Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-01-09
STREET RAILW Us
RELATION OF CONGRESS TO
COMBINING INTERESTS.

-
Chairman Smith of the House District
committee, as stated by him in an inter-
view in yesterdays Star. that there is to
be consolidation of the two street rail-
way systems of the District agrees with
what has been currently talked about in
financial circles in this city for some
weeks past.
1t is not thought, however, by those
who are supposed to be posted in regard
to such matters that such thing is La
BILE to take place in the near future. 1t is
possible, however, owing to the conditions
which may come up in connection with
legislation needed in order to bring the
street railway tracks into the Urion sta
ton plaza that some action may be taken
by Congress relative TO the subject OF
merging these two properties. If any
thing of the sort is done it is expected
that 1t will be of an entirely friendly ma
ture and designed to facilitate such pol
Icy rather than otherwise.
outside of considerations of the course
of legislative action there is nothing IN
the situation as far as the two systems
are concerned to lead to the belief that
any positive effort toward bringing about
union of the two interests Will be at
tempted at an early date. 1t Is held
there Is good deal to be done by the
new management of the Washington Rail
way Company, which is to come In AFTER
the annual election to be held this month,
before anything like a merging of the
companies could be undertaken.
So little has been attempted toward a
merger that it is not known whether an
agreement could be reached by the stock
holders of the two concerns. In fact, II
is known that some of the largest STOCK
holders of the Capital Traction Company,
when their attention has, been called to
the gossip on the subject have expressed
themselves very positively as being OPP
posed to such plan.
1t is supposed that the Capital Traction
Company. owing to it's financial condi-
ton. which on the basis Of the market
value of its securitHs is rated as superior
to the other compShy, would not derive
much benefit from such a policy, out II
is further stated that If the combination
is determined upon the motive Will not
be the usual one in such cases OF pronts
to promoters and stockholders from stock
dividends and the distribution of an ex-
banded CAPITAL
In fact, it is not Thought that the new
securities which in the event OF merger
would be issued in lieu of the outstanding
securities of both companies would diiIeT
in the total from the present complheu
liabilities of this nature which are nov
out. There are other consloeratiohs' IL 70
believed. which would have weight. anc
they have to do not only with economies
i'm MANAGEMENT under one company, put
also with meeting demands which crop up
in Congress from time to time
For example, as Mr.. SmNh poil.eu ~.
in the course of his newspaper interview
yesterday, if the two systems come To-
gether then there would be no necessity
for the legislation now proposed pro-
yiding for universal transfers, TOT unuer
existing law with only one street rali"ay
company in the Dlstrlct inns System "o"iu
be in operation. M
There are other considerations OF IKE
nature which it is stated can be urged IN
favor of a consolidation when the Time
arrives for taking that supJect up s. ou'
just at present there are no active step
being taken to get such a scheme in
shape.
The course of the trading today at the
meeting of the stock exchange reflected
the change in the sentiment toward tn
securities of the Washington Railway and
Electric Company which has recently
taken place. The bonds of the compan.
sold up to 761s, one block of $4,000 going
for IS.
There was not much done in the pre-
ferred stock of the company. The mai
demand seemed to be for broken lots
fractional bids under-122. The b.u for the
Stock remained at TN. as was the cas-
yesterday, with the asking price at Y.
The common stock was also neglected.
The brokerage firm of E. r. CHAPMAN
& Co. OF New York city having gone out
of business the Office in this city has been
taken by the firm of E. F. Hutton & Co.
also of New York city.
Mr.. G.. Bowie Chapman. the manager of
the office in this city, will continue in the
same capacity with the firm succeeding
E. r. Chapman & Co.
1t is reported that call money was quot
ed In New York yesterday at . per cent
which is the first time since the latter
part of September that level has been
reached in the gradual scaling down
which has been going on in the tariff on
this class of loans.
This circumstance, taken in connection
with the statement that money is now
flowing back to New York banks from
the country banks and also the steady re-
tiremept of clearing house certificates, in
dicates to competent observers that prog
ress Is being made toward a more normal
state of affairs.
At the annual meeting of the stock
holders of the Prudential Building Asso-
citation yesterday the following oftlc:- g
and directors were elected:
Henry E. Bittinger, president; Dr. NJ =
rice E. Miller, vice president; Louis II.
Stabler. Secretary-treasurer; E. Hilton
Jackson, attorney; Karl F. Brodt, Frank
NJ. Firor. ]. Fl. Goodrich, William F.
Guide. Robert n. Harper, George H.
Judd, D. ]. Kaufman. Andrew D. Loe.-
fer. John Scrivener, Thomas NJ Stearn,
Carl w. r. Stodder. Oscar G. Vogt, John
c. Weldon, directors.