The Washington herald., 1914-05-06
STOCK MARKET
PRICES ARE FIRM
Unfavorable War News Does
Not Materially Affect New
York Quotations.
WILLARD ON SITUATION
B. & o. President Hopeful of Ad-
vance -Olney Declinahon
- Regretted.
WILLARD ON SITUATION
By w. STEALEY.

4 NCSlCAIG1-
BY w. STEALEY.
REGARDLESS of unfavorable war news
the New York stock market yesterday
was firm.
Prices closed little under Monday s
figure. The principal loss was in Northern
Pacific. which dropped to 100 SIS, but
closed a point higher.
Steel was off a fraction. closing 50 5-S.
Copper. Reading, and Union held prac-
tically unchanged prices
The dullness of the foreign markets
together with the general desire to await
further Developments on the Mexican
situation and the declinatiOn by Mr..
Olney of President Wilson's offer to
make him chairman of the Federal Re-
serve Board, dulIed the trading in the
market today.
Most of the trading element were more
over inclined to look for some reaction
in prices before taking hold Of the bull
side again. and the trade reports on the
prevailing conditions in the copper mar
kets as well as the steel and iron industry
continue unfavorable as did also the
reports from the leading yarn and cloth
manufacturing centers.
The reaction in prices. however. did not
exceed more than 1-2 to l point for any
Of the active stocks, except the tenn
porary slump of points in Northern
Pacific That was caused by a bear
rumor that a very large new stock or
bond issue was impending, but it later
officially was denied.
Local stock Market.
Trading on the Washington Stock Ex-
change yesterday continued in fair
volume in both bond and stock depart
ments.
Washington Gas IS sold $5pOO. lO6 LA
I66 3-S: Capital Traction rs $3.50, at lO6 81
and Chesapeake and Potomac Telephone
SIS. Sl.OOo. at 1O4 IA.
Railway common was off a point lOl
shares bringing S5l Forty-one shares
of preferred brought S4a4 IA.
Forty-foUr shares of Washington Gas
brought ~ l-2a79 81.
Cwenty shares Of Mergenthalcr sold at
2l5.
West Fenn Three-ycnr Notes.
Lewis Johnson K Co, as the Washing
ton correspondents of A. b. Leach & Co,
report the sale of 81 $1,000 West Penn
Traction Company three-year per cent
notes. public offering of the above hav-
ing been made Yesterday.
This West Penn Traction Company has
become entirely divorced from the in
terest of the Kuhns, of Pittsburgh II
is one of the few properties which they
t0ilt up on a rock foundation and brought
to its present state of efficiency and
great magnitude.
The West Penn Traction Company
operates in what is probably the most
important industrial district in the United
States. 1t is one OF the most densely
populated sections in this country. con-
tanning 40 people to the square mile.
The West Penn Traction Company is
broadly diversified in its operation Of
street and domestic lighting. business
service. coal mines. steel mills. and ur-
ban and iEterurban transportation. radia-
ting from Pittsburgh in all directions in
the four valleys through which the Allie
gheny, MOnongahela, Ohio. and YOughiO-
gheny rivers flow.
The sale of these notes will furnish the
company with a large amount of cash
for the further extension of its business,
resulting in largely increased earnings.
The company enjoys remarkable record
of business growth since its inception
many years ago. and for the year 1913
had a gross income Of nearly $4.500.o0o.
The rapid absorption of the greater por-
ton of this issue emphasizes the dis
position on the part Of investors and in
stitutons to place their money in we'll
secured public utility bonds. The above
notes sell at 90 and interest at which
price the annual return is in excess of
6 IA per cent.
Railroad Earnings Better.
March earnings of the trunk lines so
far reported are encouraging. chiefly by
contrast with the sorry exhibits of the
months of January and February. The
Pennsylvania and New York Central
! systems did not do as well. particularly
as to net earnings. as did Baltimore q
Ohio, but the latter was more seriously
affected as a system by the Ohio dis
aster in March of 1913.
Thus the Baltimore & Ohio reported
q small gain in gross and an increase of
SS5l,OO0. or more than 20 per cent. in net;
whereas neither of the larger systems
made any increase in gross business
over a year ago, while only the Penn
sylvania reports any gain in net.
But Pennsylvania March returns are
so much better than any since the first
of the year to hold out some hope
for the near future.
willard on Railroad Rates.
Daniel Willard, president of the Balti-
more & Ohio and chairman of the COM
mittee of Eastern railroad presidents in
, charge of the advanced rate case, eX-
pressed his satisfaction yesterday with
the progress of the movements so far.
He pointed out that Mr.. Brandeis, spe-
cial counsel to the commission, agreed
that it was to the best interests OF the
communities served that the Eastern rail-
roads should have greater net revenue,
though disagreeing as &c the means to
obtain II, and added that it was reason
able to believe that the commission would
give serious consideration to the argu-
Inent of its counsel in favor of greater
revenues.
Mr.. Willard said also that he agreed
with Mr.. Brandeis that where any in
equality of rates existed or where serv-
ices were performed without proper
compensation such things should, IL pos
sible, be corrected. But such changes
would require the active cooperation
of the commission and even with II
might be considerably delayed by the op-
position of State authorities and shippers.
He expressed the hope that the COM
mission would allow the per cent ad-
vance schedules to go into effect. and
then proceed at once with such inquiries
as were necessary to develop the other
matters referred to.
Newport News Improvement.
Chesapeake and Ohio set aside ST.
100000 out of the earnings of the next
five years for improvement of the pro-
perty The amount, especially In the last
three years. is a heavy charge, as against
its $50 900 capital stock.
There is an excellent probability that
the development of the road will take
care of this expenditure. Part of the