The Washington times., 1915-04-16
NO REACTION YET ON
NEW YORK EXCHANGE
IndustriaIs, Particularly "War
SpeciaIties," Register Good
Gains on Floor.

NEW YORK, April 16.--Evldonce Of
the much talked-of reaction was still
lacking in the stock market today.
While the railroad issues, in tho ma
! jority Of instances, after showing
small advance at the opening, eased off
to hover fractionally above the last fig
ures Of yesterday, the industrials, par
ticularly the war specialties' register
good gains. which in instances were al
most phenomenal The volume Of trad
! ing was especially heavy. the sales for
| the first hour totalins approximately
! 500, 900 shares.
! American Locomotive was the sensa-
| ton Of the day, playing a part not un-
like that which Bethlehem Steel recent.
ly held. Having closed yesterday at
491. the stock opened this morning from
1874 points, but broke quickly to b6h:
recovered to SO and then fluctuated
around so. The reason advanced Tor
the sky-rocketing Of LocomcSive was q
reported order from the allies for be-
tween &3O.0Oo,0o0 and $+O.0o0.Ooo worth
of shrapneL
Scarcely less active than Locomotive
New York Air Brake COMPANY stock'
dcrs, having opened up points at 80,
| Jumped to "a. a total gain OF is points
for the day. but later eascd of slightly.
other railway supply ss,I,ss st1Ess s,ee1 wefs
|
Spring stock sold up 81 points to Sota,
and Pressed Steel Car, Az points to
42h, while American Car Foundry was
up 81 points at bst;
advance yesterday, continued today
with an early gain OF ~, points at 49,
but later reacted a few points.
United states steel. playing the role
more than a point by selling fractio,l-
ally above IS. The copper stocks were
again strong, Amalganated ADVANCING
"a in the early trading to 75l1. and
the Arst hour sold up 2's points to Ss'2
Lehigh Valley and New Haven werc
the strongest of the railers, the former
recording a full point gain at 1891, and
3 points at 65lA. a portion Of which was
lost later
John G. johnson. of Philadelphia, who
was engaged by the executive commit
tee OF the trust company section OF
the American Bankers Association tc
write ans opinion on that section of the
Federal reserve act which permits ma
| tional banks to assume functions here
tofore limited to trust companies. sub
mitted his argumente yesterday. assert
ing that the law giving national banks
the additional powers was unconstitu
tional. The opinion was made public
1 .
trust company section OF the American
Bankers Association.
u In the opinion. Mr.. johnson main
tains that Congress has no power tc
| confer on a national bank the author
ty TO act as executor. trustee, or regis
trar. The national bank. he holds
must have franchise to be warranted
: to act as a trust company. and such
FRANCHISE. he maintains, Is beyond th'
province OF Congress to confer. Ever
| No conferred. ADDS
1t would be within the power OF thu
United States, or OF state, or OF
, stockholder Of bank dissatisfied will
the acquisition OF such a new line o
business to question the exercise by
. national bank OF its new functions.
Mr.. Johnson says further that in hi
opinion a national bank which Is au
thorized to act as trust company un
der power delegated by a state legis
lature Is still without valid power s'
. to act. He holds that nationa
: bank. being a Federal sreatior,; , Is no no
I amenable to any franchise which
State might grant. ~
I'm my opinion. concludes the la"
E yer. "the courts could refuse to ap
point national banks as trustees. eve
though requested by the parties in In
terest: could remove them from sue
trusteeship. and would be obliged t
interested in trust property, Wha
would be more anomalous than the act
ing as trustee by a national bank
I | which had no legal power under IT
charter so to do. under suppose
| grant of power by the State? Woul
the national bank be two corporation
or one? Would 1t be amenable to dis
cipline by the State?
TT would seem to me that 1t woul
he to the last degree inadvisable for IN
4 state to grant the power and thus brin
about, first. conflict as to the le
s gality Of the grant. and, secondly.
! most anomalous condition Of respons
( b!lity on the part of the trustee"
|, Tzal II. McCarter, chairman OF tf
executive committee of the trust con
pany section Of the American Banker
Association. announced yesterday that
. special committee would proceed E
quickly as possible to test the const
e tutionalitv OF the section OF the Fedcri
O reserve act in question The Banker
h Association. as a body. Is taking
action In the case.