Evening star., 1916-01-02
FINANCIAL-LOCAL AND OTHERWISE.

have entered the collection system con-
tend that 1t is good logic also.
| The Richmond regional bank has good
1t has paid its shareholders a per cent
dividend, and promises another l per
cent in the near future-the only one
of the twelve regional branches that
has taken this much-to-be-desired ac-
! ton.
Interesting Decision.
| The federal reserve board has decided
| that farm implements are not per-
manent investments. and therefore that
federal reserve banks may rediscount
| notes. drafts or bills where given in
payment for farm implements.
The board admitted that it was a
close question, but that the discounting
OF six months paper was within the
letter of the law
This decision will be of great value to
implement manufacturers and dealers,
as bankers may accept reasonable
amount of this paper with assurance
tnat the regional bank will rediscount
1t. II requested SO to do. 1t will be the
name OF the manufacturer or the dealer
.nat VIII be more considered than any
thlng else when bankers discount this
paper. The ruling will be of no SUBJ
stantial value to the farmer, unless he
himself has reasonable credit standing
Local Securities.
Ihe next few weeks should give in
vestors all needed information as to
now seriously the jitneys have cut
into the traffic of the street railway,
companies. Information from official
sources is that the loss is nothing like
the records made by jitney competition
In far western towns, and even in
nearby Baltimore.
That many dollars have been lost
from revenues through the increased
use OF the automobile probably goes
without saying. The first report that
will be made public will be that of the
Capital Traction Company. President
that the dividend was earned, and that
the operation of the company was rea-
sonably successful, in statements made
from time to time during the year.
Equally important. in so far as the To-
cal security market is concerned, will
be the completion of physical valua-
tions OF the utility corporations and
the endorsements. in so far as possible,
OF the findings which the utility COM
mission may order as a result of val
uations
The matter should be decided during
the coming year. The decision in the
Georgetown Gas case should come
down from the courts in the near fu-
ture, SO that Washington and George
town Gas companies may both know
where they stand.
Prices on Washington utility shares
are lower than the securities of like
corporations in cities of like population
five and per cent dividend paying
stocks paying like dividends are gen.
orally quoted at par or better elsewhere.
There is no lack of money seeking in
vestment During the year just ended
propably s4.O00.000 was paid out by
local corporations in interest and divi-
dend accounts. and the record shows but
comparatively small part of the
amount refnvested.
Steel Prosperity.
With the beginning of 1915, the steel
manufacturers hoped for so to so per
cent Of capacity production for the year.
They had not even remote idea Of the
great rush of activity that came upon
them, making them independent about
even booking orders. and SO busy and
profitable has the industry been that
millions are now going into new equip
ment, mills, etc.
The Bethlehem Steel Corporation has
spent approximately $12.oo0.oo0 on new
construction, equivalent to $50 a share
on the common stock of the company.
Depreciation charges will be liberal,
probably over $5.000.000.
The United Steel Corporation will ex-
pend between $15.000.000 and $50, 100000
for improvements. and minor steel COM
panfes are also planning extension, so
that all indications are for the greatest
steel activities during 1916 in the record
of these corporations.
With bad start, marked by cutting
into the surplus to pay the preferred
dividend, and with common stock
weak around 3s, the steel corporation
closed the year with net earnings
probably close to s130,o00,000, and is
now believed to be piling up earnings
at the rate Of 5000. 0.Oo0. 900 annually.
This great activity. with the result
ing advances in prices. has been more
or less the cause for congratulation
abroad. Foreign holders of steel stocks
have been able. where they desired. to
liquidate at price they had not
dreamed Of Thousands of shares have
been sold by English investors and by
Holland holders. Between March 81,
1914. and September 30, the latest
available date for which figures are
given, shares of the United States Steel
Corporation sold for the credit of for
eign holders totaled 453,s03, and these
shares. based on the present market,
have a valuation of over $40. 100000.
In many ways the United States has
been squaring obligations while other
nations were engaged in destructive
activity.
Holland has sold about 10000 shares
Of steel stocks. And the United States
has absorbed them, the while the mar
ket advanced and profits increased.