Evening star., 1920-03-21
BY i. A. FLEMING

ftuIlHS tIt past week Ine ueNelOp
ments with regard to local securi
ties have not been especially impor
tant. although the general actor
from day to day was rather favor
able.
The chief development of interes
was the statement by Washington
Gas authorities that the advance ir
the cost of oil for enriching purposes
had reached a point where II was i'm
possible to continue this process o.
manufacture after the expiration
of the corporations present oil con-
tracts. This was Immediately fol-
lowed with the announcement of plans
for the construction of an immense
coal gas plant. but as yet the method
of financing this plant. involving i
matter of S3.000.000. has not been de-
cided upon.
The matter probably resulted in the
selling of some investment holdings
of gas stock by investors not en-
couraged over conditions, but the
market presented a decidedly strong
appearance under the liquidation
there being but one price, 46, and tina
steadily bid from day to day.
The typesetters have a little more
than held their own with very light
trading. and thS same may be said
of the traction shares.
The increase in pay granted the en-
pioyes of the Capital Traction Com
pany put another straw on the bur-
dened shoulders of the Washington
Railway and Electric Company. for it
il not to be expected that it's en-
ployes will be satisfied with the old
schedule while the men in the same
line of endeavor are favored with
higher rates. especially when there is
scarcity of labor of this character.
The effect of the increase pay sched-
ules will be better known when the
records of the year are submitted to
the shareholders.
stone & Webster Encouraged.
1t is encouraging to find such expert
engineers and investment bankers as
Stone & Webster taking an optimistic
view of the public utility situation, but
50 far as the local field is concerned
there has been small cause for salts
faction.
Stone & Webster have sized up the
public utility situation, the result of
their findings being summed up under
six heads as follows:
First. electric light and power, with
gas companies, have been able to read
just rates and operating expenses to
offset increases in operating expenses
and continue a satisfactory return on
the investment.
Second-Street railways are grad
ually but more slowly readjusting
rates and methods of operation and
promise ultimately as satisfactory re-
suits as those obtained by gas and elec-
trio companies.
Third-Present indications all point
to the conclusion that operating costs
highest point that they will be car
ried by war conditions.
Fourth-Improved methods of op-
Grafton are introducing economics
which will, at least, partially Offset
the increases in cost of labor and ma
terials.
Fifth-There is constantly in
creasing demand for public utility
service of all kinds. including the
service of street railways. This is
earning, gross.
Sixth-Improved operating condi-
tions existing or in prospect have not
as yet been reflected in security VAL
ues.
Attention also is called to the fact
that public utility financing in 1919
was the heaviest for six years
s59O,s52.600, as compared with S451,-
s03.0oO during the previous year and
$345. 10000 in 1914.
How the Fares Advance.
There are now ffty-nine cities in
which the street car fares are on a
straight ten-cent basis, as compared
with twenty-nine cities a year ago;
one city has a. nine-cent fare. twenty
one cities eight-cent fare. 147 cities
fare.
This indicates that a population of
over 33,o00.000 is paying higher street
car fares.
Street car riding is constantly in
creasing. Attention is called to the
belief of Stone & Webster that widely
separated geographical centers show
a much larger percentage of the peo-
pie is riding, the per capita increase
in fares. numerically, being 24.3 per
of the larger population of 1919 aver
aged 135 rides, as compared with 1886
rides in 1909. The street railway in
short, is more than ever the peoples
vehicle"
Look for Some Action.
While spectators have made the
most OF the stock dividend decision
and some of the stocks of the leading
industrial corporations with large sur
pluSes, and therefore most likely to
! cut a 2nelon, have made sensational
price gains there is unquestionably a
feeling in financial circles that the
lawmakers will find way of nulli-
flying the decision. and that when
they do it will be made a retroactive
feature. which will cut the heart out
of the melon.
No decision has been made as to the
taxability of the income on stock
dividends, although revenue officials
are looking for a statement in the
immediate future. There is small
chance for any ruling exempting the
income on stock dividends or making
any ruling in this respect different
from the regulations that now exist
with regard to dividends generally.
Dividends are free of normal tax
but subject to surtaXeS, and provision
is made to prevent any evasion of the
latter.
To Increase Tax Returns.
A Hav, -,
influential lawmakers the reduction
in the minimum sum to be reported
when paid to another. The law re-
Quires payments of $1,000 or over to
be reported. but the belief is ex-
pressed that thousands of dollars OF
taxes are lost to the government
through the failure of employees
working for two of more employers
to make return of their income. In
like manner the limitations on rent
reporting may be raised if the sug-
gestion is needed.
For the Good Of All Concerned.
One Washington bank cashier has
uncovered a case of bad checking"
{ so serious that he feels called upon
to notify every other fiscal institution
in the city that this account is dan
gerous, Improbable and loaded with
chances for trouble.
A certain person drew checks against
an account amounting to nearly
$4,000. all of which were turned
= down. against a balance of less than
as many cents before an opportunity
was offered for eliminating the de-
positor from the list of the banks
customers.
In giving the promised publicity tc
this case the cashier is starting a move
ment that might well be extended and
would go far to remove the necessity fo,
lcI fha Ia md .