The Washington herald., 1914-03-26
PAN HANDLE OFF
Thirteen POINTS
Poor Earnings Force Pennsyl-
vania S Auxiliary to Cut
Dividend Rate.
THE SAME OLD STORY
The Interstate Commerce Commission
THE SAME OLD STORY
The Interstate Commerce Commission
Seems to Contro! Future OF
Country's Systems.
By w. sTEALES.

OSE.
The stock opened at SO, went 10 %. and
closed at 20 l., net loss of I IL points
The decline was due to inc dividend
CIT Of from 5 to per cent. 1t Is tha
Same old story told by daily railroad
reports of decreased earnings throughout
every section OF the country. other tnan
the particularly favored Southern ATTAIN
tic territory.
IN sympathy witt: the drop IN p, C.'
c. & st. l., the entire iistNwa affected.
Pennsylvania controls Pan Fanoie, so
the former stock lost / - points The
surprtse is that there was no, a further
decline. Pennsylvania's surplus fcr the
year ending December 81 was SiO.or. Tne
reduction Of the Pan Handle 0Viderd
means to Pennsylvania loss OF abou'
n.OocOOo II earnings this year are no
better than last. a deficit obviously races
the PENNSYLVANIA in the current year.
wi,bout an increase in railroad rates il
is difficult TO figure out how fenhsEl-
vania can maintain its dividend.
All important stocks went off sympa-
theticallv. Steel closed 81, SIS of; Read
ing. 165. 81 off, and Union. 109. IL on.
President Rea. of the Pennsylvania
last night issued the following statement
in Philadelphia-: ~;
The directors of the Pittsburgh, I'm
cinnati. Chicago and st. LOUIS Railway
Company at their meeting TO-DAY con-
sidered and approved the annual report
for 1873 the results of which nave al
ready appeared in the annual report OF
the PENNSYLVANIA Railroad Company.
This report showed an increase OF A-
GOOOO0 in operating and maintenance eX-
Denses, which includes the extraordinary
outlaws for replacemcnts and repairing
tracks. bridges and other facilities de-
stroyed or damaged by the serious flood
Of March. 1918, so that, after paying ITS
fixed charges and appropriations to sink
ing and other reserved funds, there re-
mained only s63n.OS4 as applicable for
dividends.
THE company. however. paid its regu-
lar per cent dividends on the preferred
and common stocks, aggregating S.2322,- =
SO. but in order TO meet the same had TO
utilize in large part its surplus income
from previous years
In tiew of the decline in the gross and
net revenues of the company in the latter
part of 1913 and so far in the present
year. and as there are still large eNpendi-
lures to be made in the current year for
the flood damage of 1918. the directors
deemed il prudent to reduce the dividend,
and therefore declared l per cent on the
preferred and "a of per cent on the
common stock for this first Quarter of
the fiscal year. or at the rate of per
cent per annum for the preferred and 3
per cent for the common stock. as against
per cent declared on each class of
stock in recent years.
Local stock Market.
Trading in Railway did not reach the
extent of Tuesday on the Washington
Stock Exchange yesterday.
Twenty-Five shares of the common sold
at IS -. Ninety-three shares of the pre-
ferred sold S7aSI IA At close 50 IL was
asked for common. s. preferred. They
We're held at 81 and 81 IA. respectively.
Fifty shares If Capital Traction sold
1O7 l-2aIOa
Five shares of Mergenthaler brought
@IJ
Bond sales were light.
A sl.OCO Railway 4 brought 50. and one
$1,000 Potomac Electric Consolidated )
100 IA
Decision on Rates.
The revival of rumors of the announce
ment of an early decision in the freight
rate case is interesting merely as a re-
Election of another change of sentiment
in Wall street on this score. Nobody
with any knowledge of the progress OF
the case pays any serious attention TO
them. The absurdity of the latest vague
reports of a decision in a day or so is
apparent when it is realized that the
railroads have not yet presented their
evidence. Before the railroads side of
the case is in the presidents of the prin-
cipal roads will take the stand and be
cross-eXamined by counsel for the COM
mission. This is the program as origi-
nally planned. In addition. the commit
tee in charge OF the railroad side of the
question is now preparing an answer 10
certain charges tina; have been made
recently on behalf Of the opposition.
Federal Reserve Gossip.
Contrary 10 reports that have recently
bceu Pl5ced in circulation the feeling
prevalent among bs mixers in this city is
that no haste with reference TO the or
ganization of a Federal reserve bank
here need be employed. The money
situation is SO comfortable now and to
all present appearance IS likely to con-
t.Hrc to be so easy in the future said
4 banker yesterday that there seems
to oe no reason for urging the estab-
lishmcnt of a reserve bank until all ar
-angemsnts have been made satisfac-
:crily. | do not believe il Kill be well
70 hasten matters unduly. It is far more
important that all shall be in good work
ing order before any definite step Is
taken"
= somewhat different opinion is, how
ever. expressed by Sersons representing
a na.;k which is a large dealer in bonds
aud stocks. Il IS understood to be the
view Of those IN charge OF this bank that
while there is 70 reason foT anxiety IN
the matter. the sooner the bank can be
conveniently orsa-iZcd :ke better ror all
concerned. In the opinion OF this instItU-
ton the establishment OF the reserve
hanh in time TO permit of a resort to n
for crop moving requirements would Re
desirable. The organization OF the bank
would he preferred to a repetition of the
methods employed IN relieving the situa-
tian last sumner when the Treasury ad-
vanced money on the strength of COM
r::ercial paper. and placed il with those
hanks that appeared 20 need II to furnish
actual rid in moving the crops.
L. =. Bond Demand Light,
There has been a scant demand fo-
United States bonds since the Federal
reserve bill became law last December
One thing which affects the bond MAJ
ket ia the feeling of uncertainty Among
the banks as 10 whai Treasury oft1c;als
will do with the sG1.c99. 90 public deposits
that the banks now h&!d after the Fed
cral reserve system has b"cn crranjxed.
While the feeling ~ that these public
deposits VIII be f:.aIiy EaE.io,I nye, :
the Federal reserve DIIIEs, Il is recog-