Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-01-02
GOSSIP OF THE STREET
BEAT INCOME TAX
BY BOND SELLING
Deluge Of Security Sales for Reg
istering Losses for Last

:, days past was not at all surprised At the
deluse Of selling which occurred early
In the week. when on one day record
Of close to $i5.0o0.ooo Of bonds were
sold on the New York Stock Exchange.
Almost every one knew that the last two
days Of the year furnished the climax
OF liquidating market for which there
Twas only one explanation-the register
ing Of losses for the last year in antici-
&pation OF income.tax returns.
Mn the ordinary course Of business
Monday was the last day on which Sc
se'rities could be sold for that purpose.
"a britain banker pointed out that any
one who Intended taking this method OF
establishing his .losses could not do 80
ION Tuesday as. according to the rules.
settlements on sales and purchases are
made the following day. and as yester-
day was holiday the transactions
fwould have to 60 over till the following
business day. which is today. this would
bring It into the new year and therefore
would not accomplish what was In
tended.
Al the wave of liquidation continued,
especially during the early part Of the
seseion on Tuesday. q new reason had
I TO be found. It was then discovered
that many transactions were being car
ried out In cash. In fact It was said
there were more transactions In cash
than ever before In the history OF the
New York Stock Exchange.
q As to the validity Of this method Of
festablishing losses. a well-known banker
Ebaid he was not certain that there had
ever been a ruling on that particular
phase Of the subject by the Treasury
Department. but he believed the Gus
lom during the last few years had be-
pome 20 prevalent that the best legal
kdvice had no doubt been obtained. and
hat the practice was within the letter
q the law. Last year. however. he
ldded. 1t had assumed the nature OF an
lbuse. and always when that happens.
be said, new legislation is enacted to
overcome the abuse.
Several brokers expressed the opinion
HAT many OF those selling were also try
ing to buy back again as soon as their
losses had been registered and that this
movement had created the advance in
prices in virtually the whole list in
the latter part Of the session on Tues
day, a movement which they anticipated
would continue for some time after the
opening Of the stock market this MORN
ing.
This opinion, which was pretty gener-
ally held in the street. was predicated on
q similar condition last year on a
smaller scale. when a number Of in
vestors registered their losses in the
same way. and before they could buy
back their securities again the specu-
lators jumped In and put UP prices to
aimed from selling to establish loss.
A broker who was asked his opinion
ID to whether the same situation was
kely to be created this year said that
WAS nearly always safe bet
hat the market will not do what every
ne expects 1t Is going to do. For that
feason he did not look for any sensatinal
developments 80 long as the money COM
mittee remains in control.
"The Corn Exchange" that up-to-date
monthly published by the equally up-to-,
date National Bank bearing the same
u issue over the signature Of its pres
ident:
Will likely bring closer relations
between employer and employees in
many American plants.
large corporations that have always
been successfully managed establish
plans for cooperation and mutual
benefit of company and men; when
as represent the Chamber OF Com
merce Of the United States devote a
large portion Of an important conven-
tion to the careful study OF this sub
ject. we may well believe the leaven
10 working and many others Will be-
n come interested.
"A few days ago we were talking to
MI; Blumenthal. Of New York; who
perience. His people had saved
Il $4,000 In one year by reducing the
amount Of seconds formerly consid-
turing pushes Half went to the men
and half to the company. Mr.. Blu
menthars only objection to the plan In
operation In his mill was his difficulty
in measuring up to his employees high
We have from time to time pub.
lished articles on this subject and
have Information regarding several
successful plans in operation.
II you are interested In learning
what others are doing. let US know.
When the news came over the ticker
sn Tuesday Of the sale Of a seat on the
New York Stock Exchange for 10000
In advance OF $4,000 over the last pre-
Ceom8 SAFE WelI-knoWH pTokeT Here
said 1t was the best evidence OF an i'm
proved sentiment he had seen for sew
eral days. A seat has been sold on the
exciAnge during the past year for $4s.-
n 900. he remarked. and II my recollec-
II tion 10 correct. 1t was sold about the
time things looked worst for the Allies
n in Europe. Another thing. he said
which argues well for greater conf
4 denee In the New Year is the increasing
strength In Liberty, Bonds.
He said He believed the fund which
was provided by tho Government To
stal 'lise the market for the bonds was
beinA used to an extent, but that, he
said, would not, altogether account fol-
tho increase In prices In the face of the
large number Of transactions. many OF
which were for large amounts.
4 He said that as In the case of stocks
many Of these nsactions were fol-
cash, and II was evident that In many
instances they would be bought In again
The principal of large investment
house which deals extensively In high
grade rails and equipments. called at
tention to a comparison between the
clocing prices In such stocks as North
ern Pacific. New York Central. Reading
a In rad