Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-10-08
Federal Reserve Board Ruling.

The legal department of the federal
| reserve board has been asked to answer
this question:
May director, officer or employe of
two non-member banks or trust COM
panies doing business in the District of
Colum bia. and organized under the
code of the District or under the laws
of some state in the Union continue to
hold such dual positions?"
And the answer says:
Under the code law of the District
banks ard trust companies operating
within the District are clearly under
the laws of the United States. and as
such are clearly amenable to the Claw
ton act and to provisions against in
terlocking directories--except when
permitted by the federal reserve
board
Local Securities.
During the past week activity in
special stocks has made for a good
record on the local stock exchange
Then, too, the demand for the various
issues of bonds has been such as to
make for a good volume of trading and
strong prices.
While the Washington Stock Ex
change has not enjoyed to any extent
the fruits of the return of the public
to the investment and speculative field,
1t has been due entirely to the un-
settled condition of the public utility
corporations, knowing nothing of the
ultimate exactions of the public utili-
ties commission, lacking information as
to values in the physical properties es-
Inmates, Shorn of goodwill or going
corporation value.
Physical valuations made so far have
been at variance with the work of en-
gineers employed by the corporations.
settled and agreed upon--pelhaps test
ed in courts as to legality-there will
be limited trading in these favorites
and Wall street will get much Wash
ington cash or. perhaps. occasionally,
vice versa.
Capital Traction shares rallied a lit
tie under the encouraging effect Of the
report by the president that earnings
showed continual increase.
Washington Railway and Electric Is
waiting. with the shares but little bet
ter than nominal
The Local Gas Situation.
The unexpected, undiscussed and I'M
contested cut In the prices for gas in
the District have created a condition
that may make for a consolidation later
some agreement that must be square
enough TO win the approval OIL the
utilities commission.
The commission must have understood
that claim of the Georgetown Gas
Company's directors that they could
not make a cent on the S5-cent gas
rate, when they permitted the COM
pany months ago to increase It's rate
to 81 a thousand cubic feet.
The return to the 85-cent rate would
seem to be a serious jolt to the COM
pany. lust as the cut in the rate from
IS to rs cents is sure to eat into the
profits of the Washington Gas Light
Control of the Georgetown company
ia centralized. It could be delivered at |
a price, il the utilities commission con- |
scented.
Perhaps. after the physical valuations |
are all in the matter may be taken up |
again. for it has been often under con- |
liberation, and at least once an option |
was given, and a good-sized deposit |
forfeited.
Some Comparative Figures.
AS indicating the intense dpllness in
the local public utility shares. it may
be recalled that up to this date a year
ago the sales Of Capital Traction shares
for the year totaled over 5000 shares:
this year the sales have been only 2.074