Evening star., 1915-02-03
DISTRIBUTION Of STOCK
OF STEEL COMPANY
Ninety Per Cent Of the Preferred
Shares Are Held t.
Investors.
Foreign Holdings of Common Large.
Local Securities Quiet.
Financial Matters.
BY I. A. FLEMING.

lust at this time when United States
Steel Corporation shares are attract
ing considerable attention. following
tho poorest quarterly earnings in the
history OF the great corporation and
the dipping into the 1'Irplus of the
Years TO pay the dividend on the
itr,' erred shares. the position of the
stock of the company seems sufficient
~ interesting TO he the subject of COM
ment.
The action of the preferred stock.
Iow selling above par. would seem to
indicate that the investing world has
no especial fear as to the preferred
dividend not being paid right along
without interruption and probably
without further help from the surplus.
The policy of the corporation of pay
Sg for thousands and hundreds OF
thousands of dollars worth Of better
practically eliminated all water from
the capitalization. For this reason the
suit of the government under the Sher-
man law to dissolve the corporation has
not excited the holders of the preferred
stock. the theory being advanced that
the corporation could readily liquidate
at a price to retire its bonds and pay
oft the preferred shareholders.
For this reason Steel preferred has
heeu very highly thought of, and there
90 per cent is held by investors is
within the probabilities.
The common stock is held about
equally between investors on one side
and bankers and brokers on the other.
the latter representing very largely
the speculative interest in the stock.
The total common capitalization is
35uS, ,302. 500. and New York bankers
and brokers are accredited with hold
ing, for themselves and other owners.
NFH . la@ cot
Investors in that financial center own
about 20 per cent, New York Is also
said TO own about 40 per cent OF the
preferred shares.
4 syndicate in Holland is the owner
rf $50 0Oo shares of the common stock.
England is the largest foreign holder
uf Steel shares, with 753.232 shares of
common and 11i.l4I shares OF the pre-
ferred held there.
No information is at hand as to the
character of the English holdings. but
the theory is advanced that it is large
ly in the hands of bankers and brokers.
Treasury Statement.
Disbursements by the United States
treasury for the first day of the cur
rent month exceeded the receipts by
Sf.3e6,4SO, increasing the excess OF dis
bursements for the fiscal year to that
date to $50, $50 as compared with
a deficit of s3a.106,911 to the corre-
spending date of last year.
End of Cotton Pool.
The SlS5. 100000 cotton pool" which
was formulated by strenuous efforts OF
;he Treasury Department. is now ready
10 close its existence. Two New York
banks, the Chase National and the Ma
,ional Bank of Commerce. have agreed
TO furnish the $4,000 asked by south
ern bankers from the pool, this being
the sum total OF the Applications LOT
accommodations.
Overdrafts.
John SHELTON Williams. controller of
the currency, has forwarded to all ma
,tonal banks a circular. announcing that
accommodations in the form OF over
drafts is Objectionable and cannot be
countenanced by this Office"
Tie then asks that they secure the adop-
tton of a resolution from the directors
uf each bank TO the effect that no officer
o. enploye shall pay or charge to the
;seount of any depositor any check drawn
iv said depositor when there are not suf-
:irient funds to the credit OF the maker
of the check to meet it.
Washington bankers claim that neither
the national banking nor the federal re-
serve acts give the controller of the cur
rency any authority in this matter what
ever; that circumstances govern over
drafts, and that much confusion, perhaps
expensive suits, might originate as re-
suit of such action, in the event OF mis-
take on the part Of the bank. Moreover.
some customers carry two or even three
accounts. the bankers say, and the refusal
20 honor a small overdraft on one ac-
cunt might result in the withdrawal Of
all accounts and closure of business rela-
tons.
troller of the currency also asks for
certified copies of the resolution as
soon as adopted and that the copy
shall show the names OF directors
present al the meeting"
Local Securities.
Washington Gas was the leader in q
siow stock market on the local ex-
change today. but thirty shares being
sold in lots on a declining scale from
~ TO 40, with 74& bid and 75A
ssned at the close. The only other
stock sold was of a small lot of Rail-
way ard Electric common at s7h.
few Potomac Consolidated IS sold
- $50, and Washington Railway and
LIectrIc as at 81.
corcoran Thorn to Lecture.
~ a meeting of the Washington
aapter. American Institute of Bank
i2s. tomorrow night Corcoran Thorn.
'ice president of the American Sc
cHr!iy and Trust Company, will speak
O. Trust Companies" The meeting
VIII be held in the rooms of the
caapter. 1914 F street northwest
Mr.. Thorn will differentiate the dis
i!asuish,ng features pertaining to the
organization and functions of trus,