Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1914-03-04
Passing Impressions Of Finance
By Louis Guenther
Editor of the Financial World

feel any hurt. But that was hoping
against hope and the disillusionment
has come this week when protective
committees were formed for the hold
ers of the different securities which,
while 1t is not stated openly, is ac-
cepted by knowing people as a sure
portend of a receivership as the final
solution in untangling the house Of
cards which the rollicking Reid and
the more sedate Moore erected upon
the money giuileless investors turned
over to them. The Rock Island needs
about $25,000,000 and the doctors
who have undertaken to help it out
of Its bad situation can only secure
this money by assessing the stockhold-
ers.
To those who know how faithfully
and patiently President Howard Ell
liott, of the New Haven, has labored
to meet the wishes of Attorney Gem
eral McReynolds In disposing Of such
properties as 1t holds, the news is re-
ceived with regret that a breach has
arisen between them. The reported
| differences is stated to be over the
period of time the New Haven should
have to sell these properties. Mr.. Ell
lott contends they cannot be sold
without sacrifice under less than five
from two to three years as plenty of
time. One fact is certain that the in
terest of the stockholders ought not
be needlessly sacrificed, for they at
least are innocent or any intent to
violate the Sherman law.
Dealers in municipal bonds are vir-
tually cleaned out of good municipal
bonds. The popularity of these securi-
ties spring from the new income tax
law There is no i'll wind but what
blows good to someone. This Is empha-
sized here. Municipal bonds are ex-
empt from the tax. They need not
even be scheduled and many rich men
as we'll as rich estates have purchased
municipals to reduce their tax to the
Government under the new statute.
With the passing of the law a large
and instantaneous demand for these
obligations set in. Where bonds could
be bought but six months ago to yield
nearly five per cent the prices have
gradually risen until the better grade
of municipals now yield an average
less than As per cent There are no
signs of much slackening in the sale
/ of municipals.
| No recovery has occurred in the
Standard Oil shares from their recent
slump. Stocks like Standard Oil Of
California, Atlantic Refining, Prairie
Oil & Gas, South Penn. Oil, Standard
Oil of New York and others have
, failed to regain any part of the shrink
age in the high prices they reached
in the exciting rise of January which
caught a great many likely margin
traders in these shares. But there is
la firmer undertone to the market and
the shares that are coming on the
market seem to be passing into strong
, hands.
By acquiring nearly all the public
utility rights in the Mississippi VAL
ley between La Crosse, Wis. and st.
Paul, Minn., the American Public
Service Corporation has secured for
| itself an outlet for the immense capac-
/ ity of the Mississippi Valley between
these two cities. territory which is
exceedingly rich, prosperous and
growing. To swing the deal required
an investment approximately OF over
sS,000,000 and they will add mate
| rally to the values in back of the
company's securities. Though but
few years old the American Public
Service Corporation has forged to the
front rapidly among the enterprising
public utility holding companies.
On April l, the United Light & Rail-
ways Co. will pay dividend of one
per cent. in common stock TO common
stockholders in addition to the one per
cent. cash. By adopting the practice
of paying a stock dividend the COM
pany, which is a very enterprising one
, is following the practice established
some years ago by the American Light
& Traction Co. which has distributed
such stock dividends regularly.