Evening star., 1916-08-13
BY I. A. FLEMING.

Much interest has been shown IN
financial and investment circles during
the past week over the passage by the
Senate of the intangible property tax
measure and its effect on Washington
investments and moneys on deposit in
the banks of the city.
The action Of the Senate was entirely
unexpected, and was not preceded by
the usual hearings on important pend
ing legislation.
Should the amendment be accepted by
the conferees on the District bill II
would impose tax of four-tenths OF
1 per cent on bonds except government
issues: would place a tax on every
share Of stock owned by citizens of the
District or residents. with the excep-
tion of "the stock of banks and other
corporations within the District Of CO.
lumbia."
This would naturally include all in:
vestments in Industrial or ra1lroao
shares of corporations not doing busi-
a very serious inroad on the incomes OF
many Of the people of Washington.
That local public utilities are not sub
ject to the tax might be counted on To
increase the Investment demand for
these shares, and the switching Of i'm
vestments from all outside and local
bonds to local stocks, but for the fact
that the will of the lawmakers with
besafS BEEN finaily al sn and definitely ascertained
A study of the quotations for the year
to date, published elsewhere on this page
will show that the ra-ious public utility
shares are now quoted not far from tne
very lowest prices of the year.
The physical valuations SO far made by
the utilities commissions experts have not
been satisfactory to shareholders in these
companies, nor Is there any reason 10
expect any great variance in the appraise-
ment of the Washington Gas Corpora
tion's pipes, meters and other property.
May Be Years in Adjudication.
It is within the probabilities that the
questions incident to physical valuation
will be matter for the courts to pass
on, and the suggestion is made that a dec
ade of litigation may be necessary to de-
termine the final adjudication Of the
matter.
In times past Washington securities
were among the most inviting invest
ments offered in any market; they main
tanned even values with but compare
lively little fluctuations. and depression,
almost panic in the great speculative mar
kets of the country, had but passing and
limited effect on their values.
There are over $4,000, 600 of local bonds,
owned chiefly by residents Of this city.
On the basis of the four-tenths OF ! per
would be subtracted from the annual in
come of the owners of these securities.
There are $4,000, 900 Of deposits. much
Of this amount the savings Of wage
earners. in the banks. trust companies
and savings banks Of Washington. and the
four -tenths Of 1 per cent tax on this
money would be $372. 900. and the poor as
well as the well-to-do and rich will have
to meet 1t II the law is enacted.
No provision is made in the amend
ment that will give corporations the op.
ton Of paying these charges. should they
be imposed, as frequently granted and
assumed by corporations in order to
make their securities more attractive.
Further increases in taxation are sug-
gested by the proposed reduction in the
minimum income. taxable. and also IN
the probability Of the doubling the tax
to 2 per cent on the minimum.
Proposed Cut in Cost Of Gas.
The District bill contains another
amendment which proposes seventy-cent
gas to the government and seventy-five-
cent gas to the city,
This measure, enacted by the Senate,
schedules October 1. 1916, as the date
for the cut to become effective. Tho re-
duction in prices would also influence
the sales to government departments,
etc, and the full effect would be 10
per cent reduction on the entire produc-
ton.
Based on the returns Of 1915, $2,247, 516
on gas sales. a ten per cent reduction
would make cut Of $224.475.
It is understood that H. S. Reside.
president, Of the corporation. made per-
sonal appearance and entered protest to
the proposed cut
The New York supreme court set
a precedent in gas values that has been
frequently referred to in the last few
years, and 1t Is probable that any en-
forced reduction will lead to an appeal
to the courts. Holders OF gas shares
now await anxiously court decisions OF
more or less vital importance on cases
awaiting adjudication.
Farm Loan Board.
Although the federal farm loan board
has been in existence less than week It
has had several requests for farm loans
and Inquiries for purchasing farm loan
bonds One enthusiastic individual has
requested the farm loan board to be per-
mitted to purchase the first $4,000 Of
farm loan bonds issued, and several hun
dred have asked for loans on their farms
One farmer In the south wrote tho
board that the mortgage on his farm was
due September II and wanted to know
II the board could let him have loan %