The times. [volume] (Washington [D.C.]) 1897-1901, 1901-02-03
BANKERS AND BUSINESS MEN.
Local Investment and Speculative
News and Gossip.

BANKERS AND BUSINESS MEN.
Local Investment and Speculative
News and Gossip.
The local business world during the past
week has been particularly Interested in
the annual reports of the street railways
to Congress. These reports are of great
Importance to investors and they were
carefully read by many holders and pros
pective holders of the securities of the
companies. The Capital Traction bonds
and stock and the stocks and bonds of
the various companies controlled by the
Washington Traction. as well as
the syndicate collateral bonds, form to-
gether probably the most important group
of securities on the local market. In an
other column is given a careful analysis
and comparison of the reports of the va
rious companies for the year 1900 and the
previous year, which makes a remarkable
showing in many ways. The Washington
Traction line reports are peculiarly inter
esting at this time because Of the state
ments published recently attempting to
create the impression that these lines
were steadily falling behind in their bust
ness and making lamentable showing
/ generally. 1t will be seen that, on the
contrary, these lines all show large in
creases in earnings during the past year:
that operation deficits are giving way to
profits on operation on the suburban lines.
and small net returns giving way to large
ones on the city divisions.
The strength of the collateral bonds of
| the syndicate during the past two or three
| days seems to indicate that these facts
| have been generally anticipated by bust
| ness men. despite the published state
| ments referred to. An officer of the syn
dictate, who is himself a large holder OF
1 these bonds, said yesterday to a reporter
| for The Times that he is buying more of
| them, rather than selling his present
1 holdings. He stated that the insiders OF
the company are satisfied with its show
ing, though they are. of course, not de-
! lighted with it. The companies have not
| paid as well as they were expected to
! when the syndicate was formed, but these
! people, ac2ording to this officer are will
/ ing to wait for the profits when they come
| in the future.
The Capital Traction showing of 1-2
| per cent earned 'on the stock has been
| the cause, OF the excuse as one wishes
| to consider it, for strong and rapid ad-
| vance in the price OF the stock. IL is
! selling now at the highest price on re-
| cord. with one exception. and the buying
and selling has been very heavy for the
| past week. On Friday the price advanced
full point from los to 106 and the num-
| Der Of shares transferred was $50, repre-
| sentiug $4,000. 1t is said by insiders
that the stock is likely to go to 40 on
! the present bulge One OF the noticeable
| features of the present buying OF the
| stock is the number of transactions that
| take place on buyers options. These op-
cd 80 s,,df
| in bulge in the stock in the Immediate
| future. They represent speculative buy
/ ing by the professional traders, rather
I than investment buying. But the invest
ment purchases have been large also.
| The bank and trust company securities
| have been occupying a far more conspicu-
Gus position in the local market since the
| beginning of the new year than they are
| remembered ever to have taken before IL
| is rare occurrence TO see a transfer In
| bank or trust stocks ordinarily but re
! Gently every days transactions included
! them. and on some days they have been
! among the most active securities on the
! list. The reasons for this have been noted
heretofore in this column, but the unique
activity of the stocks makes rciteration
eXcusable. Business Washington believes
| itself at the beginning of boom Money
! is flooding into the banks for Investment.
| and is being invested. The banks are
| handling more money than at any time
before. The people that use the banks and
| the trust companies appreciate their in
creasing business and buy their securi-
ties as a consequence.
This is especially true Of the trust COM
! panies. The fact seems suddenly to have
suggested itself 10 investors that these
/ companies are doing quite their full share
! Of Elu - ~,
! and much additional business that the
banks cannot handle. while a. yeLstheir
! securities are selling at a much lower
I level. comparatively. Ii has become the
| fashion suddenly to Invest in trust COM
| pany securities. Union Trust and Storage
! stock has been the feature OF this group
! during the past week. Ii was manipulated
at times. and It's highest price was un-
doubtedly not legitimate one but il
seems to have gotten well above par as a
| permanent price. This is scrnowhat re-
| markable perhaps. when the company hns
been in operation such "A short time. and
! can show In reality so little actual bust
ness done up TO the present time. Fridays
! bid price was l06- Washington Loan and
| TrustSwk 170 l-2 bid lex" on Friday. Ma
| tional Safe 1i3 IL bid ''ex," and American
| Security 215 bid.
Mergenthaier Linotype stock has been
| active, but the price has advanced none
| IL is said that orders to sell the stock
continue 10 arrive from outside of the
District. All the known large holders are
supposed to be satisfied with The outlook
and willing to keep their stock. This is
undoubtedly true of the large local owners
| OF Linotype The trust companies con-
tinue friendly to the stock as collateral
which is considered good sign. 1t is not
| difficult TO borrow 100 or more on il at 4
| n a y 4 2 A nd =
time.
The people that sold Washington Gas
stock around 30 and Go are now buying il
again at So. 1t seems to be the impress
sion in F. Street that the decline has gone
far AnaIIHh for he o.