Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-29
ADVENT OF BUYING
MARKET FORECAST
Magazine Sees Five Reasons
for Resumption of Stock
Purchases.
BY EDWARD C. STONE.


and eventually turn the sellers mar
ket" into a buyers market These
potential sources of buying power, as
summarized by the Financial World
are:
l. The usual January reinveStment
demand, it being estimated that nearly
billion dollars in interest and divi-
dends will be disbursed around the
first of the year.
2. Buying by those who sold various
securities to establish tax losses.
3. Buying of corporation executives
and banking interests who are close to
individual situations showing improve
ment.
4. Eventual forced buying by those
who are short" of the market. the
most potent element from the stand
point Of quick price movements, "for
the cowardice of the bear is notorious. -
5. Buying by the gneral public. which
will follow any sustained advance in
sound securities, thereby steadying
prices.
Local Financiers Are Cautious.
Local bankers and brokers are extra
cautious at this time in making pre-
dictions for business and finance in
1880. They agree that the above fac
tors show sound reasoning, but condi-
tons are considered too complicated
right now to permit Of very much
forecasting
One leading local broker said yester-
day that the trouble with the New York
stock market seemed to be bad attack
OF indigestion. He says that the flood
OF new securities put out during the
year is still far from being digested
Another experienced broker asserted
that predictions right now can be of
little real value I'VE must see the
January and February reports" he
said, Ito find out if business is holding
its own, going ahead or slipping. Until
these reports are out, it will be impoS-
sible to judge the trend" he added.
While think business will be little
slow for a short time, I confidently
expect to see revival as Spring dawns
upon us" said a local bank president.
In his opinion one of the remarkable
things about the decline in the stock
market was that there was no crisis
in money, industry and business gener-
ally being found in strong financial po-
sitions.
Rapid Transit Earnings Improve.
The Washington Rapid Transit Co.
reported to the Public Utilities Commits
sion yesterday that total transportation
revenues In November amounted to
e48,712 against $46,375 in November
1928. Other operating revenues were
1858, compared with 1894 a year ago.
Operating expenses required $45, 067,
In comparison with $44. 682 in the same
period last year. After the deduction
OF al expenses the transit company re-
ported total net income for the month
or $S,O14, against 81 1913 in the cor
responding month year ago, or a gain
of 1891.
The Transit company reported total
operating revenues for the first IL
months of this year as $40 566, COM
pared with $47,070 in the similar period
last year. After the deduction of
operating expenses operating revenues
totaled $25,7 06, against a deficit in net
operating income last year in IL months
of 1892.
The company reported that 5,sss. AL
passengers were carried on the buses
In IL months this year. compared with
5,244,416 in the like period in 1928.
Fair Trading on Exchange.
Trading on the Washington Stock
Exchange was fairly active yesterday.
but outstanding features were lacking.
snare lot selling at 74M, and two other
similar lots moving at 7414. Potomac
Electric Power 512 per cent preferred
sold at 104 and closed at 104I2.
Twenty shares of National Savings
d Trust Co. stock changed hands at
SIS, against the last previous sale at
$40. Commercial National Co. preferred
came out at e91a ex-dividend and five
shares of Mergenthaler Linotype sold
ex-dividend at 1864.
A 20-share lot and 5-share lot Of
Peoples Drug Stores preferred changed
hands at 104l2. Merchants Transfer
& Storage preferred appeared ex-
dividend on the board at 9sla for five
shares
In the bond department 81 900 Poto-
mac Electric Power IS sold at 1861.
Washington Gas 6s, series A. sold in
$500, $500 and 5000 transactions at
par and u. After call 5000, $500 and
500 more of these bonds sold at the
same price. The market closed with
$500 Capital Traction SIS selling at 9134.
The local market during the past few
days has been gripped by a holiday
1ull. By the last Of this week, however,
interest and dividend payments are
expected to help start a real January
reinvestment demand for home Sc
curities.
Phone Net Of in November.
Chesapeake & Potomac Telephone
operating revenues for the month Of
November were $714,76S with operating
expenses of $685., 427. Taxes and un-
collectible amounted to s47,254. making
net operating income $1320S7, which
was a decrease of $23,734 over the
same month last year.
For the IL months ending with No
vember, the company's operating rev.
enues amounted to $7,611 $3.50. Operat-
ing expenses during this period were
1851 704, making net operating reve-
nues $4,000 85. Taxes and uncollectible
for IL months period were $542, 989,
making net operating income 81 Asst, 296.
Telephones in Washington increased
1887 during the first IL months of the
year, making 158,747 in service at the
close Of business November 30
Capital expenditures for outside plant
facilities and central office equipment
added TO the system of the Chesapeake
G. Potomac Telephone Co. in Washing
ton during the IL months ended No
vember 80 amounted to $4,775,e91.
WarehOusing Dividend Voted.
The board of directors of the Termi-
nal Refrigerating and Warehousing Cor
poration at meeting Friday declared
the regular seni-annual dividend of 3
per cent on the outstanding stock Of the
company. This means $50 per share
on the par value of the stock of $50
The dividend is payable on December
81 TO stockholders of record December
g.
Bank clearings In Washington for the
week ended December rs totaleo
$20,883,000. against $28.l00,000 for the
week ended December 19. This was q
decline of TOT per cent compared with
the corresponding week year ago. The
figures indicate that holiday business
during the week was not quite up to the
record of the same week in 1928 Clear
1ngs for the country as a whole were
behind the previous week and IL pei
cent under the same week last year