Evening star., 1934-01-15
BROKERAGE ROOMS
ARECROWDED HERE
Both Spectators and Invest.
0rS Much Interested in
Monetary News.
BY EDWARD C. STONE.

ing room only" signs out when the TICK
ers started off today. The Govern
ments proposal to devalue the dollar
to around the 60-cent level, OF course,
stirred interest among both spectators
and investors
Concern over the Interpretation of
the new move and its probable reac-
ton on stocks and bonds caused the
rush to the local brokerage houses. The
stock market opened higher, steels and
the rails being the leaders. How much
of the strength was due to monetary
causes could not be stated, as increased
orders for steel have also been reported
during the past few days
higher, indicating favorable interpre-
tation to the newest move in national
finance. Many traders held that the
Presidents proposed step would do
away with good deal of monetary
uncertainty that has been hanging over
the security markets.
Despite many varied opinions. the
market was more active, prices were
higher and the board room gossipS had
plenty to talk about All market OBJ
servers are agreed on one point, that
today's financial news was the most
important since abandonment OF the
write many columns in an effort to ex-
plain the probable next move in market
quotations.
Phone Checks Received.
Thousands of dividend checks from
the American Telephone & Telephone
Co., covering the last quarter OF 1888,
were received here in the morning mail.
This is the last time that the Govern
10, will tNn
checks. All dividends declared since
The beginning of 1884 will be free from
such deductions. The payment made
roday was declared several weeks ago.
Along with the checks came state
nent frcm President Walter S. Clifford.
While final figures are not available
Tor the year 1893, he said, earnings on
American Telephone stock were ap-
2roXimately $3.50 per share as compared
with $596 per share in the previous
year.
The number of phones in service at
the end of the year was lower than in
1882 Business, however, showed a
marked pickup during the last half of
tile year. President Clifford stated.
Smaller Firms Boost Dividends.
The average dividend rate on 600
common stocks increased in December
from S110 to Sill per share, as COM
pared with an increase from Sl.06 10
21.i0 in November, according to the
monthly compilation prepared by
Moody's Investors Service. While De-
,ember increases we're fairly numerous,
hey were confined to smaller or me-
;iium sized companies and, therefore,
lid not have much effect on the total
amount of dividend payments.
Average yields did not change much
N December according to Moodys.
FOR 200 common stocks the weighted
2verage yield was 38 per cent on De-
.ember 81, compared with 3.9 per cent
:, month ago.
Western Union Telegraph Co, in re-
port to Interstate Commerce Commits
ion, for II months ended November
%, 1888, shows net income of s4,205,346
lfter taxes, charges and depreciation,
equivalent to S402 share on l,O45,5S2
sf1ares of capital stock. This compares
with net loss of S1,398,454 in first IL
months of 1882.
Construction in Sharp Gain.
A strikingly larger volume of con-
Struction in December than in any
month since October, 1881, is reported
oy the F. w. Dodge Corporation. The
increase is attributed partly to the P.
W. A. OrlVe TO move men lIOnl Ieile1
rolls to pay rolls.
struction as well as public construction
:hared in the upturn. The report
-tates that in the 81 States east OF the
Rocky Mountains contracts awarded
Cor building and engineering projects
aggregated S207, 1909, 500. This sum rep
resented % per cent increase over the
November total and was 155 per cent
higher than in December, 1882
Publicly financed contracts during
the last six months of 1888 increased
Il per cent over the second half OF
1882, the report showed. while the flrst
six months of 1888 ran SO per cent be-
hind the like months in 1882.
Col. Ayres Sees Fine 1884 Start.
Col. Leonard P. Ayres' monthly re-
view arrived in the local financial dis
trict today For the first time since
1929 a new year began with general
business activity at higher level than
it was at the beginning of the previous
year and with greater volume OF In
dustrial production.
Public expenditures are responsible
for much Of the improvement" declared
Col. Ayres IA considerable portion OF
the recent advances in wholesale and
retail trade is due to the great farm
bonus payments and to the wage dis
hursementS Of the emergency relief
projects, while industry has felt the
stimulus of the public works activity.
The people furnish the power that
operates the business pump, and they
are eagerly anxious to be back at their
old job of doing it. So far their ac-
complishment has been limited because
= rI,o ~ ioI, of a CT i1Or hoS of
proved wholly successful. The business
pump has two valves one the new in
veStment valve, and the other the profit
valve
The Cleveland banker wants Congress
to find out if the new securities act
S clogging the investment valve and
also see what can be done to improve
operation of the profit valve. At pres
ent. he thinks it's leaking too much.
Today's Trading on Exchange.
Washington Gas Light bonds were
the market leaders on the Washington
Stock Exchange today
Washington Gas IS, 1860, opened with
four 81 900 sales at 103s4, following by
a $500 sale at 1o3 l9' and bySs4.oo0 and
$4,000 transfers at 1882. Washington
Railway g. Electric As came out In
$4,000 sale at a..
In the stock division sales totaling IS
shares were recorded in Potomac Elec-
trio Power 512 per cent preferred stock
at 106 while three more shares sold at
1862. -...-
The strength maintained by many
local bond issues lately has aroused
much favorable comment by members
of the exchange. A glance at the board
shows that there are plenty of bids on
all these bonds but at the same time
very few are being offered. In other
words, holders are not at all anxious
to sell.
Notes in Financial District.
The importance of making dis
tinction between expenditure items and
appropriation items in the proposed
Federal budget is stressed by Henry H.
Heimann, executive manager of the