The times. [volume] (Washington [D.C.]) 1897-1901, 1900-11-18

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Rumors of Insurance Consolidation
-WnShington Traction Declining.
The local stock market during the past
few days has followed that in New York
approximately. There was tendency to
react early in the week, and on Friday and
yesterday a recovery began. Business mas
been fairly large. but to certain extent
the great interest in the New York boom
has diverted attention from the local field.
Investment and speculation in nome Sc
curities usually becomes active few weeks
behind a revival in New York for this rea-
son. The case may be cited OF local
speculator who buys heavily in stocks at
times. who, during the past week. sold out
1. 600 shares OF Capital Traction at about
the price he paid for it several months ago.
because he wished to speculate In tne
steel stocks and make money faster. He
will probably get back into Washington Sc
curities later in the season, perhaps with
more money and perhaps with less.
1t is not to be inferred that there Is any
lack Of money for investment in Street
at n S@>AN ~
terday, in discussing this matter:
There is more money seeking investment
since the election than l ever saw before
in Washington Some of this will go to
New York and a portion will go into real
estate, but / am confident that the demand
for good local securities. both bonds and
stocks, will be confident and important.
There will be more money than invest
ments. There will be scramble for OPP
pntn ha
lower than at any time heretofore, in my
opinion"
The events of the week In local stocks
were the sale of Capital Traction above
alluded to and the advance in Mergen-
thaler to 1874 IL yesterday, making the
gain for the week in this stock IL points.
As result of the large sale OF Traction
stock and Of an apparent Willingness on
the part OF some prominent holders TO
see the price go off this stock is frac-
tionally lower than it was week ago,
yesterdays sales having been made at
lO3 Is, as compared with 103 1-2 on Sat
urday, November 10.
Much interest was exhibited on the ex-
change and in F Street in the large
transaction in Traction. AS has been
stated, there is no longer any mystery
as to the seller Of the stock. 1t is said
on very good authority that the purchaser
represented the Big Three in Capital Trac-
ton, SO that their holdings of the stock
are appreciably stronger now than
week ago One or two other fair-sized
blocks of the stock are understood to have
been absorbed by them. This Is interest
ing in connection with the fact that the
price does not advance. The theory held
by some that the insiders wish to &C
cumulate in preparation for a good ad-
vance later is strengthened by the cir
cumstanceS.
Dealings in Mergenthaler have been
heavy, and the tendency to advance has
been apparent. Large holders of the stock
have been buyers. Yesterdays purchases
aggregated nearly 200 shares Of value
of s37 .oOO the price advancing steadily
from 1893 to 1874, at which figure the largest
business occurred. One share was bought
after the call at 1874 IL. Predictions that
the price will reach 2CO in the near fu-
turc are numerous. They are based on
excellent reports of increasing business
and profits.
The insurance companies are paying
their usual dividends this winter despite
the fact that many OF them are known
not to be making any money out OF the
insurance business. They have good sur
pIuses left over from the time when there
were not so many local concerns. and
when rates were higher and fire losses
smaller ana these SURPRISES are invested
SO well that the dividends can be contln-
ued II it were not for the SURPRISES it
is probable that some companies could
hardly show running expenses in their
insurance profits. This is not insurance
business but money lending 1t is not
an economical way to lend money. for 1t
PAYS salaries to forces of office employees
whose work brings in no return.
There has been much talk and perhaps
some serious conference over the propo-
sition to consolidate some of these COM
panies 1t is understood that the new
Colonial Company would like to absorb
one or more of the other concerns in con-
nection with its proposed increase of cap
ital. 1t cannot be learned that much prog
ress has been made. The difficulty al
ways in the way Of such plans heretofore
has been that none of The officers has
been willing to give way for the sake OF
having their salaries Topped off. In each
proposed consolidation there have been as
many applicants for the position of presi-
dent as there have been companies in
volved and as many secretaries.
The way to effect economies by CONSOLE
dation would be to make one office force
do the work that two or three had done
before This would be easy as far as the
amount of work is concerned. unquestion-
ably 1t is also probable that the capital
stock of the companies joining hands
should be reduced. II three 100000 COM
panies could be consolidated with S2OO,O0O
capital and one office force there would
be the probability of big earnings imme-
diately.
The list of the thirteen local insurance
stocks has been devoid of interest on the
local exchange during the past week. No
transactions have occurred in the stocks
and the bid and asked prices remain prac-
tically unchanged. The bid on Riggs has
advanced from I SIS to rs. The bid on
Commercial has advanced from to IL. |
A bid OF 10 for Colonial week ago has
disappeared and the asking price has de-
clined from 121 to us.
The advances in the bank stock prices |
continue. The bid on Bank of Washing
ton has increased S. share to 800 in |
the past week. The bid on Central yes
terday was 200. showing another advance |
of points. Farmers and Mechanics ad- |
vanced from 210 bid to 22O. Second Ma |
tional from 100 to 1853. and Columbia from |
1876 to 1866
The toboggan slide of Washington Trac-
tion and Electric IL per cent bonds con- !
tinues each week. There was a sale Of |
s.. 600 yesterday at 81 and after that the |
offering price declined to 81 "a. and no |
better than 81 was bid. Nothing new de- |
veloped regarding the company or its |
bonds except that there Is talk of active |
work on the consolidation plans being |
taken up now. after the election.