Evening star., 1919-04-06
FIlANCE-LOCAL g. OTHERWISE


nual dinner of the Washington Chap
ter. American Institute Of Banking
Because there are SO many young
people in the organization-some forty
young ladies have joined and will at
tend the dinner-the final hour of the
evening will be given over to dane
ing.
Frank ]. Hogan will be the toast
master. With Rev. James L. Gordon,
ID, and J. Harry Covington sched-
uled as the speakers there should be
an oversupply Of very enjoyable wit
promised to keep the ball rolling from
the tap Of the starting bell
Above Low Prices.
AS a rule local securities are selling
slowly at something better than the
low prices of the year, which, all
things considered, is q. very good rec
ord.
There are some securities that show
only very slight improvement over
the current low 1919 prices and yet
even these are doing as well as can
be expected.
The future of local street railroads
is attracting much attention. Both
operating companies are making
more money. gross, than they ever did
before-admittedly and it does not
look as If it were possible to further
increase earnings-not profitable, at
least for the Washington Railway
and Electric Company unless at q
higher return per passenger.
There has been some talk of bank
consolidation during the past week
and rumors of new banks, both saw
ings and national, but nothing has
actually developed in the way of
mergers, while new banks, with the ex-
ception of the Citizens Savings Bank.
are in embryo.
The feature Of the week in the stock
market was the advance in MergeR-
thaler to 1877 and the steady improve
ment in American Security and Trust
Company shares.
A Wise Suggestion.
J. S. Bache & Co.. have this to say
on very important matter:
If any criticism at all Of the man
agement of the steel corporation can
be made it is that it does not stabil-
! ize it's common stock by establishing
a dividend reserve fund, out of which
can be paid amounts, If needed in
lean years, to keep the dividend at
a fixed rate. The Bache Review has
I contended for many years that the
country's greatest Industrial common
stock should have it's dividend pro-
tected by q fund, set aside in pros
porous times to insure regular pay
| ment of a fixed minimum dividend.
Instead. the dividend is now allow
ed to swing as high as seventeen per
cent and as low as zero. as it has
done twice in it's history, and only as
recently as three years ago, when the
dividend was passed altogether and
for a whole year no disbursements
were made. Here is the ragged record
organization. In 1901, 3A per cent
was paid; 1902. 4 per cent: 1903. 3h
per cent; in 1905 and 1905 the divi-
dend was passed: in 1906. III per cent
was paid: in 1907 and 1903. 3 per
cent; in 1909. 2x per cent; in 1910.
5 per cent; in 1914, AZ per cent; in
1915. the dividend was passed and
nothing paid until March, 1916. when
q per cent rate was inaugurated.
In 1917 and most of 1918 the divi-
dend, with extras, amounted to II
1918. the rate was dropped to the
| equivalent of 13 per cent. and in
March, 1919. to that Of 9 per cent per
annum, and the whole speculative
| world is now agog to guess what
will be done on the next quarters
dividend
Instead of becoming, as it is en-
[ titled to become, a sound investment
] stock, it is the acknowledged leader
| of the speculative market; witness
| the swing in it's price In the past few
years. Selling at SIS in 1901. 1t drop
ped to Is in 1904: from 81 in 1910.
| it dropped during the next year, to
| 50; in 1915, from 1914 to So; in 1916.
| from 129A to 1871 in 1917, it ranged
from 1868 to 79k. In 1918, its low
/ point was s6h. on March Is. from
which it rose by May 16. not two
months later, to 113Z-the top of
the spring movement Of that year.
Then followed quick drop to 96h
tby the 1st of june. Aftsrward In
| August. the price touched the high
level of the year, 11Sh. and was
fairly steady through September and
part Of October. In the latter part
Of that month it started . downward
flight, reaching low point on Feb
iiruary 10 Of this year at S8A. Now
| it is accomplishing the spring up
| ward movement, and speculative in
| terest is eagerly haZarding opinions
| as to whether or not 1t will mako the
full 25-point swing before summer.
as it did last year, and then decline
awaiting the fall upward flight
It is interesting to speculate as to
what keeps directorate Of such
| transcendent ability as the steel
corporations from taking action
which will remove this great stock
| from the highly speculative class and
place it on an exalted plane as the
greatest common stock investment
in the world.
NEW YORK COFFEE MARKET.
| ME-" WORRY AnrjI S-Tha ms rk at