Evening star. [volume] (Washington, D.C.) 1854-1972, 1922-04-05
LOCAL SECURITIES
. ARE FIRMLY HELD
Light Trading-Chesapeake
and Potomac Telephone
to Issue Stock.
BY 1. A. FLEMING.

Traders in local securities took an
other days rest today. after their
activity of Tuesday. Buying orders
were plentiful enough, but the limits
had been made a little too low, ana
holders would not grant any conces-
sions.
The result was that the making OF
quotations proceeded without muSh
Interruption in the bond seenlon hei fne
only transactions in this group osins
in Potomac Consolidated u.s. Which
Were steady a. SO.
In the stock list business was even
lighter than in the bond section. Two
quotation lots of Commercial Natlona.
Bank shares sold at 1871. an aoVahcs
of points from recent bids, ana
shares of the Capital Traction Com
pany brought 95. 4 .tte Lanstoh az
77L, completed the restricted record
of the session.
Heads Executive Committee.
Michael Keane, a director of the
Merchants Bank and Trust Company,
was elected yesterday at a meeting OF
the full board as chairman of the
executive committee of the bank.
Scores of large baskets of flowers.
bouquets and few set pieces, tnat
have decorated the Merchants Bank
and Trust Company office, the gift OF
friends of the institution, were TINS
morning sent to the various hospitals
of the city by order of p A. Drury'
president.
There were enough to go around 50
that. all the hospitals of the city re-
ceived a share of the flowers
Will Issue New stock.
The Chesapeake and Potomac Tele-
phone Company made application
yesterday to the public service COM
mission of Maryland to issue s5,ooo.-
600 per cent cumulative preferred
stock.
1t is said that this is the first step
in a plan to expend some sl5,ooo'ooo
in the development of the company
plant in the District and elsewhere.
Commissions for the sale OF the STOCK
are not to exceed , per cent ana the
total expenses of bringing 1t out not
more than per cent OF the Falue VI
the added issue.
A T.. Berry. president of the COM
pany. states that it is the present IN
tention to offer the new shares TO
telephone subscribers.
Much of the new capital will be eX-
pended in the introduction of auto
matte telephones.
An amendment to the company's
charter authorized the issue of s12.-
100000 preferred shares
AT the present time the company
has no preferred stock. the issue of
common being s15,000,000. The amend
ment also provides for s2.500,000 new
common stock. OF course the ap-
prevail of the Maryland commission
capitalization.
Reserve Bank Profits.
Total earning assets of various fed
be little. if any, money available for
the government in franchise tax from
operations this calendar year.
A year ago total earning assets were
s2,e13.1S3,00 and the discount rate
for commercial paper was PEI cent.
On government paper it was lower.
and. of course, rate on inTeStner IS
held varied. But assuming a fiat rate
of per cent on all earning assets,
gross earnings would have been $780,
7909S0
Present rate on war and commercial
paper is Az per cent, and investments
show about the same return. Gross
earning IS. on present assets should be
remain unchanged and the interest
rate drop to per cent. gross earn
ings for this year would be s45.-
1000
Evidently officials of different re-
serve banks have varying ideas about
earnings for the current year. For
instance. New York so far has set
aside a reserve of S44S.000 for fran
ChlSe tax. On the other hand, Chi
cago, which has second largest VOL
ume of earning assets. has so far
this year reserved nothing for fran
chise tax. Atlanta has less than one
third the earning assets of Chicago,
but has set aside s413.000 for tax.
Four banks. Cleveland, Chicago.
Dallas and San Francisco. have not
reserved anything for franchise tax.
The other eight combined have ST.
$4,000. Should this rate prove to be
accurate, franchise tax for all banks
for this calendar year should be
about sS,000,000.
Should there be general revival
of business. earnings would be great
1y increased. On the other hand, if
loans and earning assets continue to
shrink and discount rates decline. the
above figures may prove too high
Wall Street Journal
Daily Bank ClearinEs.
1922 1921
New York ........ 1913, 300. 900 $685. ss5. 1856
Chicago ....-....... 102, 500. 900 So 522 OO6
Boston .----........ ~. 100000 As, 96T So