Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-05-13
! GAS STOCK DECLINES
FALLING OFF OF TEN POINTS M
LOCAL EXCHANGE.
Defeat Of the Bill in the House E1cites
Much Interest in Financial
Circles

An echo of the scene in the House yes
terday, when the bill authorizing an In
crease in the stock of the Washington Gas
Company was defeated was heard today
on the Washington Stock Exchange. AS
might be supposed, the interest on the
part of many members of the exchange in
the fate OF this measure was of the live
Hest nature. for ever since the project had
been preached gas stock had been un-
usually active. For the past six months
at least. 1t has been one of the most lively
stocks on the list. and the price has gone
to heights never before attained in its his
tory.
When the exchange convened there was
much good-natured chatting over the fate OF
gas bill. and particular point was given to
some OF the comments. owing to the fact
that number of the members went up to
the House of Representatives. heard the
closing speeches Of the debate and wit
messed the overwhelming defeat Of the bill.
1t can be said that the result was contrary
to all tips" given out There had been
great confidence expressed on the part of
many that the bill would go through.
When this security was reached in the
call, the sales were made both of %
shares each. The first lot went for 74k
and the last for IN The closing price for
gas was therefore nearly ten points under
the bid price Of yesterday.
As a Dividend Producer.
For nearly year past gas stock has been
more or less buoyant on the local market.
The steadiness of this security at 81 or 30
early in the past year was a cause Of more
or less conjecture on the part of investors.
who looked upon gas stock as a dividend
producer of per cent upon a value of so.
There were several explanations floating
about, one being that the period Of one of
the companys usual extra dividends was
approaching.
The price continued, however, to steadily
advance, and on the LIST of July last the
stock was selling for about 60. three times
Its par value. By the LIST of January Of
the present year the stock had advanced to
81. but before that time rumors were
abroad relative to expected legislation
which would permit increase in the cap
ftal stock of the company These reports
grew more definite and the stock continued
to advance steadily. By the beginning OF
February it was quoted at II, which was
the record price. as everything figured
above GO had been. Then the bill which
has just been defeated was introduced in
the House. and in April was reported ia
vorabiy from the District committee. By
the LIST Of March the stock of the company
had advanced on the local exchange to 49,
and at the beginning Of April the quota
lions were 50.
Reaction Comes.
The advance in the early part Of April
was rapid, and large blocks Of stock chang
ed hands, and at the end Of that movement
the record price had been reached Of s6A.
Then a reaction set In and the price reced-
ed to IS, but by the first Of the present
month it had recovered somewhat and was
quoted at 80. Yesterday the bid price was
81.
1t Is not known definitely what course will
be pursued by the advocates Of the defeated
bill Some are Of the opinion that resort
will be had to the section of the code which
permits Incorporated concerns to increase
or decrease their capital stock upon COM
plying with certain conditions. Some how
ever. are inclined to think that there may
be no attempt to carry out the increase of
the capital stock, and that instead the ac-
cumulated earnings may be distributed in
the form of an extra dividend.