Evening star., 1924-04-08
EXCHANGE NOTING
v. R. T. ACTIVITY
Developments of Issue Dis
cuSsed-LocaI Banks
Gain Deposits.

Recent activity of Washington
| Railway and Electric per cent pre-
ferred stock on the Washington Stock
Exchange has focused the attention Of
local investors on this issue and is
causing considerab BILE discussion in
financial circles. There is very lit
tie element of speculation in this
stock. since it is limited to the div!-
dend or 80 share, cumulative, ire
SpectIye OF the earnings Of the com
pany. The stock has. therefore. al
ways been regarded as a strictly in
veStment security. From this stand
point. however, the stock is attrac-
tive to the investor who desires Il
higher return than is to be found in
sh-grade bond and who at the
same time desires to lean toward the
conservative side.
Reasons for Confidence.
While the stock pays only ) per
cent on its par value of s100, the
yield. it is claimed. is considerable in
excess of this amount to the pur
chaser who buys it around the pres
ent market levels of from "A to 30
At 70 the stock pays a 6.66 per cent
return on the money invested
Moreover, when il is remembered
that this. stock is exempt from the
District of Columbia intangible tax
of = of ! per cent, it makes the yield
equivalent to 7.16 per cent if the
money were invested in Il bond Or
the stock of a foreign corporation.
The income from the stock is also
! exempt from the normal federal in
come tax which for individuals with
incomes IN excess Of Sc, 200 year
amelnts to per cent. For such an
Individual the WELD on this stock is
IN excess Of 80 per cent That is,
Inc individual would have TO pur-
chase a bond yielding $50 per cent
10 derive ii net income equivalent to
that yielded by this stock at present
prices.
Other Phases Noted.
From a security standpoint, It is
ueciared' the stock is well fortified
| since IT has back of il the earnings
OF the Potomac Electric Power Com
pany which has for number of years
enjoyed prosperity Since the Wash
ington Railway and Electric Company
| o"hs the entire capital stock of the
ia,sa ipo""r company' every dollar of the
latter company is applicable to the
securities of the Washington Railway
and Electric Company.
Inc valuation placed on these two
properties by the Public Utilities
commission is in excess of $4,000 900
ana 1t is argued that the dividend OF
per cent on the $500. 900 of prefer
RED stock is secure even in the event
OF severe slump in the earnings of
both companies.
Banks Gain in Deposits.
The Washington Loan and Trust
SoIn npany IS showing gain in de
posits on March 81 1924, of sS110. .305. .oS
over December 81 last This is sIo0.-
ooo in excess of the previously report
ed gain.
The Union Trust Company shows a
gain OF s229.716.20, which brings its
a u
last
Tonight r. Gordon Finney will con
duct review of subjects which the
elementary class. American Institute
| OF Banking. has covered this year in
preparation for the examination
of this month
On Wednesday night Raymond E.
Dickey will lecture on Negotiable
Instruments" and on the following
night F. j. Donohue will address the
senior class on Stocks and Bonds"
Carl " Starkloff will conduct a
credits review on Friday night
Stock of the Riggs National Bank
dropped points to 2SS on a sale of
ten shares on the local board this
morning. With this exception. trad
ing was featureless, but well diversi-
fled.
Quotations on Other Issues.
Commercial National Bank was firm
but unchanged at 141, with District
selling at $50. Lanston sold at 12i.
and Mergenthaler was slightly higher
at 1928 and 153. National Mortgage
and Investment preferred was un-
changed at S12 and Railway preferred
sold at -. Capital Traction stock
brought s5i2. Bonds were quiet and
unchanged.
The Federal Club was the
host to other bank clubs of Washing
ton at a lecture delivered by DR..
Hitchcock of the Smithsonian Insti-
tuition at the American Institute OF
Banking rooms in the New Masonic
Temple last night. DR.. Hitchcock
talked on his recent tour through
Bolivia. Ecuador and Peru. and illus
trated his address with pictures he
took throughout his trip. Dancing