The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1914-08-21
CALL LOANS TO
CONTINUESTATUS
Markets Not to Open Until
the Situation Shows Pro-
nounced Improvement.
ROAD DEFERS DIVIDEND
Chesapeake and Ohio Directors Forced
to Conserve Resources-Lever
Cotton Act to Help Trade.
ROAD DEFERS DIVIDEND

banks with a view TO building up their
reserves, and II Is q matter OF uncer-
tainty Just how much selling pressure
might develop from foreign holders.
There will be doubtless an interchange
Of information between bankers in this
country and London Stock Exchange Of
ficials with a view to determining as far
as might be practicable the probable eX-
| tent Of this foreign selling. Under ex-
listing conditions selling from Germany
would appear to be cut off owing TO the
difficulty Of communication as a result
of the war.
The call for an early meeting Of for
eign exchange dealers issued in New
| York yesterday was with a view to con-
certed action. II possible. by bankers
handling commercial credits on a basis
OF sentiment, in uniformity with London
bankers. The question at issue affects
moneys deposited with New York banks
on account of matured obligations OF New
York merchants in London. The matter
is so complicated as to probably pre-
clude an early arrangemnt.
One Of the many new factors which
will have TO be reckoned with upon the
! resumption OF stock exchange business
is that a number OF companies have
closed their books for dividends during
the suspension OF trading. Brokers are
following their customary practice Of re-
ducing the limits OF all open orders,
either to buy or sell. but the amount OF
the dividend when the stock In question
sell ex-dividend except in cases where
definite instructions to the contrary have
been given. Stocks scheduled to sell
ex-dtvfdend IN the next two weeks in
clude: Pressed Steel Car common, "a
per cent: Southern Pipe Line, s.: Stude-
baker preferred. / 81: May Department
Stores common. u: National Lead pre-
ferred l 80: Reading first preferred l.;
United Cigar Manufacturers preferred,
/ "a; American Smelling and Refining
common l: Delaware and Hudson ? IA:
General Electric Company, 2; Norfolk and
Western common, 1-2 per cent; STAN
dard OIL % New Jersey. s.; Canadian
Pacific common 1-2 and preferred 2
per cent
c. q o. Defers Dividend.
The Chesapeake and Ohio Railroad d.
rectors at their meeting yesterday voted
to defer action OF the regular dividend
This does not mean the permanent pass
ing OF the stock from a dividend basis
Payments may be resumed at the No
vember meeting though that depends on
the business OF the road
The stock dropped to III the day the
market closed.
On August ! by the payment Of 500, 900
to the note trustee, the road satisfied the
current obligations of the note sale
agreement. and the question of a divi-
dend payment rests entirely with the
board OF directors. It is thought that
majority will decide that the present is
time for conserving resources.
Chesapeake and Ohio's earnings thus
far in the current fiscal year have been
very satisfactory. The gain over last
year up to the middle OF August was
$4,000 Maintenance of equipment out
lay is heavier than last year. and interest
charges are averaging $4,000 more a
month.
Officials OF the company expect earn
ings to benefit from the anticipated big
export demand for coal. At present
Chesapeake and Ohio has 10000 tons OF
coal at Newport News. but there are
steamers in sight TO load all of II. West
bound coal traffic has been very heavy.
At Newport News the company has
warehouse facilities for 10000 bushels
Of grain, and officials believe that the
company will get this fall a satisfactory
grain traffic bound to tidewater from
Middle Western distributing points.
Lever Law to Help.
The Lever cotton law fortunately
comes at time when the cotton ex-
changes are closed. The transition from
the old to the new regime can be eff
fected with a minimum Of friction.
One factor in this transition will be the
plan now being worked QUE by the
authorities of the New York Cotton Ex-
change to transfer all outstanding con-
tracts for the purchase or sale OF cotton
for future delivery to December. The
new law will become operative next
February. and, automatically. trading
in old-style contracts must cease then.
1t so happens that owing to the outbreak
OF war and suspension OF business on the
New York Cotton Exchange all commit
ments not yet settled will be concen-
trated in one month, and a month which
comes prior TO the operations OF the new
law governing futures. Under these cir
cumstances much Is being done now to-
ward adjusting the trade toward the new
order Of things, and that much less will
remain to be done when the act becomes
operative.
OF the probable effect of the Lever
law Of the futures market there is as
much division Of opinion almost as there
are individuals in the trade. But the
idea that prevails most generally is that
II will be entirely beneficial on the mar
ket. One Of the first likely effects will
be TO enhance the valus Of cotton con-
tracts. This already was anticipated by
the local exchange when. before il sus-
pended the market Tor March contracts
which would be under the operations of
the new law at time OF maturity. were
quoted at a premium over january con-
tracts, the next preceding important
maturity. That premium, while It va
ried. represented in n general way the
trades idea that new contracts would be
worth more than old. All positions
should be relatively higher under the
new Law. It is held, than they would have
been under the old methods Of trading.
One of the most important effects of
the act will be to stabilize the cotton
markets Of the entire country. The
terms middling, good midiling. and mid
ding fair will mean the same in Texas
as they do in New York, IN New Or
leans as they do in Augusta There will
not be a pJzzling multiplicity of stand
ards as at present
Passenger Rates Higher.
Travellers on railroads at some future
period are to pay more for transpor-
tation whether 1t is for pleasure or bus
mess. 1t all depends upon the result of
the work now being done by passenger
executives to determine whether It will
be advantageous TO make various inc
creases and II the greater revenue that
would come to the carriers would be
60 4,,akifv 81