The daily morning journal and courier., 1900-01-30
LOCAL INVESTMENT NOTES.

|
 LOCAL INVESTMENT NOTES. | Concerning the Chesapeake X Poto.
 mac Telephone companys a company
 which New Haven has special inter
 est in, as 1t was formed in part by New
 Haven men, among whom was the late
 Herrick P. Frost, the United States | Investor the well known and able weekly financial publication, has an ar 1 ticle of interest in it's current number large part of the stock of this com pany was at one time owned in New
 Haven and the holdings here at the present time, although much less than formerly, are still considerable. The
 stock of the company, which was quot ed at 60 or thereabout two years ago,
 ran up to about 80 last summer and
 has fallen to 50 or 62. It is still how ever, paying per cent. dividends, to which amount 1t rose year or more ago after having paid ? per cent. per annum for some time. The cause of the
 recent drop and the status of the com pany are thus spoken of by the Inven- tor In response to an enquirer:
 This company was organized in 1883 to operate Bell telephone patents In the District of Columbia, Baltimore, Md, Wilmington, Del the states of Mary land and West Virginia, and at present it has exclusive control of the telephone
 business in Washington city, Maryland
 rf,,to Tha roY Y,i
 tai stock is $2,650,000, par value of
 shares $1OO, upon which regular divi- dends at the rate of per cent. per an- mum are paid. payable per cent. quar-
 terly. It is claimed they are earning more, and that the dividends In future
 will be increased There is bonded debt of $500,0O0, out of an authorized issue of $600,0O0. These bonds were is- sued to meet the expense of putting the wires under ground in the city of Wash ington, as required by an act of con-
 gress. The company has many miles of underground conduits here and has a splendidly equipped plant. The last sales of the stock, made this week, were at prices ranging from $60 to 62 per share. At this price, many conserva- tive investors consider the stock very good investment. The stock sells so low at present because of some uncer- tainty as to future rates to be charged, and the possibility of competition which is threatened (though not seri- ously, thinl) By bill pending in con gress to charter another company here. Congress has absolute control of the streets and avenues of the District of Columbia, and can compel the com pany to lay it's wires as congress may direct. Congress also claims the right to regulate the rate, and at last ses- sion, passed bill compelling the com pany to furnish the ordinary private telephone for $50 per annum, whereas $S0 is the existing rate charged. The case has been heard, and Judge Bar nard will hand down the decision very soon, and no matter which way he de- lcides the case will probably be taken to the Supreme court of the United States. This state of things is partly responsible for the low price of its tsock. At the same time, it Is gener- ally believed that at the lower rate the company VIII do much larger busi- ness, and can make handsome profits thereon. If ethe, power of congress to regulate the rates is sustained by our courts, then it is pretty certain that no charter to competing company will be granted. Even if the courts decide that the company has power to fix rates, I do not believe the new com- pany will be chartered.
 My individual opinion is that at the present market price of the stock about $62, it is a good purchase. The stock sold as high as $75 during last year, and the present is about the lowest price"