Evening star., 1918-08-19
seek LIBERTY BONDS
..FOR WORTHLESS STOCK
BY I. A. FLEMING.

WITS D L. a. = GAEfxAAA4sS
or'~Iaoerty bond holders in Washington.
as elsewhere, are being bombarded by
man with propositions to accept par
and even a fat premium in addition
in exchange for liberty bonds for stock
in oil companies. and bonds of these
and other corporations. that in the
open market have no standing what
ever, while liberty bonds. the obliga-
----tion of the American government, are
s.ellateral upon which loans may
".seadiIy be made and are salabie six
days week.
-, One stock operator, recently in
.iSdicted is said to have received nearly
$4,000 day in cash and liberty
bonds in exchange for oil and mining
,--r shares-riSl<y and more or less trou-
.o~blesome Investments, even when mace
by those who know something OF oil
~, and mining
The malls are being used to for
- ward these propositions which are
painted in glowing terms by persons
,.,.Rho do not care for the truth or have
y. regard for facts.
1t is fact that about 1000, 900 peo-
pie have invested in the various lib
erty loans. many never having previous
experience with bonds.
Some day these liberty bonds Will
sell at a premium- If holder OF
- liberty bonds feels that the cash is
necessity. he has right to sell
-Ssnd there is always a market but
.-.,he should not trade his rights Tor
.,fworthless paper OF no value whatever
ITO matter how alluring the prospect.
.is",,.; All liberty issues were higher to-
.crday. the new record on the 3i:s be-
..s4.Sng 1ol-oS-
Bonds Are Tax Free.
1t is said that the proposition of the
-TEissays and means committee of the
House TO tax future issues of state
-!-sand municipal bonds has practically
'.4been abandoned.
aaS committee the fact that this PROPOSE
tion was fraught with trouble. and he
-ls-.elso suggested that some consideration
-stbe given to liberty bonds. so that some
Weasure # relief from taxation is ex-
. hected il. the provisions covering the
s~~sleXt iSSuA.
.ss Sion to ruling made by Chief Justice
White as settling the possibility of
-0-sll taxation Cd state and municipal is
-{n regard to the right to include in
h,-an income tax the right to tax inter-
.-est on municipal bonds 1 think that
z-fhS federal government is without
Power to tax the agencies of states
governments. and that this embraces
- such bonds. The decisions of this
,.,f Court determine that where there is
g.. direct or indirect tax can be imposed
- For the six months ended June 80
IA Pennsylvania lines showed deficit in
.s-.net operating revenue of $3.299,727. as
.fGompared with a net surplus of S3,-
"a S5S.1ss in the same period of 1917.
Treasury Certificates Coming.
sc-An indefinite amount of Treasury
certificates will be issued August 20.
payable July Is, 1919, in denomina-
tions of $500, 81 1000. $4,000 and $780,
~ geo. paying 4 per cent and free of
.sraxes except Inheritance and grad
-g.Iraated income taxes known as surtax
sand excess and war profits taxes.
This issue is intended for corpora
n 'trons and big interests that may de-
i,,sjre to have the certificates to meet
income taxes. 1t will also relieve the
.j> senks of the country of the Gus
t.9mary bi-weekly issue. The certifi.
Gates are tax free on the income OF
ass.se. 900 and accepted at par with ad-
"" justment of interest any time in pay
-ment of income and profits taxes.
sei7'S The National Association OF Credit
'",..eMen wants the income and war taxes
paid in monthly installments-
-:-~~ On the Local Market.
e: Very little business was transacted
t-s sSn todays session of the local stock
erJchange- Capital Traction shares
..,,~sbrnished the chief trading, the price
ssiheing decidedly firm at So.
= The only other business was the
aaAsale of eleven shares of washington
sssh Loan and Trust Company at 236-
- Listing of the $2,100.000 Potomac
-. Electric Power Company 6s, on the
local exchange list is expected in the
A..-ip1mediate future.
.sI The directors of the corporation
have authorized fling of the applica-