Evening star. [volume] (Washington, D.C.) 1854-1972, 1921-01-30
URGE PROTECTION IN WAR
TO ALL ALIEN INVESTMENTS
Americas Immense Purchases of Foreign
Securities and Debt Due United States
Suggests an international Agreement.
BY I. A. FLEMING.

SS>SS~0S0 OH AAASSA IL
BY 1. A. FLEMING.
Germany has just announced her in
tention of restoring all property belong
ing to civilian owners seized during the
war. as the property of aliens. So far
as known. no other state participating
in the war has announced like action or
intent thereto. in the same matter.
Only a day or two ago, and before
this announcement from Germany,
Charles ]. Bell. president of the Ameri-
can Security and Trust Company, called
attention to the fact that the United
States should make some movement look
ing to the establishment of the saHctity
Of private property of aliens during wars
which might develop. He pointed out
that this nation. as the big creditor of
the rest of the world, was buying the
securities, to a large degree, of the
world. in an effort to aid the rehabili-
tation Of other countries, as well as for
the interest return, and that the safety
of these holdings should not be put in
jeopardy through failure to come to an
understanding.
On the list of the New York Stock
Exchange, in the bond section. are quot
ed the securities of Belgium Canada,
city of Bordeaux. city of Christiana.
Copenhagen. Lyons, Marseille. Toxic,
Paris Zurich. Denmark Dominican Re
public, France. Japan. Norway, Cuba
and the United Kingdom. With the
broadening of foreign trade will come
further security offerings on this side.
But this is not ALL Millions of dol
lars of American money have been
invested in pounds, marks, francs. lire
and other foreign moneys. The United
States government is creditor of many
foreign nations for billions of dollars
in the aggregate.
Mr.. Bell contended that so long as
civilian alien owners act within their
rights they should be protected even
in the event of war between the
United States and the nation or ma
tions whose securities they own and
carry.
Properties of German aliens seized
in the United States must have pos
sessed a value many times the value
Of the takings of American property
in Germany, but England also had
larger interests in Germany.
Germany perhaps intends to win the
approval of alien property holders
through the return of seized proper
ties, or may hope for like treatment
from the allies, or even to set a prece-
dent for the future.
On the face of the proposition it
should appeal to investors in inter-
national securities that the stability
and safety of their investments from
seizure would be assured. to a large
degree, with an international agree
ment on the lines indicated.
Morris & Co.
Morris & Co., ore Of the oldest and
best known of the great packing COM
year October 20. 1920. with a profit
Of $4,270,000 as compared with &c.
S45,4 71.94 in 1919. The company in
1919 had a surplus Of $53,227.505 .65
A matter Of $2,900,000 was taken from
the big surplus to pay the expenses
Of administration, interest on bonds
and taxes, insurance, interest on bor-
rowed FUNDS, ETC..
Local Matuities.
Washington utilities will have no re-
funding to do until 1923, at which
time the Washington Railway and
Electric Company will have to pay
or refund 1851 900 general mortgage
Is of the Potomac Electric Company
and 100000 Is of its own immediate
issue.
In 1925 $750,oo0 Potomac Electric
debenture IS will mature, and $780,
900 Metropolitan Railway IS.
Most of the bonds Of the local util-
tiles have years to run, and directors
of these companies are probably con-
graduating themselves that the mar
ket for local utilities will have
greatly improved before they or their
successors are called upon to care
for the obligations.
Scores of corporations would like to
take advantage of the first turn for
end Of the stringency, to care for
their future needs, but these days
they must needs talk long and earn
estly with bank presidents and chair
men of boards of directors to make
g. successful foatatfon.
to Mt tan \ So
bonds that made the Belgian, the
Chemical and the Pennsylvania bond
issues so wonderfully successful, as
many think, reading the stories of
oversubscriptions and speedy closing
OF books on the three big fotations
Of last week.
It is the measure of success attained
in securing the attention of rich and
powerful syndicate to undertake the
distribution of securities
Having secured such a syndicate
they will see to it that the distribu-
ton is wide and satisfactory-they
will oversubscribe.
Mortgage Money.
One hears considerable discussion
among the real estate operators Of
the District anent the difficulty prev
alent in the matter of securing mort
gage money and the difficulties Of the
housing proposition. One hears Of
the opportunities for investors to
render much-needed service, but the
investor himself seems to be seeking
other than real estate security.
K. v. Haymaker, formerly financial
adviser of the. United States Housing
Corporation, read a very interesting
paper at the national housing con-
ferepce in this city on the 28th in
slant
He called attention to the fact that:
"a large amount of money has
heretofore been invested in mort
cages by private investors. Under
when they reach a large sum must
pay such an exorbitant part of their
earnings as taxes that the amount Of
money available from private sources
is constantly decreasing.
''The tendency of life insurance
companies in making investments is
similar to that noted in banking. that
is. the ratio of mortgage investments
has for many years been declining.
The president of the Metropolitan
Life made the statement that in 1875
real estate mortgages comprised 81
per cent Of the assets Of life insur-
ance companies. In 1895 this had de-
clined to 40 and Is now over 3d."
Some insurance companies have re-
Gently adopted policy of making
long time loans on homes with
amortfzed payments.
High credit was given by the
speaker to the building and loan asso,
fitted themselves to needs of the
American people and to have
become a vital factor. with com
bined capital of 60 per cent
greater than the combined capital