Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-10-24
FINANC1AL-LOCAL AND OTHERWISE.
BY I. A. FLEMING.

BYI A. FLEMING.
There can be no question but that
good stocks are being marketed every
day to furnish the needed financial
| sinews to continue the margtning OF
speculative trades on Wall street.
The public has entered the stock
market more generally than at any
time since 1901. when the friction be-
tween giants Of finance sent Northern
Pacific stock to $1,000 share. In the
interim between then and now there
have been months, years, IN fact' that
the stockholders have bewailed the
Indifference of the public to the par
gains offered on the bargain counter
of the worlds greatest mart-Wall
street.
Gradually the public became weaned
from speculation through the smash
ing losses following the 1901 rupture.
Gradually the public has returned.
slowly at first, and then as stocks kept
on skyToeketing and fu1 the b d,am prot,ts
grew apace they seemed to 1orges
every experience and Joined tho wild
and furious buying.
Other stock exchanges have sunereo.
every day Of high-grade investment
stocks in order to furnish margins 1or
speculation. Instances have come
under notice during the past week
where bank stock paying l6 per cent
per annum has been sold at a sacrfhce
of several dollars a share In order TO
furnish margin money Tor BALDWIN
Locomotive, Bethlehem Steel or some
like speculative proposition
With further mutations IN va1ues
do
any especial sense of security In spec
ulation, as the higher the stock the
greater the margin exacted.
One broker wants 500 share on the
more moderate margins elsewhere. but
this is an evidence that the brokers are
protecting themselves to the exclusion
of weakly margined transactions. This
prevents the calling Of margins every
time there is drop OF few points and
tends to steady the list.
Seeking Recompense.
Some Of the buyers Of stocks that have
figured in the sensational rises Of the
last few months are seeking help from
officials of the corporations In whose Sc
curities they have put their money.
petition has been sent to c. NJ Schwab
asking him to adopt the plan which has
been advanced in the columns OF the
financial press-the issuance of ten shares
of a $40 par value for each 800 share
of common stock.
They are now advancing the same
theory-the street gossips on the future
of Studebaker-only this time it Is to be
two snares for one and 6 per cent divi-
dends-probably If the stock advances
far enough it may reach the dignity OF
three for one and per cent dividends
Lacking in Real knowledge.
With each succeeding day the stories
Of wondrous profits have been given cir
culation as the result Of war orders given
to this and that company. Perhaps some
Of them are true, but they are not all
true. Two or three local war profits
rumors have faded. and were the new
orK market as narrow as Wash.nsIons
some of the sensational pronts tnere
might go glinmering.
as to what these profits are Is the
DANGER point in the whole situation.
Then, too, there are stocks In the
booming list upon which the paymene
of dividends is doubtful: stocks that
nave a real value, but OF corporations
that have not made a dollar out OF the
wars necessities. out nave
kept pace with some that have. Easy
money is unquestionably a great fac
curities: with actual value back or
them are readily absorbed by the con-
sentative investors. who are satisned
with moderate dividends and not In
ciIned to run after WHO STOCK mar
ket.
London and other foreign centers
have been sending back American Sc
curities in volume. many thirty days
ed by sellers. But there's demand for
everything worth while and for many
things that, perhaps, may not be-
Washington Securities.
Perhaps the local list has suffered
more or less from the speculative
fever. 1t would not be far from fact to
say that a number of stocks sold on
change had been disposed Of to OBJ
tain margins for Wall street
The stock exchange. itself needs q
larger membership; perhaps few more
stocks on it's list that might broaden
the trading.
1t also needs. as an inducement to
broadening its field of action. new
quarters. and this should be the frst
movement undertaken. The bylaws
The bond list could readily be en-
larged and some stocks added that
During the last week Graphophone
for the common, and as quickly drop
ped back to 110. The preferred Ia at
max.
Investment returns on the utilities
of Washington are decidedly more
promising than on many stocks that
are selling many points higher.
Graphophone common does not pay
a dividend; Washington Gas on the
selling price is paying SIT per cent;
Railway common is an 8 per cent In
vestment and there are others desir-
able in every way.
list are little lower than they were
last week. except Railway preferred,
which has shown a trif1e more strength.