Evening star., 1918-06-07
SERVICE CORPORATIONS
i Have Strong FRIENDS
BY I. A. FLEMING

The affairs of the Public Service
>, Corporation CT tho United States. re-
.ferring especially to public utilities.
are exciting considerable interest at
this time.
Leading bankers Of the chief cities
OF the nation will meet during the
coming week to take counsel regard
4ng the methods to be adopted to meet
the call of the various public utilities
for renewals and for fresh financing.
The War Finance Corporation has
taken the position that public utili-
ties are without the scope of its gen
tie care, much to the disappointment
Of the banking fraternity. which con-
sidered this part OF the business OF
the war was OF sufficient Importance to
be cared for by the corporation.
The public service corporations are
not without influential friends in high
places. Paul NJ. Warburg Of the federal
reserve board and the capital issues
committee has taken a strong stand In
the interest of the thousands OF In
vestors whose funds are practically tea
up in stocks and bonds OF utility COM
panies. many Of which were strong and
solvent befo9e the war. but have been
brought into Strengthened circumstances
through the steadily mounting wage
scale and the steady increase in the price
OF all materials
Mr.. Warburg says:
"The drastic shrinkage IN the value
of public utility investments and the
impairment of the credit of these
corporations is source or grave
danger to the general financial situa-
ton in these times. We need the
savings of the investor and it would
be a serious menace to the abillty OF
the government to finance the war
~ these public service corporations.
strong and solvent before the worlds 8
confiaeration. should be forced to so
into receivers hands because of con-
ditions for which they are in no way
responsible.
both on account of innocent investors
and on account of preserving the ply
sical development of corporations,
whose operations are needed on ac-
count Of their direct and indirect ef-
feet on the prosecution of the war
and the health of the people.
The War Financing Corporation is
willing to help the banks of the coun-
try in any efforts put forth 70 help
utilities. Where banks take utilities
lateral for their own notes to borrow
from the War Finance Corporation,
and II they accept bonds of the War
Finance Corporation they can use
these as collateral with the 1ederal
reserve banks.
BY this method the War Finance
Corporation holds the banks notes.
secured by public utility securities.
an indirect and not direct loan.
Something definite will probably
result from the bankers conference in
tho near future.
Local Committee Acting.
John Joy Edison and Eugene E.
Thompson. although they have not
been reappointed as the advisory com
Inittee Of the fifth district Capital Is
sues Committee. have been requested
tions have been presented and one or
two applications have been disap-
proved. No favorable recommended
'tion has been reported. as yet.
On the Local Stock Exchange.
A few transactions were made on
this afternoons session of the local
stock exchange, the last of the week.
at 220 for American Security and
sTrust Company shares. 1os1s for Mer-
genthaler. 65 Is for Railway preferred
and s7A for Lanston script.
Interest Will Be Adjusted.
Treasury certificates maturing June
Is may be used to pay income and
excess profits taxes with interest ad-
Justed to June Is. even if the pay
ment is made before that date-in |
of his interest through using his
Treasury certificates in advance. He
may, however. retain his certificates
and make payment after June Is,
when they will be accepted with in
'terest adjusted not beyond June IS,
the date of their maturity.
This ruling was made by D. c.
Roper. internal revenue commits
Hioner. today. in the hope that 1t will
facilitate the work of COLLECTORS who