Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-06-15
Bond Issues Handicap.


tion and vet it is the custom to CAPT.
taIize expenditures, but each bond put
out is an added charge on the corpo-
ratfon-thus the recently issued Sl,-
500. 600 bonds of the Potomac Electric
Company will absorb $4,000 of the
revenues of the company for the next
twelve months.
A closed mortgage is a good thing
for a corporation or would be II there
was not some way of beating about
the bush in the creation OF a 1urther
debt.
shareholders should oppose rather
than encourage bond issues for the
reason that bond issues jeopardize
their Investments, unless big returns
for the costly investment are assured.
They would better go. without divi-
dends for a period.
A Possible Straw.
>, II is a far cry to Memphis from
Washington, but there is some WASH
fngton capital interested in Memphis.
Higher streets car fares were maze
an election issue in that city and a
scent fares. the pre-war figure IN
ninety-nine out of one hundred Amer
lean cities.
Yesterday word was received here
that the council had granted scent
fares as a recognized necessity.
Perhaps there Is still chance that
the local utilities commission may
aid the local traction company In It's
difficulties
Hesitated at Action.
Directors of the Washington Rail-
way and Electric Company hesitateo
At cutting of the common dividend
areading the situation that would be
created by the subsequent default on
the utilities company notes. but they
We're strengthened in their nnal &C
tion by the assurance that the pre-
ferred shareholders would find cause
for protecting their rights in the
event of the declaration.
These same preferred shareholders
will watch developments with close
attention. in the interest of econom-
ical management as becomes cor
poration with too many feeders that
do not feed with resultant profit.
One thing is among the probabi1f-
ties-the next annual meeting of the
company will be of more shareholders
than any of the previous gatherings
for years.
Would Curb the Curb.
The New York curb. widest of wild
markets upon which obtaining even
correct quotations is next to an i'm
possibility. has been virtually on the
carpet for some days. during an in
HeStlRdtlOn Dy tne QlStTiCt Attorney
in New York city, of the "scandalous
conditions which have permitted ir-
responsible brokers, stock jobbers
and mining operators to play horse
with the public's money"
Suggestions were made looking to
the elimination of the curb. through
the housing of that organization,
where control of membership and list
ing of securities. only after searching
Investigation. would be possible.
hav t,v ha
stricted, open air. rough work.
About 500 brokers do business on
the curb. about 80 per cent being men,
bers OF the Curb Market Association,
the rest being referred to by the as
ISOLATION members as pirates. These
were not represented at the investi-
CATION.
Members of the association desired
assurance that II they located indoors
they would be protected from the
''rabble" outside, matter that they
were informed was up to the chief of
police.
Should Be Careful.
Listing committees of organized ex-
changes should not be careless in the
matter of investigating all applica
tions for the privileges of the trading
list. The statement of an interested
broker should not be accepted. but
a committee should be named, with
real workers thereon who would be
able TO delve deeply, as does bank
when passing on a credit application
of 4 big merchant.
The public is credulous. decidedly.
and when the speculative fever is on
will even believe in the come on"
circulars of downright takers. prom
3sine dollars of profit within the next
forty eight hours-"the price will
advance next Thursday"
II is true that the curb is the try
tng out place for some stocks and that
Standard Oil shares were once a play
thing on the curb. but 1t is also true
that the curb market. as rule. sadly
needs the controlling power of a curb
bit.
District Bankers Convention.
All bankers should get back of the
District convention to be held on the
25th and 26th-instants. at Deer Park,
Nd
Every effort is being made to make
the convention a downright and COM
plete success, with a record of ac-
ccmplishment, something that has
rarely bee done in the various meet
ings of the association-lackinR in
harmony and authority TO put real