Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-04-26
'CANNOTBE KNOWNNOW
Control of Stock of Local Street
Railway Company.
NO CERTAINTY IN OUTLOOK
Rumor Regarding Secretary Loeb of
Long Standing.
DISSOLUTION OF VOTING TRUST
Struggle for the Control Of the Cor
poration is Predicted-What
is Proposed.
DISSOLUTION OF VOTING TRUST

People who own or deal in the securities
of the Washington Railway and Electric
Company, as well as those who are inter-
ested in public utility corporations in the
District of Columbia, have discussed for
several months past what would be the
outcome when the voting trust is dissolved
and the stockholders once more regain the
control of that property and The Star has
printed several stories discussing the mat
ter, and also the rumor that Mr.. William
Loeb was to be president of the company
under reorganization. There is naturally
no certainty in the outlook for the very
obvious reason that it cannot be known
now with any definiteness where the con-
troll of the stock will be by that time. OF
course, the holders of the preferred stock
are known. as that is a dividendpaying
curity, and it is necessary for the names
of the owners of the shares to be in the
possession of the officers of the company
so that the dividend checks can be made
out every six months. There are of the
preferred stock $1,000 shares, of the par
value of 500, and of the common STOCK
$1,000 shares, of the par value of 500.
The latter stock forms the doubtful and
uncertain element in the situation, as owing
to the fact that it pays dividend there
| is no object in having the certificates trans
ferred to the name of the owners. The con-
sequence is the real ownership of this stock
is more or less a matter of conjecture. 1t
has been matter of common talk in finan-
cial circles for weeks that the activity in
the common stock was due to efforts that
were and are being made to get control or
additional holdings of as large blocks as
possible. AS this stock is quoted as half the
market price of the preferred it is plain
that one wishing to secure any authority in
the company that is conferred by the voting
power of stakeholder could do so with less
money by buying the common stock in
stead of the preferred.
Effect of Decline
After the recent decline in the general
stock market which caused sympathetic
movement in the local stock market, there
was actually no buying demand for any of
the securities on the list. One of the bro
kers who has been recognized as the leading
broker in the securities of this company on
the local exchange began buying the COM
mon stock. He presented the anomaly of
being the only buyer, practically, on the
market to want anything on the list, and
all he wanted was the common stock of the
Washington Railway and Electric Com
pany, the only security of that corporation
that was not yielding return.
The result of this buying was that con-
siderable stock came out at the prices bid,
but not as much as the general state of the
market and the fact that it was not a dvid-
end-paying security might lead one to sup
pose. AT any rate the decline in the stock,
which took place in connection with the
general slump in the stock market, was re-
gained in the course of a few days, and at
this time the common stock is about on the
level of 40, only about four points behind
the best figure ever reached in the height
of the most speculative movement known
in the history Of this stock.
According to the current gossip in finan-
cial circles at that time-and there has been
no change in the situation in the past few
days-this buying done in the interests
of those who hoped to secure the control
of the road when the stock passed from the
hands of the voting trustees, in June next, |
and restored to the stockholders. The dis |
solution of the voting trust in June is not |
to be followed by an Immediate reorganiZa- |
ton of the company, if the general idea on |
this subject is carried out. The officers of |
the company are elected In January of each |
year, for a year, and it is supposed no |
actual change in the personnel of the man. |
agement will be made until the time for |
holding the annual election the first of next |
year.