Evening star., 1921-08-17
NEW FINANCING BY
POTOMAC ELECTRIC
Maturities of Local Public
Utility Companies in Near
Future-Notes.
BY 1. A. FLEMING.

the local public utilities to undertake
needed new financing. The company
has expended considerable sums in ex-
tensions and betterments. and must
continue to make further extensions
IL it is to keep pace with the demands
of the Districts needs.
With 1923 the general mortgage
per cent bonds mature and Will nave
to be refunded. There are $4.69l,O ,O0o
of this issue. and provision will nave
to be made in advance Tor caring 1or
this block of bonds.
With the money market in it's pres
ent condition it might be easier TO
float a refunding issue at this time
than later on. Investment bankers
give their Endorsement to this view.
1t is understood that the directors
will consider the new financing dur
ing the fall or winter Of this year.
Estimates of the amount of the fio-
tation authoriZati tion run from $1,000
600 to SlO.000.000. with probably not
over 100000 as the maximum for
immediate issue.
The success attending the placing
of the s1,20O.00O Washington Gas III
per cent notes encourages the belief
that Washington investors would alb
Sorb the Offering at a satisfactory in
tereSt rate.
Washington public utilities have a
number of maturities within the next
few years
The Potomac Electric Company gem
eral mortgage IS, si.69l.0O0. mature.
100000 general 6s of the Washington
Railway and Electric Company will
be due. also 100000 short-term IS of
the Riggs Realty Company.
In 1925. s75O,000 debenture IS of the
Potomac Electric Company will ma
nrnvtnad
financing of the near future.
In the same year $1,S50,O00 Metro
politan railroad 5s mature. Their
price, around 921. bid. suggests that
Washington Railway and Electric
Company.
In 1929 the first mortgage 5s of the
Potomac Electric Company to the
amount of s1,7Oo.ooO mature. after
which few issues will be matured for
cent notes of the Washington Gas
Company, which will be payable in
1926.
Evans on "Nature of Credit"
Joshua Evans. jr.. vice president of
the Riggs National Bank, lectured
before the officers class. School of
Implication of the Sunpiy Corns. Navy
Department. yesterday. on The Ma
ture of Credit and It's Uses.
Lectures in the course now being
delivered by local bank officials are
nimeographed and sent broadcast to
all schools in the service.
Mr.. Evans. in summarizing on his
topic, said:
I'VE have seen that. in the progress
of civilization. there naturally de-
pies which have formed the founda-
tion of a great facilitating power in
the production and exchange of
goods; that this power is called
business DEVELOPMENT which has
made the United States the finest
country in the world in which to
live has been made possible-that
grade movement and return to the
exchange and barter stage; that this
credit. classified as to its uses. may be
termed individual or personal. mer-
vestment or capital and public: that
banks, as the largest dealers in
credit. become machines OF exchange
and the great distributors of credit i:
through the use of credit instruments.
such as checks. drafts. promissory
notes, bills of exchange, bank cur
rency and acceptance credits: that of
discounts" the short term obligations
held by the bank: are. the most inn
portant, as they give rise in most in
stances to Increased deposits. and.
tHe available 1un0S Tor
checking purposes are largely de-
pendent upon the volume of loans
and discounts
"In fact deposits and loans are in
terdependent. marked rise or fall
in one being reflected in a material
increase or decrease in the other as
the case may be: and. finally, that
upon good and sound bank loans
much of the happiness of mankind
is dependent. Ence bad loans jeop-
rdI 70 OF nf -
funds and frequently cause losses to
depositors as well as to stockholders
Cnsound loans. even though good,
often give rise to imitation. with a
consequent abnormal rise in prices,
thus imposing a hardship upon the
community at large"
Local Securities Steady.
> There was very little change in the
matter OF prices in the stocks or bonds
; of local corporations traded in on to-
days session of the local stock ex-
change.
Capital Traction shares sold rather
freely at s6. while Railway preferred was
last previous sale.
ia Continental Trust stock brought 101h
as compared with 100 the last previous
transaction.
trades.
Mergenthaler Dividend Declared.
Directors of the Mergenthaler Limo
type Company have declared the regu-
lar quarterly dividend of 2k per cent
payable September 80 to shareholders
Of record September s.
Personal Mention.
William 3. Orme. secretary of the
Washington Gas Light Company, has
returned from a vacation spent at Re-
: hOboth. Del. George f. WhitweU. as.
sistant secretary of the same company
is leaving today to join his family al
Portland. Me.
w. PASSES Dividend.
The Cuban-American Sugar Com.
!. dend declaration today
National Sugar reduced it's dividend
from $3.50 share to S1.75.
Tax Bill on Liberties.
Changes in taxes on liberty bonds as
proposed In the new tax measure are
as indicated:
Section 1910. The various acts au.
thorizing the issues of liberty bonds
are amended and supplemented as fol.
lows:
-ta) On and after January 1. 1921. 4
per cent and A per cent libert,
bonds shall be exempt from graduated
additional income taxes. Commonly
known as surtaxes. and excess-profits
and war-prof1tS taxes, now or here.
after imposed by the United States
upon the income or profits of indi.
viduals. partnerships. corporations. OF
associations. in respect to the inter.
est on aggregate principal amounts
thereof as follows:
Until the expiration of two years
after the date of the termination OF
the war between the United States