Evening star., 1899-01-28
METROPOLITAN STOCK
The Advance in Market Price Exciting
Interest In Financial Circles
Statement as to Inten-
Among Them Governing Sales.

The prevailing interest which borders
closely on positive excitement, in financial
circles over the remarkable advance re-
Gently noted in the market price OF the
stock of the Metropolitan Railroad Com
pany, shows no sign Of abatement, and in
counting rooms and brokers' Offices specu-
lation is rife over the cause of the condi-
ton. Various views are advanced, but no
positive knowledge of the reason is shown
in any quarter.
1t can be authoritatively stated, however
that the chances for the control of the
company passing out of the hands of those
who now possess it is remote in the ex-
treme and it can be also authoritative1y
stated that no matter how high a figure is
offered for the stock those who make the
offer will not be able to secure simply a
sufficient number Of shares to give them
such control, but Will be required to pur
chase almost the entire amount of stock.
The explanation of this is simple. Three
or four weeks ago financial gossip was con-
centrated on the interesting rumor that a
strong New York syndicate contemplated
purchasing the controlling interests in three
big local corpOrations-the Washington
GaSllght Company, the United States Elec-
tric Lighting Company and the Metropoh-
tan Railroad Company The assertions to
this effect became SO positive that Pres
dent Robert Weaver addressed a letter to
the stockholders of the Metropolitan COM
should dispose of his holdings unless all
did. This letter did not, as has been stated,
mention any figure at which stock should
be sold, although it has been alleged that
500 was fixed the knock-down price per
share. No figure whatever was mentioned.
All Share Alike.
It is well known that the control of the
Metropolitan is centered in a very limited
number of shareholders, but the agreement
was not confined to these. Every stock
holder was given an opportunity to sign it,
and most of them did. President Weaver's
policy in giving all the opportunity to pro-
tect themselves was inspired by expert
ence he is said to have once had himself.
Those familiar with the history of street
railroad selling in Washington will remem-
Der the sale of the controlling interest in
the Belt road to the Philadelphia syndicate.
The holders of the majority stock who were
fortunate enough to be among the chosen
few secured big price for their holdings
The minority stockholders were eventually
subjected to heavy losses by the subsequent
fall in the price of the stock.
Mr.. Weaver, it is understood, suffered to
the tune of about $4,000 in this transaction
Consequently he was determined in the
present instance TO give every stOckholder
of the Metropolitan company, in case of a
sale. an equal chance with every other
stockholder, big and little alike and the
agreement now in his possession contains
a very formidable list of names of both
the large and small holders.
The stock which has figured in the recent
sales is limited in its quantity. Some of il
was sold TO Baltimore parties. then sold
back again to local persons and then sold
again to outsiders. Not more than $50
shares, it is stated, have been thus handled
and the books of the company show, it is
understood, fewer transfers of stock in the
last six months than there were in the cor
responding foregoing period last year.
The rise in the stock has been attributed
IN some quarters to the alleged fact that
the earnings of the road are far in advance
of all former expectations and that the
high prices have been reached by persons
desirous of permanent investments. 1t is
true that when the Capital Traction Com
pany was compelled to use horses on its
main line, by reason of the destruction of
its power house, the receipts of the Met
ropolitan very materially increased, but
when rapid transit was restored on the
avenue much of the traffic returned to the
Traction company. This necessitated re-
duction of the number of extra cars on the
Metropolitan.
Equipment Of Other Roads.
As the other roads paralleling the Metro
politan are soon to be equipped with under
ground electric systems, it is only natural
to expect that they, too, will considerably
draw traffic from the Metropolitan Hence
the belief that the high prices prevalent
are based on the grounds above mentioned
does not seem to be well founded.
Ii is still impossible to ascertain what the
present activity in the stock means. unless
1t is the purpose of those desiring control
of the road to put it so high that holders of
a majority of it may be tempted to dis
pose Of their shares. Representatives of
this majority, however, declare, it can be
authoritatively stated, that price will
tempt them unless all other stockholders
who have signed the agreement are given
the same amount for their shares. 1t can
be also stated that nearly the entire issue
of the company's bonds convertible and
otherwise. and the two issues of certificates
of Indebtedness, are held by the stockhold-
ers entering into the agreement in question.