Evening star., 1916-09-10
RY L A. FLEM1NG.

Interest in security circles during the
mast week has centered largely In the
action of Washington Gas shares. IN
terest In the price movement OF ueor
town stock would also have peeh
greater but for the fact that, ASIDE from
the holdings Of the former corporatioh'
some 3,000-odd shares, the stock Oh inc
latter corporation has been largely con-
centrated in the hands of Few holoers.
This segregation WAS brought about
with a view to disposing OF the shares
to any one inclined to acquire the STOCK
at a price; indeed. the Washington Gas
Company held an option on the DOCK
but did not exercise it.
The result is that there is very little
Georgetown Gas stock floating arouho.
At and better than par 1t was seliine on
a fictitious basis-not on its mef.s' III
the dividend was not being pa!u. III. ~,
has It been for many months, on Inc ois
hoidines Of the Washington company:
The legality of the holdings OF .ne
Ia tier is before the court ana mas oeeh
for practically two years. ana expec!as
ton of the outcome mas taptinn oeet p ~
responsible for the concentration OF
holdings.
Washington Gas at New Low.
The immediate effect of the establish
ment of the cut in the prices of gas was
a drop in washington Gas shares to
ssh, or about 6k points below the re-
Gently current figures, with a recovery
we'll supported to 70A.
In the first half of the year 1915 the
|corporation earned $4,000. practically
SLOT. 900 In excess OF the dividend re, re-,
ouirements for that period. There VIII
be no cut in the dividend rate TOT the
balance of this year at least. every
where increased consumption mas Ioi-
lowed lowering of the price. and II may
he that no very serious cut will be
made in the dividend:
some of the best informed bankers
hold this view. They also oeiieVe !.
will be possible for the corporation to
nav nav 81 a share, at least. which would
J he at the rate of 5.07 per cent.
Under the gas rider to the Distrlet
|appropriation measure, the pupnc utli-
iities commission has the hnal say. aiter
completing physical valuation, eee' oi'
the price Of gas.
Security dealers and hnanclal men men
do not believe that the commission WI.
make any change in the schedule OF
price charges, hoiding enst ovnS nreh-
able cut from this source, while an ad-
vance is not even given consideration.
What 1t Might medu.
The net income Of the Pennsylvania
Railroad Company in 1915. after
charges, was $33.245.6S1. The divi-
dends called for $29,952,216.
Increased expense of the eight-hour
law would have added to the operating
costs by S5.434,000, and material re-
duction in dividends would have been
necessary had the brotherhood de-
mands been enforced In that year.
Hartford the increased wage bill would
have cut the $2.307,s7l income. after
charges, by $1.820,000. and have prac-
tically wiped off the returns.
ings, $l,656.662. after charges. would
have had to pay an increased operating
expense of $1.S02,000. would have
cleaned the slate and left not enough
to pay interest to bondholders.
There has been a large increase In
freight and passenger returns SO far
this year, but 1t Is obligatory that the
railroads are able to score heavily In
receipts to meet the action Of Congress
in passing the eight-hour law.
Glad of It.
That the intangible personal property
tax does not become effective until July
of next year is a source Of satisfaction to
those who have fretted under the old
burden and dreaded the imposition Of
the ur-tenths Of per cent on money
in banks, bonds, investments, stocks.
etc. other than the stocks of local cor
poraions.
It is practically ten months between
now and July, 1917; things can and do
happen, even in Washington, in the
course Of a year. and 1t is within the
possibilities that the efforts of the vari-
Gus committees of the trade bodies.
banks, ETC.. that have had the matter in
charge may be able to impress con-
gressmen with the heaviness Of the
burden. added to other burdens Of taxa
ton.
What Of the Eventualitiesf
The September number Of the Ma
tional City Banks regular circular, in
commenting on the full speed ahead
which industry is now pacing, suggests
that 1t but makes the adjustment that
will come after the war all the more
diflicult of adjustment.
Factors are the high wages, the poor
crops of wheat. the usage of labor
and workers generally to luxuries
based on unnatural stimulus"
The comment was made under date
MEANWHILE business continues at