Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-11-26
CORPORAT|ONSARE
SELLING LIBERTIES
Disposing of Government
Bonds to Deduct Losses
in Reporting Income.
BY I. A. FLEMING.

Liberty bonds Of all issues except
the first MS. which are tax free with
out conditions, have suffered material
ly in the last few days. the second IS
closing yesterday at S1.9s: second A s
at 1924, third ANS at s4.30 and the
fourth ~ s at 1928, while the victory
3A were quoted at 1914 and the "A $.
victory notes. at 1920. The first and
second AIS, converted 3L2s. are selling
at the highest price Of any issue. 101.
while the first As. also converted from
3hs of the first issue, are quoted at
Financial interests appear to be
disappointed that the purchases for
the sinking fund by the government
have not been larger and more eff
fective in steadying the bonds. but
just at this time the market is I'M
der the weight of heavy realizing by
corporations disposing of their in
vestments. as a preliminary to taking
their losses for their income tax
statements. Losses on securities can
not be taken until the securities have
actually been sold. Deducting loss
from gains will make a difference in
the income tax payments Of large
corporations. whose excess and sur
tax totals run up into big figures.
There Is a further reason for the
weakness in liberty issues and that
is the low prices prevalent for bonds
generally. the present market values
almost invariably grinding near the
low point.
High grade rail bonds are now S.62
points below what they were year
ago; public utility bonds are 1908
points off. and industrial issues 1.56,
the average decline of the group be-
ing 1877 points as compared with the
quotations of one year ago.
Bonds called for payment in the
month of December total 1928, 560,5oo.
National Banks Not Buying.
While savings banks and some trust
companies have been in the market
for liberty issues. national banks of
this city have not made a practice OF
buying these issues. Occasionally
they have taken bonds from Gus
toners for sale and Immediately dis
posed Of them through a private wire
house on the New York market
The flood Of liberty bonds on the
local market has practically ceased,
although the daily sales continue
moderately large. but the cream Of
this business has been garnered.
liberty issues to local advertisers for
cash have not been badly used, the
quotations being reasonably close to
the big New York market.
Yesterdays sales on the Wall street
market were nearly s20,O0O.000 Of
S12,000.000 the day previous.
Any one not familiar with business
Gust oms and methods should consult
a banker before investing or shifting
an investment.
Elects Vice President.
The Merchants Bank at meeting
Of it's board of directors this morn
ing elected Joseph A. Berberich. well
known business man, a director and
also first vice president.
1t is understood that Mr.. Eerberich
has just purchased a large block Of
stock of the Merchants Bank. now
quoted at about $40 share, and his
election to the vice presidency is in
keeping with the policy of the bank
to align large business interests with
its future.
Mr. Berberich has long been identi-
fled with civic matters and his inter-
est in the Merchants will be advan-
tageous to that institution.
Within the next few weeks the
Merchants Bank will move from its
present location, 1414 F street north
west. to it's permanent home at 1913
G street northwest. which has been
remodeled to the extent of being prac-
tically rebuilt.
Roland Robbins, manager Of Keith's
! Theater, was also elected a director
of the Merchants Bank this morning.
Mergenthaler Stronger.
In all so shares of Mergenthaler
stock sold on today's session of the
local stock exchange, the first few lots
at $40 and the later sales at 140k.
Lanston sold sparingly at 80 ex-divi-
dend.
Capital Traction shares were in
better demand and firmer at 91h. A
! little Railway preferred brought So.
The whole list showed a much better
tone, although the trading was con-
| fined to the issues named.
Foreign Exchange.
Pound sterling was quoted this
morning at $4.055; French francs at
.1031 cents each; German marks at
1855 cents, and the Italian lire at .0835
cents each.
Personal Mention.
| William f. Cadwallader, cashier OF
| the Commercial National Bank, who
| has been absent in northern New York
and Canada for several weeks, has re-
turned to the city.
| George o. Watson of the Liberty
Savings Bank has returned from Can
| ton, Ohio. where he inspected the new
vault being constructed for the Lib
| erty National Bank.