rates on the
average of at least 21-2 to per cent, il
there Is to be any revival of bullish ac-
tivity and higher prices for stocks.
Steel closed 81 SIS, Reading 1si 1-2. Union
1S is, and Copper Il
Local stock Market.
Trading in the Washington Stock Ex-
change yesterday was confined to Mer-
genthaler and Capital Traction stock,
there being no sales Of bonds.
Odd lots of Mergenthaler to the extent
OF thirty-four shares brought 214. while
twenty-nine shares of Traction brought
99
For Railway common s6 was bid, 30
asked: for the preferred. 81 1-2 bid. So 1-2
asked; for Washington<Gas 20 1-2 bid, IS
asked
Reserve Bank Dividends.
Provision is made for the payment of
dividends at the rate of per cent per
annum upon the stock of the Federal
reserve banks, and these dividends are
cumulative. This rate of interest is ac-
ceptable, especially to the banks in the
Middle and Eastern States.
In the West and South the banks can
and usually do use their funds at a
higher rate of interest than per cent.
The payment of dividends current and
accrued on the stock of the Federal Re-
serve Banks depends entirely upon the
ability Of each individual bank to earn
the dividend on its stock.
OF the twelve Federal Reserve
Banks some of them may earn divi-
dends constantly and others, perhaps
with less favorable conditions, may not
earn such dividends either in full or In
part.
The great banks of the large cities |
OF this country have established sys-
TENS which are worldwide for the trans |
action of banking in all of its features. |
Sand it will take the Federal Reserve 4
Banks years to establish themselves in |
the same position. Taking all these |
difficulties into consideration, and the |
great expense of conducting the Federal |
Reserve Banks, the member banks can |
hardly look for dividends on their Fed |
eral Reserve Banks stock. certainly for |
the first year or two of the existence of |
the new Federal reserve organization.
1t is announced that the New York |
Central Railroad has dropped during the |
last month 400 men from its clerical and |
engineering department, the larger num-
Der of whom were released owing to dull |
business conditions.
Vice President Hardin states that there |
are 5000 less men in the clerical and en-
gineering departments now than at the |
same time last year; that there has been |
no wholesale laying of of the men, how
ever. but pairing down here and there |
wherever the officials thought saving |
could be made.
1.639.117 tons of coal as compared with
e22. .533 tons in April, 1913, an increase OF
1854 tons. The largest gain was in
west-bound tonnage, 50 per cent of the
total going in that direction against An
per cent last year
Chesapeake and Ohio's ten months coal
tonnage aggregated Il. 5.H5,S24. compared
with L, ,9s7, SIS, a substantial gain of 2,227.-
5S4 tons In the same period coke
tonnage increased from 256, ,021 to 32S, $50
tons.
According to statistics issued by the
Pennsylvania Railroad, that system on
January ! last, with 1854 steel passenger
cars in service and 37s more under con-
struction. owned more than one-third of
all the steel passenger cars in use in the
United States, not including sleeping and
parlor cars. The railroads statement
says: ITO replace with steel ali wooden
passenger cars now in use in the United
States will cost about 1851, ,00o, ,000.''
A strict Interpretation of the Federal
reserve act would require members of the
Washington Stock Exchange who are Of
ficers in banks belonging to the reserve
system to withdraw from the exchange.
This has been met by the suggestion
that members could retain their positions
and deal in their individual capacities /
However, under the rules of the exchange
commissions would have to be charged,
SO it would seem that unless the act is
formally in force the membership Of the
exchange will consist only of brokers and
bank officials not members of the sys-
TEN.
The enforcement of the act would lead
to the retirement from the exchange of
Messrs Glover and Father, of the
Riggs: MIR. Johnson. of the Metropolitan,
and Mr.. Morment, of the National Bank
of Washington.
The Baltimore Public Service Commits
sion yesterday refused permission TO
United Railroad and Electric Company to
issue 81. .0oo. 900 two-year 8 per cent trust
notes. convertible into common stock a,
g 1-3 or a total of S1.5oo.ooo par value.
The decision of the commission in this
matter is expected 20 be far reaching
and to affect every corporation in the
State. the public service corporationsI
directly, and the others indirectly. The
company is now considering other means
OF financing.
william E. Lewis has been made man.
ager OF Chandler & Co.'S Washington
ONCE. which has been opened at 1871 =
street. The company maintains Offices