Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-03-17
WASHINGTON RAILWAY
BONDS ACTIVE TODAY
Comment on Action of Utility Com.
mission in Fixing Price Limits
on Bond Issues.
Minimum of 1O5 on Capital Traction
5 Per Cent Bonds-Finan-
cia1 Gossip.
BY I. A. FLEMING.

Washington Railway and Electric 4
per cent bonds were the active leaders
in a market, devoid of other features
on the Washington Stock Exchange
this afternoon. There was an increase
in the offerings of these bonds. and the
price eased from ST to SO%, but the
weakness was only temporary. and the
final sales were again at 81. A $500
bond of the same issue sold at 81 y.
Bid and asked prices for other bonds
did not show any material change.
Washington Railway and Electric
preferred practically monopolized the
business in stocks, quite number of
odd lots being sold at 81. The only
other transaction was in Mergentha1er,
an odd lot Of which sold at 172.
1t Is reported that the receivers for
the bankrupt firm of Lewis Johnson &
Co. have sold $21, 100 Georgetown Gas
certificates to local bank at 1O1.
Treasury Statistics.
Disbursements of the Treasury De-
partment of the United states for
March Is exceeded receipts for that
day by s642,075. making the excess
disbursements for the fiscal year. to
that date. s1o5,752,074. as compared
previous fiscal year to the corresponding
date of $49, 252.5SS.
Capital Traction So Limit, 1o5.
While 1t has been known in inner
financial circles for some time that
the Washington utilities commission
had fixed a price of 1oS as the minimum
at which the Capital Traction Com
pany would be allowed to sell sS6o,5oo
bonds, that IT desired to market, the
.act has not been In general circula-
tion.
Commenting on this limit and also
on the limit Of 1903 fixed by the COM
mission as a minimum for an issue or
$500. 900 Gas IS, offered at time when
The bond market was decidedly weak
and money rates strong. Crane, PARIS
y Co. in circular issued today nave
this to say:
,any last month concluded the sale OF
100000 of its general mortgage
per cent bonds at 1913, the price fixed by
the public utilities commission. me
cornpany Is to be congratulated on the
in,nrovement in general market condi-
lions and that they were able 10 dls.
nose of their bonds; but had the market
declined, would they not have been
confronted with most extraordinary
market conditions who arbitrarily say
that securities must not be sold at less
than . price regulated by the SAFE OF
a few bonds? It Is recalled that just
such . nishap occurred when he =, the &c com se-
,,uTed for the s36o.60o Capital Traction
first mortgage per cent bonds with
the result that, out of this amount. the
company had been able to dispose OF
but $4,000.
SAT the time the order was issued fix
mr. the price at los the company could
nave sold the $36o.5oo bonds around
Ios, and since which time they nave
aarket at 1o6. we submit that in all
saIrness the corporations should be the
5est judges of what they can obtain
or their securities. There can De no
question but that proper accounting
nd future statistical requirements
ieem IL best that bonds be sold in the
aarkets rather than giving the share
holders the privilege to subscribe at
price below the market, for the share
older will ultimately benefit as much
Nv the sale of the bonds as by receiy-
ng rights to subscribe. punlc
Utilities commission is an essential part
Of the government Of every large CITY,
md such a commission is the repre-
sentative of the public IN governing
operations supplying public service.
lor 1t must be recognized that the
public have an important side to public
sefvfce. the same as the corporations
responsibility to Its stockholders, and
I the public utility corporations are
20 be restricted in selling their Sc
rurities-after they have invited and
receiyed public bids-at a price to be
fxed by the commission. 1t is sure to
prove an injustice to the corporations,
which In the end means their stock
holders.'
Financial Notes.
Washington Association of Credit
nen will give a luncheon March Is. at
which Samuel J. Henry. a well known
iocal banker, will talk on THE Deve1-
oprnent of a Model Financial Statement
Forn," and c. F. Sesbit. superintendent
Of insurance of the District. will speak
on The Prevention of Waste in Fire
Insurance"
The Russian government is negotiat-
ng with the Westinghouse Air Brake
company and the New York Air Brake
'.ompany for s3s.ooo,ooo worth of
shrapneI
Si1ty-day money IN New York city
= at 2k per cent
Clearings of New York, Chicago and
eoston banks decreased yesterday to
me extent of s55,397.5s5 in the aggre-
cate. as compared with the clearings
Of the same day in 1914.
Western Electric's surplus for 1914
eoualed ELLA per cent on the capital
stock, as against 1881 per cent for
1913