Evening star., 1915-01-07
MINIMUM PRICES ARE
NOT TO HELP MARKETS
Their Purpose Is to Protect From
Bear Raids and Untoward
Happenings.
Local Bond List Shows Strength.
Railroad Earnings-Financial
Notes and Gossip.
BY I. A. FLEMING.

b i. "A. LIZ lNI.
There is Il need for the continue
maintenance of minimum prices Il
practically all the security marts or IN
world until such time as the emergehc
conditions now existing shall have bee1
eliminated. in the opinion of f1nancler
familiar with market conditions
Minimum figures are not intended a
p protection AGAINST loans made or
stocks before the outbreak of the pres
.nt war. nor as Il market sustainer
hut rather as Il protection against an!
untoward happening.
Loans made prior to July 80 on secur
fties should either have been satsfac
toriIy adjusted long before this or paid
off, and the fact that prices are arbl
trarily held at certain levels shoult
afford neither comfort nor satisfaction
10 those who have failed to better thei
security or to lessen their obligations
With minimum prices in existence
the operations of bears. who profit
by happenings of a character unfayora
Nle 10 market conditions. are practical
IS impossible; there are no induce
mcnts to make the most of bad news
and the handicap Of the bears is ef-
fectively maintained.
But for minimum prices and other
restrictions it would not have beer
possible for the various stock eX.
changes TO resume business. and the
measure of success that has attended
resumption is in itself warrant therefor
Local Bonds.
There was only a fair inquiry fol
bonds on the local market. but price:
were decidedly firm, showing that th'
supply pressing to sale is by no means
large Gas 5s moved up to 10S Il Po-
tomac Electric Consolidated IS brough
aaas and Metropolitan 5s 1041a Wash
.ngton Railway As were tirmer at Sli4-
Railroad Earnings.
One hundred and fifty-one railroads
reporting TO the interstate commerce
commission for the month of November
report gross earnings of s21',24o,ooo' as
compared with s24S,073,ooo for Novem'
ber of 1918. BY economies in operatins
service. maintenance, etc, they reduced
expenses by S23GO0.000. and reported me-
earnings of s62,24s.347, as compared
with S7O.S45.7oO in November, lslS.
For the fourth week OF pecemnel in
creased S26.635. Western Pacific IN
creased s3.6OO and Colorado Southern
S1e3.2S6. Monon earnings decreased
slS,3S4.
Financial Notes.
The federal reserve board has eStab-
Nshed new discount rates Tor the AT
I,pta and st. Louis regional panks
maturities up to thirty days, AZ pei
cent; sixty days paper, per cent
ninety days, 81. per cent. and over
ninety days, 6 per cent. Under THESE
rates the demand for rediscounts
should increase very materially. In all
probability other regional institutions
will be given the lower rates within
Il few days, and the money marke,
should be relieved as a result
Ashton G. Clapham, president of the
Commercial National Bank. returned
this morning from the Canal Zone,
after taking necessary steps to estab-
lish branch banks of the Commercial
at Balboa and Cristobal. 1t will be d
few weeks before the branches are in
full operation. Mr.. Clapham is enthu-
siastic over the prospects for business
in the zone.
The law requiring war tax stamps
on bills of lading for over cents
freight charges does not apply to ship.
ments by parcel post
pennsylvania fIdllTOau company s OF
der for steel rails, on which bids have
been requested and for which orders
will be placed Immediately, is foi
100000 tons of 100-pound section. Ar
order for 10000 tons additional will be
given later on.
Big Four's earnings for November
show an increase of s296,s60, accom-
pIished by economies that more than
offset a loss of s143.87a in freight reve.
nue. and s51.462 in passenger income.
The Baltimore and Ohio Railroad
Company has contracted for the pur-
chase of 1000 freight cars, 1000 box
cars and 1000 steel hopper cars, and
options have been taken on an addi-
tional 1000 box cars and 1000 steel
hopper cars. at the same time prices
have been asked on $4,000 tons of rail
The contracts made for 1000 freight
cars call for prompt delivery and it is
expected that work on the new equip
ment will be started Immediately.
Orders for equipment will involve ar
expenditure of between s1,500,000 ant
s2,000,000
Market Broadens Later.
The reactionary tendency of the
standard stocks checked the bidding
for specialties and the whole list be
came sluggish and lower in the after.
noon New Haven was especially
weak, falling to 53
Later the market broadened ITnioy