Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-10-03
FINANCIAL-LOCAL AND OTHERWISE.
BY I. A. FLEMING.

BY I. A. FLEMING.
President Hamilton of the Capital
| Traction Company took step In the
right direction with the LIST of october,
when he sent circular letters to the
shareholders in that corporation,
giving them the cheering Information
that there had been ample earnings
for the third quarter Of the year to
meet dividend requirements; that the
maintenance charges had been kept up
and that a surplus had also been
earned.
For months speculation had been rife
regarding the ability Of the street
railroads to maintain their dividends
and keep up maintenance charges,
under the competition of the family
automobile, thousands of which have
been added to the city supply during
the summer, and the lessened traffic
due to jitney competition and the cool
weather during the summer months.
Capital Traction shares, one time
considered the gilt-edge investment OF
Washington, selling better than $140
share at one time. have been on the
decline for some time past. during the
Closing days of last month reaching
a sale price of ss5 a share. Mr.. Ham
ilton's letter has given new nope TO
the owners of Capital Traction snares
and the chances are that the pressure
to sell will not be noticeable and
that the satisfactory information will
lead to the further hope that the year
will close with even better showing
than in 1914.
Capital Traction has not been sup
ported during the decline to the low
t..
OmciaIs of public utility corporations
owe 1t to their shareholders to let IN
the light more or less frequently, 70
let their shareholders know something
etc. at least oftener than once year.
This has been advocated in this column
more than once. The shareholder IN
corporation has right to look at tne
books of a corporatin at any time, pue
a look at the books to any one not an
expert Is poor satisfaction:
A f1fty-word circular tri-monthly Is
better than nothing.
War Stocks-DangerI
And still they climb-the war stocks.
Warnings have been numerous, but the
speculative mania continues, with the
public wildly risking much in the re-
turn to the old reckless game of epecu-
lation.
Wall streets more reputable houses
are urging their clients to go slow. to
take their profits, to stop and give the
list rest, while they are worrying
over the possibilities of a bursting of
the bubble. Consultations, stories of
enormous profits. the spending of $780,
600, 900 more for the benefit Of the
allies in this country, the great profits
made and the fact that after every lit
tie decline a new high point is estab-
lished, has made SPECTATORS reckless
in the extreme.
They trade in stocks worth hundreds
of dollars a share as they used to in
stocks on which a margin Of $40 a
share was acceptable. Brokers and COM
mission houses demand large margins,
and get them; they plead with this and
that customer to cash in his huge paper
profits while yet they are available, and
generally receive orders for further
buying.
Talk of the certainty of the war end
ing some day is met with the state
ment that the end is not in sight.
Brokers are exhausted, clerks are SO
far behind on their books that special
holiday is talked of to enable them to
get their records up to date, and the
end is not yet.
predicted, there will be a rush to take
the enormous profits in sight. selling
will be as furious as the buying has
been, and the slump will call for
reckoning that will not be pleasant TO
the man who overstays his market.
1t has always been SO, 1t will be so
again.
From January 1 to October 1 the
sales on the New York Exchange were
126, 503,695 shares, as compared with
45,51S,023 for the same period OF 1914.
Big Disbursements.
The disbursements for October of the
k-1
corporations are expected to total
about s157,o0.oO0. Probably $4,000
900 all told will be paid out, including
disbursements by state banks and
minor interpretations.
The money will go right back to the
banks again, at least a large percent
age of it, as the actual investment de-
mand for securities is at low ebb.
Directors Should Direct.
Bank directors when they take the
oath of office are assuming an obliga-
ton to every depositor of the institu-
ton; giving pledge that during that
year they stand pledged to guard close
ly the affairs of the bank.
And yet, large minority-not a ma
jority of the bank directors-of the
city fail entirely in their duties, in
that they are not faithful in their at
tendance; that they are in the dark re-
garding loans and collateral-frequent-
ly in that they do not give them adj
vice to the officials of the bank, infor-
nation that might prevent undesirable
loans and subsequent difficulty in col
lections II not actual losses.
1t Is clearly the duty of the director
to be of service to his bank and It's
depositors-not that he should inter-
fere with the officers of his institution
IN the conduct of the business, unless
he deems 1t his duty to advise against
this or that action, with his reasons
therefor, which would probably be
sufficient to influence any officer.
The provisions of the Clayton law
have been variously commented upon.
One thing that is certain is that 1t
commanders the services Of any officer
or director directly to one bank, no
man can hold positions on two or more
boards or hold employment in two or
more banks.
Bank presidents in Washington have
no sinecure. They must be wide awake.
active. up on all points, have a close and
intimate knowledge Of credits. invest
ments and full and speaking acquaint-
ance with the laws Of the nation and
OF the District Of Columbia in particular,
that they may protect themselves. They
need their directors aid.
Directors who fail in their duty to at
tend meetings have no right to be crit
zeal when a cog slips. so long as they
have taken no effort to keep the machine
moving smoothly