The Washington herald., 1907-05-26
GAS DEAL Is SIGHTED
Brokers Suspect Move to Re-
tire Bonds for Stock.
SPECIAL INTERESTS BUYING
Insiders Believed to he Anticipating
Plan of Local Concerns to LiIui-
date Indebtedness with New ShaFes.
Comes Under Provision of Special
Laws-Must Publish Conditions.

Recent activity in the stock Of the
Washington Gaslight Company has
given occasion for many rumors con-
cerning what that corporation may have
in store in the way of a financial move
To benefit its shareholders. II Is now
apparent that interests well supplied with
money are buying the stock, even at
higher figures than have prevailed for
many months The fact that the price
mounts upward. some times two points
a day. does not in the least deter the
brokers who are behind the movement,
and they quietly take in the stock as Il
is offered. vouchsafing no explanation for
their action beyond the expression that
they believe it a good thing to buy.
Another fact thought to have an inn
portant bearing upon the situation is
that according 10 a well-circulated re-
port, the directors Of the Georgetown Gas
light Company have filed with the Su-
preme Court of the District a statement
OF its resources. and has made applica-
ton for permission, under the judgment
Of the court. 10 issue additional stock,
according 10 the terms Of the law enacted
June 6, 1896 BY the terms Of this law
the court is empowered to allow the issue
OF stock based upon the aggregate amount
Of resources.
Law Permits Issue.
This law allows the Washington Gas
light Company to issue stock sufficient 70
provide for the conversion OF It's out
standing certificates Of indebtedness into
such stock. 1t is stated TO be a part Of
the programme, If the court decides In IA
vor Of allowing the Georgetown company
TO issue additional stock. to file "a similar
statement and application for the Wash
ington company and obtain permission 10
issue stock as provided in the law refer
red 10.
A fact which seems to lend credence TO
this view is that while the capital stock
Of the Washington company is rapidly go
ing up In price under the impetus Of
strong buying on the local stock ex-
change. the bonds of the company and
the certificates are gradually falling of
in price.
II is argued by hnauCiers that this
movement in the bonds certificates. and
stock shows that the management is pre-
pairing something in the way Of a finan-
cial move that will retire the certificates
and possibly the bonds replacing both
with a new issue Of stock II is stated
that by initiating the price Of the stock
and decreasing that Of the bonds II would
bring The basis OF exchange 20 FL point
where il would be very profitable to in
side holders who might be in position 90
take over large blocks Of the new stock
IL is argued that local investors would be
prepared by the upward trend in the price
Of the stock to buy IL largely and thus
raise it to pretty high figures.
Brokers Have Explanation.
The bcst-informed brokers on the stock
exchange. and several bankers. whose
views have been sought in this Conuec-
tion. are practically agreed that this is
the probable explanation Of the move
ment which has already attracted wide
attention.
One broker. in expressing his views yes
terday. said he did not believe the COM
pany contemplated redeeming the ccrtff-
Gates in cash, which. he said. was the
only course 10 pursue. except that Of con-
verting them into stock He declared that
II it should become known that the com
pany had any notion OF paving cash for
its outstanding certificates, they would
Immediately jump 80 each in price on
the contrary. he said, they were con-
stantly going down. as were the bonds.
and he said ne could see nu way out Of
the present movement for the company.
except that suggested.