Evening star., 1921-12-18
BY I. A. FLEMING.

r
The year 1921 will close on the best
bond and stock market that the
Washington Stock Exchange has en-
joyed since the good old days of 1911,
when Washington Railway was on
the way to higher prices and Capital
Traction working to lower levels.
with some sensational trading in
Washington Gas and r. disposition to
advance prices on most securities.
This was in the nature of a local
movement paving the way Nay TO to the the
Securities Company and its later ac-
common stock of the Washington
Railway and Electric Company.
Recollection of that period in local
street railway history will be pleasant
only to those who parted with their
Railway common on the market at
the high prices.
Next to I9I>-13. 1921 has been the
local markets best year of many. The
".at SPECULATIVE movement that fol-
lowed the eXpending of billions dur
'-.."d did not h-in~ a"v
increased business to the local ex-
Cnangc. Tners were nu ..-o> .-s.
save as side issues for Mergenthaler
and lanston, aGd they reflected In
small degree only the betterment.
Washington investors have always
held "a preference lor utility shares
and bonds. capital Traction shares
and Capital Traction bonds being the
When the increasing operative costs
and war wages reduced the utilities
earnings so that reductions in divi-
dends were deemed necessary the
1auod of selling orders broke prices.
although there were many sharehold-
crs who retained their property in the
belief that the market would come
back.
Lower costs, increased earnings and
The ability to pay dividends and In
terest has reinstated the utilities in
the favor of the Washington investor.
The appellate court decision in the
Potomac Electric rate case was like
an elixir to the market Expectation
the confirmation of the decree in
the superior court is strong and is
Lnr OF the hopes of those who Favor
utilities, as the principle upheld is
likely to be of great value to all pub
lie utility corporations in obtaining
rh"sical valuations. and thereon fares
and service charges are based.
All the business in local securities
is not done on the Stock Exchange,
either: the daily sessions are over in
an hour or less, but at the investment
houses orders are being executed all
day.
very large safes Ol utlllly OOHuS dhu
stocks have been made during the
past week over the counter, all issues
of bonds. Also Mergenthaler and Lam
ston have moved with considerable
freedom.
Prices for all bonds are at or near
the high of the year; likewise most of
the stocks are at the top level. nor is
there any chance of an ending of the
movement: for some time. Money is
cheap. and will be invested from now
f~nA tu in
stocks as the feeling of confidence in
conditions increases.
Railroads in the Woods.
Railroads. with few exceptions, are
still 'in the woods" They have come
to the point where they are finding
it necessary to think more about
equipment and maintenance Of way.
For some years the usual provisions
for these necessities have been neg
lected in the desire to make as good
a showing as possible, so that while
gross earnings have shown large de-
good by the neglect Of maintenance.
Only a few railroads look good to
investors, and the majority have much
adjustment in the matter of wages
for lower rates becomes insistent.
All Predictions Realized
Predictions made in this column of
the largest business in years for
Washington have been realized in
every particular. The stores are
crowded. and the selling pace has
since 1919. The banks are crowded.
Unemployment doesn't seem to be as
great. and the prosperity of every line
of business is far above the average
That 1t will continue in January
Is promised by the enormous pay
ments to be made on account of div
idends and interest paid by corpora
tions, plus the very large amount that
will be paid out by the trust COM
panies and savings banks in semi
annual interest.
In this distribution the Potomac
Electric Power Company will place
in circulation some 1896. 900 on ac-
count of interest. and the Capital
Traction Company, with its 100000
be the heaviest in this group.
Washington is going to be abun-
dantly supplied with cash.
The chances for the conference of
the limitation Of armament lasting
much longer are questionable, but
full for good year in 1922, barring
unfavorable developments.
Congregational Action.
Congress, with Christmas recess
on hand, will have another oppor-
spirit-that is. individual members
who go home will, and they will be
in a position to learn the wishes of
their constituents with regard to the
four-power pact and the 5-5-3
naval agreement.
But they are also certain to be re-
minded that the country is not salts
fed with the revenue bill: that
necessary. 1t is said that most of the
members are in a blue funk" at the
views of their clientele. The burden
of taxation is not met in the finai
settlement. as many believe. by big
country would that it should be. but
is passed along in the cost of pro-
duction and with high wages. and
rules and regulations for workmen,
etc, etc, keeps the cost of living
above normal. while the administers
save. and through these savings to
reduce the governments needs OF
funds. in the hope of lessening taxes
"a real hope.
Higher prices. in turn, have halted
business progress and created further
pessimism.
Interesting Rail Facts.
This weeks Baohe Review contains
many interesting statements compil-
statistics for 1920. He gives the fol-
lowing table on income account for
1920.
Revenues from operation. 81. 300. 1sO. .49s
Expenses OF operation. Q, ,S5d I'D ~, M
,,: TaIss ..... Is az 'Sl msG
Net income from operation. ...... 'a7,ssi. .1sz
Deduct back mail-pay included in
operating revenues .......... 5O.OOO,O ,OOO