Evening star., 1915-09-12
FINANCIAL-LOCAL AND OTHERWISE.
BY I. A. FLEMING.

| On the present dividend basis OF the
| utility stocks of Washington these
shares should be about the best buy
available at the present time, with
money so plentiful and interest rates so
| low. Six per cent investments on this
class of securities are not avallable
in the marts of other cities, and some
of the local utility shares pay even
more on present valuation.
There is no use concealing the fact
that investors are inclined to fight shy
of utilities, in this city at least, ana
that the chief reason therefor Is round
in the growing use of the automooiie,
not by JItney corporations, put by tne
peopie by thousands. The long and
growing list of automobile owners as
indicated by the licenses granted from
day to day, and evidenced by the ever
present car on the streets, is certain
sign OF reduced street railway traVei,
but just to what extent, SO Tar as
Washington is concerned, Will propaply
not be known until the annual reports
of the corporations engaged IN thls
business have been made PUBIC
The iitney as a factor is on the Wane
in the western and coast cities, where
it had its origin. Regulation is unwel-
come to many jitney owners VINO on-
ject to being recognized as common
posed quite generally and is a cneck
on the service.
Reports of the Portland. Greg. Rail-
way Light and Power Company show
steady reduction in the comparative
loss of earning power month py
month this year as compared with the
same months of 1914 In febfuary'
1915. the decrease in the earnings snow
ed a loss of 1S.7 per cent IN traffic over
the same month of 1917, while the loss
in May was III per cent: in June, lo.S
per cent, and July. S-4 per cent. show
ing a very radical recovery in earnings
The Puget Sound Traction. Light and
Power Company showed l4.43 per
cent of loss i'll earning power over
February. 1914, y the same month o5
1915 and this VS. reduced to an ll.3o
per cent net loss in the June compari-
sons.
Jitneys and depressed business con-
ditions prevailed in the districts named
while there is keen competition be-
tween the two companies.
Even in New York city surface cars
and the elevated lines have lost busi-
ness freely and the dividends have
been saved through the subway travel.
A comparison between Washington
and the cities named is hardly fair to
this city. as the corporations named
have large power connections and
wider territory.
Moreover, no one outside of actual
insiders will know what measures
have been taken in aid Of economies to
offset loss of local traffic. which may
be presumed through the growing use
of the automobile, the jitney service,
the business dullnesS and the fact that
Congress has not been in session Tor
the first summer in some years.
Other factors have made for inactfv,
ity in our local utilities. The physlca!
further regulation and a lack OF
knowledge of the probable action OF
the utilities commission make things
uncertain.
OF course, the local gas corporations
are not affected by the jitney or the
privately owned automobile. With as
sured earnings better than ever in the
history of the Washington Gas Com
pany. the proportions of the S4So a
share annual dividend more than
earned and conditions satisfactory. the
only reasons for weakness IN TINS
stock are suits now awaiting decision
and the possibility of rate reduction,
which is not belieyed to be prob
ability. -
But the stock market has fully dis
counted all these things in the declines
in values. so that there is no reason
why actual decreased earnings. even ~
they materialiZed, should be followed
by further weakness IN these seeuri-
ties.
Local bonds have maintained steady
prices. relatively much better tnan
bonds on the Wall street list
Nervous Tension.
On Wall street the speculative traders
In war stocks are not enjoying the
early days of September any more than
they did the closing days of August.
During the summer months large
profits were accumulated on war
stocks. 1t was safe to buy almost any
thing, pyramid profits and start the
same kind of operations with each
succeeding morning, to the Increased
rotundity of bank accounts and much
self-satisfaction.
The happy days have gone. tor
pedo from an undersea boat started the
uneasiness, then another and another.
and today the trader shivers and
shakes until he has his profit taken
and in hand or his trade covered with
a slittle loss possible, for there is
always the dread of the possibilities.
which have lately seemed almost
proba bilities, of sea disasters and other
happenings straining diplomatic rela-
tions to serious tension.
Wall street is still the mecca of the
speculator, in larger degree than at
any time since 1901. when the Northern
Pacific bubble uncovered strained re-
lations between railroad giants and
busted wide open the best bull market
New York had enjoyed for many years.
American industries are busy to ca
pacity. refusing many orders through
inability to meet time requirements, in
the manufacture of munitions and sup
plies for the allies and other nations.
Hence their stocks are still strong and
favored by spectators, but little
chill in the spine as a result of un-
toward news turns the market the
other way quickly
What will happen when the war is
over is subject that seems timely.
The purchasing power of the nations
that are now our best customers and
Of the opposing states will be ex
hausted. The present capacity pro-
duction. suddenly stopped our own
buying power cannot absorb, especial
~ with home conditions as they are; 4;
labor will not willingly submit to the
I loss of the advantages gained by rea-
son of wars demands on production
and there probably will be enforced
shut-downs and unfavorable business
conditions.
All this the average Wall street
trader has on his mind-he would like
| to make the turn just at the logical
moment-but this is possibility of
| chance only. the fraternity is nervous
and unhappy.
The Financial Center.