Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-12-28
LOCAL SECURITIES
SHOW EASIER TREND
Railway rs Off to 81 liz.
:. Local Bankers Honored
" by A. B. A.
BY 1. A. FLEMING.

By I. A. FLEMING.
J! There was a fair degree of activity
1t the local stock exchange session
This morning, part of which was In
the nature of belated taking Of losses
for income tax purposes Prices did
not show any improvement. but on
the other hand. tho shading OF values
continues. in keeping with the general
lower levels for investments the
world over.
) After the enormous business in TAX
ing losses in Railway IS at the pegseu
price of 50 stopped. the market Tor
these bonds slowly eaeed to o. max.
ting further receSSions on moderate
~ Potomac Electric general bs sofa
"a to s2E-, while Capital Traction IS
brought Sc.
Capital Traction shares sold at san
and 200 shares of Columbia Grapho-
phone common brought sA, the gong
price on the New York STOCK Elk
change at the time of sale.
= Aergenthaler sold sparingly at 40.
Interesting Income Tax Decision.
An interesting decision was recent
" handed down by Judge Thomas
In the United States district court
of Connecticut. in which the jurist
held that casual profits arc not In
come"
: In a lengthy decision the court. after
citing case after case and decision after
decision, said:
THE court appreciates that it is al
ways an exceedingly grave and delicate
duty to decide upon the constituuonality
of an act of the United States
10 discharge Of that duty as
see it. it follows that the word incomes.
in the sixteenth amendment should
not and can not be SO construed as 70
include property other than income, even
II such property is described as income
by an act of Congress-. as such a con-
struction permits Congress to nullify the
provisions of the second section OF arti-
Gle 1 of the Constitution. that direct
taxes shall be apportioned."
- The case in question rested on wnetner
the difference between the purchase ana
sale price of certain bonds was income.
the transaction netting the party there
to a profit"
An appeal was taken. which. in the
opinion sustained by the Supreme Court
Of the United States. will mean perhaps
have included all income in income.
Local Bankers Honored.
John S. Drum, president of the
American Bankers Association. has
just named the committees of that
organisa ton. and has honored two
local bankers with important ap-
pointments-
Henry ii. Mckee, president of the
National Capital Bank. has been
named oil both the educational and
administrative committees, while
George o. Watson. president OF the
Liberty National Bank, Is slated on
rrfel0f ix-o 4
one of his duties being to keep close
observance on all national legislation
affecting directly or indirectly the bank
iag business
- Mr. Watson is also a member OF
the executive committee of the asso-
Gation representing the District Of
Columbia
incidentally, r. N. Harper. chairman
Of the District Bankers Association
executive committee having charge
of the recent American Rankers 40"
ISOLATION convention in this city. an
ounces fnal settlement and auditing
II the accounts for the convention.
with . more moderate assessment on
The banks than was anticipated.
Issues $4,000 New Stock.
The Anacostia Bank of Anacoetia
has announced that II will issue $2s.-
600 additional stock January |. oner-
ing it at par to present stockholders
blus from undivided profits
The authorized capital stock OF the
hank is $780, 900. hut only $4,000 was
issued when it started in business
Under the presidency of Maurice
Otterback the institution has pros
pered highly, and it now boasts OF
deposits of about 100000 and re-
sources after January /. 1921. Of over
$4,000.
A Wall street Pointer.
j. F. Cronin. with Raymond. Pyn-
ohon & Co., a leading Wall street
house. has this to say:
Securities selling at such unprece-
dentedly attractive low levels are 50
numerous that the investor DESTROYS
Of placing his money TO the best adj
vantage is bewiidered.
His mind runs back and forth with
uncertainty from the rails to the in
dustrials. with the result that in many
instances he does nothing. To people
OF that description. j commend pc
uusal of the following from the Review
of the Railroad Situation for 1920, by
the chairman of the Association OF
Hallway Executives: Moved. with a
ieteriorated plant, under disturbed la
Sor and business conditions. the larg-
rat volume OF traffic ever known in q
Jingle year. with the highest efficiency
yet achieved. and with q minimum adj
'iition to the value Of the property on
-
through rates. The railroad compa-
lies have manufactured increased
transportation capacity. not out of
Jew cars and locomotives, but out of
increased efficiency. If this enlarged
capacity had to be produced by new
cars and locomotives 1t would have
required the expenditure of approxi-
HateIy 81. 900. 000. 900.
"Refiection on this should discour.
age bears from selling the sound rails.
particularly when 1t is considered a
certainty that operating expenses
henceforth will show gradual but
steady decrease. Comparative earn
ings for a while will be poor and may
result in a slightly lower basis on
which to purchase stocks and bonds
Of the rails, secured as to principal,
dividends and interest. which should ap-
peal to conservative investors
Better Money CoDditieAs.
James 8. Alexander. a director Of
he New York Federal Reserve Bank
declares that business men are justi-
led in feeling confident that the
ioney situation in the United States
1921 will be a very different mat
r from what 1t was in 1920.
With our credit regaining its full
hcency, with prices going down,
18th liquidation in process and with
he volume Of business on lower
evels, there is not the economic de-.
nand for the present volume of credit
nd therefore it's contraction to a true
,arity with current conditions is de-
.,ired"
pASSTS TIC nTUYnENn