Evening star., 1918-05-26
BY I. A. FLEMING.

There have been numerous evil
dences in the last few weeks that
there is ample money in the hands Of
the people waiting to be brought out
and invested on the right kind Of a
proposition. One of the most con-
vincing and confrmatory facts was
the sale made in couple OF hours
one morning last week of $2.00O.000
one, two and three year per cent
notes of the Timken Axle Company of
Detroit, sale books being closed be-
fore 1890 O'Clock in the morning.
Washington investors took Wnat
they could get and were booking or
ders for more when the sale closed
abruptly on advices from the Ma
tional City Company of New York.
agents of the note makers.
Short-term maturities rather than
long time securities are naturally ia
vored for the reason that with the
changing conditions of the day, with
the possibilities after the war. in
vestorS like to have their assets
readily convertible into cash.
Another noticeable feature OF local
investors buying operations at this
time Is a desire to buy ana hold Sc
curities listed on a broad market
where action is matter of every day
and where they are not likely to suf-
1cE LOSSES as d TeSull VI dIl GAtI
narrow trading. movement.
Bond houses generally report i'm
proving business from all sections of
the country. proving that the liberty
loan campaigns have not exhausted
the investment market by any means.
With the practical certainty OF
higher taxation rates. state and mu-
nicipal issues will be favored from
this time on. Bonds will be more
closely scrutinized for the tax-free
covenant relating to income taxation.
No one knows. of course. just how
large the increases will be in the in
come tax assessments. 1t Is admitted
that larger revenues must be raised
by taxation, while the corporations
and business men hope that simpli-
fication of the dual income tax laws
now in force will be effected before
the end of the year.
An Interesting Case.
In 1912 the public service commits
order requiring the New York Rail-
ways Company. before paying any in
terest on its income bonds. to expend
20 per cent of its gross operating
revenue for maintenance each month.
beginning with January, 1912. and
that any unexpended portion of this
amount should go to an account to
be called accrued amortization Of
capital"
The appellate division of the su-
preme court sustained the commits
sion's order. A higher court reversed
the ruling and held that the commits
sion had no right TO make such order.
In the meantime the accrued amor
tization" has $3.127.25s in cash to its
credit. Bondholders who have re-
1916. payment think this cash should
be distributed at once
Guaranty Trust Co. of New York.
The Guaranty Trust Company of
prospective intention of coming to
Washington, despite the growing i'm
portance of the capital. Nor has 1t
made any offers for the site on the
southeast corner of 18th and streets.
The Guaranty Trust Company Of
Munsey building. a real estate and
loan corporation. did consider the
purchase of the corner referred to and
actually made a preliminary and con-
ditional deposit thereon. But the
matter was not consummated.
Similarity Of names coupled with
frequent references to the site cre-
ated a wrong impression.
The Guaranty Trust Company Of
New York city Is represented in
Washington by Frederick w. Steck-
man.
In a personal interview Mr.. Steck-
man said:
"The Guaranty Trust Company Of
New York has never given serious
consideration to the suggestion that
II open a branch in Washington.
Moreover, the laws of New York,
under which 1t Is chartered. express
1y prohibit 1t from establishing
branches outside of New York city,
save in foreign countries. 1t now
has branches in London and Paris"
Mergenthaler Linotype.
Speaking of Mergenthaler and its