The times. [volume] (Washington [D.C.]) 1897-1901, 1900-06-10

| thousand shares and the price Is now three
! points or more higher than 1t was n snort
| time ago. The announcement made ex-
| clusively in The Times a day or two ago
| that an extra dividend was likely to be
| declared by the Gas Company explains
much heavy buying of the stock by people
| more or less identified with inside inter-
ests, and it also fully accounts Tor the
advance in price No official announce
ment has been made as to the extra dlVi-
dend, but it may be stated on excellent
authority that it will be declared early
next month and that it will be 81 share
or per cent. The street has been much
interested in the dealings in the stock. 1t
is said that the larger part of the stock
sold has come from the syndicate formed
at the time the deal for the purchase Oh
the company was on foot. 1t is the COM
ment that the syndicate is evidently not
in close touch with the insiders OF the
company or it would not have sold out its
large holdings at the lower level OF
week ago.
Telephone stock has had quick ad-
vance owing to the failure of the bill be-
fore Congress to authorize a new tele-
phone company. 1t is known that impor-
tant interests fought the bill hard, and
the supposition is that they defeated it,
as it had many surprisingly warm friends
in Congress. With the District Supreme
Court on the side of the old company and
Congress not able to pass the bill for the
rival concern, it is not remarkable that
Telephone stock should show much buoy
ancy. The price has advanced 10 points
or more recently from the low level
reached after the introduction of the new
company bill.
Mergenthaler, after its quick and i'm
portant advance of ten points, has reacted
somewhat, on the taking Of profits by
Spectators. 1t shows much strength,
however, and the street generally has
good opinion of it, even after the advance.
The company is earning more money than
ever before, and it is seen that the stories
put out by the bears were entirely without
foundation. As stated some time ago in
this column, the present earnings of the
concern are at the rate of % per cent.
City and Suburban has been strong OF
late on persistent buying. apparently based
on the idea that the syndicate will soon
wish to buy in the minority stock under
the provisions of the bill just passed, and
that 1t will be likely to pay better price
than that recently ruling.
Capital Traction has continued strong at
the advanced price established when the
Capital Traction bill was passed a week
ago. The company is increasing its earn
ings every month, and in addition there is
much talk OF the benefit to be derived by
It from the proposed extensions Of its lines
There is q wealth of speculation over the
probable plans of the Washington Traction
and Electric syndicate for carrying out the
provisions of its consolidation bill just
passed. The Washington and Great Falls
Railway, which was purchased for the pur-
pose, is to be the company which nominally
will acquire all of the other lines OF the
syndicate The bill provides that this COM
pany, in the process Of the consolidation,
may issue SIS 1000, 900 of stock to purchase
the outstanding capital stocks Of all the
other lines, and to exchange for the secur-
tiles OF these lines already held by the syn
dicate. The problem which interests the
street is as to what is TO become OF the
500, 000, 600 bonds and $4,000, 600 stock OF
the present Washington Traction and Elec-
trio Company, The syndicate, In other
words. II would seem that II the Metro
politan and Columbia and City and Subur-
ban ard other stocks held by this company
are to be converted into the new $4,000. COO
stock issue, the only security for the syndi-
Gates $4,000, 0C0 collateral bonds will be
destroyed entirely. And, ON the other
hand, it will be impossible to replace this
bond issue with any first lien bond on the
roads themselves, as the Metropolitan and
Columbia and other first mortgage bonds
are still outstanding. One suggestion Is
that the Washington Traction and Electric
bonds will be called in and cancelled. This
would be comparatively easy matter, per-
haps, as the number OF bonds taken by the
outside public was not large. 1t would re-
quire cash. however. Another suggestion
made by some is that the syndicate does
rot intend to take any steps in the matter
at present, but simply secured the passage
of its bill to quiet any possible opposition
by minority stockholders.