Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-02-23

smaller ones form large company that
will have better standing in the financial
world generally. 1t is realized that the les
son taught by the Baltimore disaster had
better be taken to heart. 1t is further
realized. according to these same authori-
ties. that the day for small companies has
passed. and 1T is confidently believed that a
combination of several of the smaller COM
panies in the District of Columbia would
be for the best interests of all concerned.
Ii was suggested In financial circles today
that such combination would be of ines
timabie benefit to the Potomac company,
which is now making an effort to get ION
its feet again. for under such an arrange
ment II is believed the stock of the Poto-
mac company could be sold to the COM
Dination at very fair figure.
From all indica tions there has been no
great rush today to pay the assessment of
$3.50 per share asked for by the directors
of the Potomac Company In their circular
issued on Saturday.
According to man we'll posted In local
financial matters the general sentiment for
a combination of the smaller companies
meets with much more favor than the et-
tempt several years ago to effect similar
arrangement, and he expressed the belief
that the plans which have yet been only
tentatively discussed will shortly attain
shape and grow into an organization that
will give satisfaction to all of the smaller
stockholders.
A reporter for The Evening Star this
ment from President Armes of the Potomac
Insurance Company, which indicates that
no matter in what manner the affairs of
the Potomac company are finally settled
the policy holders will be absolutely secure
and the stockholders will receive practically
dollar for dollar on their stock investment
President Armes said:
Il would like to have Ii clearly under
stood that no matter I'm what manner the
affairs Of the Potomac Company are finally
settled. every man. woman and child hold
ing policy of insurance in the company
Will be amply and fully protected. We
have sufficient reinsurance reserve to care
for every policy holder to the full extent
and we have an offer from large com
pany to reinsure every dollar of our BUSH
ness.
Our losses in the Baltimore fire we now
find will reach S225,00o. This will take up
our reserve fund of $4,000. and would
encroach on our capital stock, but we have
reinsurance reserve Of $751; 600. which.
after paying the reinsurance premiums re-
CURED for taking care OF our policy holders,
would have sufficient sum to make up
for the sum that would have been with
dra wn from the capital stock.
so 1T can be seen at glance that, even
though the company should have to retire
from business every policy holder and every
stakeholder would be cared for dollar for
dollar.
I'VE sent out our circular advising stock
holders of the necessity for paying
sessment of $3.50 per share in order that
the stockholders might know just the
status of the company and have a full OPP
portunity to come up with the money to put
the company on q solid financial basis
again.
Should we get $4,000 the company will
again be in good shape We have had Of
fers of loans, but these would not benefit
us in the least. What we hoped to do by
making the assessment is to have the loss
fall on the stockholders and thus not inn
pair the stock of the company. These as
sessments could of course. be paid back in
lieu of dividends
Mr. Armes could not say this afternoon
how much had been paid in on the assess
ment made on Saturday. He did. how
ever, have several checks he had received
for this purpose.
1t is the small stockholders that are TO
be feared in such crisis. 1t is realized
that the stock is mona sessable, and that
those who do not pay assessments would
reap the same benefits those who do.
The outcome of the matter is awaited
with unusual interest by the local financial
world; at the same time il Is believed on all
sides that this outcome will be the alb
sorption of the Potomac Company by one
or more of the local companies. In fact. 1t
is known that the directors of the Potomac
Company have an offer for a controlling
interest of the outstanding stock.
The assessment made by the Directors
of the Potomac company on Saturday had
it's effect on the local stock market to-
day. The stock went off one point in the
bidding and three points in the selling
urday % was bid for the stock and il
was held at 3D. Today the stock was Of
fered at 22 as against % on Saturday.
Twenty shares of Capital Traction
brought 1924 on the local exchange to-
day. There was change in Capital
Traction As nor in Washington Railway
As.
There was one trade in Washington Gas
stock, twenty shares bringing 56ts as
against 56k on Saturday.
After the regular call today $4,000 in
Columbia Railway SIS brought 1O5; 1O4 Y
was bid on Saturday.
Mergenthaler remained firm today
There was some little bidding but no
sales.
Mr.. Chas. ]. Bell. president of the Amer
lean Security and Trust Company, who
has been i'll with the grip, was able to be
out today for the first time within a
week