The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1909-07-11
Strange Activity in Local
Stock Mystihes
Brokers.
'CHANGE ADVANCES
NUMEROUS GUESSES
One Theory Is That Wall Street
Syndicate Wants to Accumu-
late Large Holdings.

The chief subject Of comment in local
financial circles These days centers
around the heavy movement in the stock
Of the Washington Gas Company, and
the probable source of the buying
During the last few weeks, or from
June Is to date, more than $500 shares
Of Gas stock have changed hands on the
Stock Exchange mere, and the price has
advanced from $3.50 share to $75.621a.
Many theories have been advanced as
10 the nature Of the movement. The ac-
emulation has been paid for with New
York drafts drawn in favor Of Z. +.
Hutton & Co.. a big Wall Street firm,
with a branch office in this city. The
buying movement has not been general.
Washington interests have not bsen as
ISOLATED with those acquiring the stock
the insiders and the Standard Oil in
terests are not implicated in the move
ment.
It is probable that there were some
applications in the sales, some sales
made to other brokers, but it is safe to
say that the purchases. with the eXcep-
ton Of few hundred shares, have been
delivered to Thomas L. Hume, local rep
resentative Of E. F. Hutton & Co.
The accumulation has not been made
with that caution that usually attends
a considerable buying movement. Ad-
vances did not seem to check the buy
ing even temporarily; indeed prices
were moved up to meet sellers views
readily. as if the buyers were not averse|
to taking the stock at higher figures.
Stock Comes Out.
And the Gas shares have come out on
the advance freely. Certificates grown yell
low through prolonged stay in iron
boxes and vaults have been marketed.
bu the absorption has taken the stock
day by day TO the limit Of the offer
iEgs and around the high price of tho
session.
Friday of this week was the only
time when there was really any hesita-
ton in the movement. There seemed
10 be much stock for sale at IS and the
buyer did not care TO take much above
IA.
The movement is all the more inter
esting because the chief figure in the
open. in the current operations, was
prominent in a more or less speculative
operation IN Gas early in the year when
II was expected that Congress would
give permission for the capitalization
of the Gas certificates, of which there
IS outstanding an amount cO-equal tol
that time also the stockholders cor
ndenuy counted on the cutting of a
melon By the Gas company in the shape
OF an extra dividend, said 10 be some
place aroun1 10 per cent.
congress would not permit OF any CAP
ltallzatiOn Of physical properties or of
improvements made, and the directors
considered il wise to make the melon
one-fifth Of the expected size, . per cent
extra.
The result was that Gas started on the
down grade, breaking from $3.50 TO
$3.50 a share. There was considerable
gossip attending the break, some mar
gin calling, but always a little more
accumulation.
Rumors Sifted.
Washington dnanciers have listened /
to and sifted every rumor. One story
was 10 the effect that the United Gas
Improvement Company was working to I
get sufficient holdings to secure recog- !
milton and representation on the
COmpany's directory with view of
urging the Introduction Of natural gas 1
at a price that would be welcomed by /
the people of the city and that would /
make good returns 70 both the Wash 1
ington Gas Company and the United /
company
This rumor does not appear to be |
well founded indeed IL IS denied IN inner
circles So, also, is the story that the
Gas insiders have been accommodating /
stock.
The latest rumor seems 10 find some
supporters II is 10 the effect that a |
Wall Street syndicate of ten men, man
aged by T. r. Hutton & Co, has start /
60 IN 70 accumulate large holdings Of l
Gas. The Street believes this, but there
IS not even a guess as to the purpose
or accumulation, unless on the theory
that Gas shares are a good purchase IN /
that for years they have paid share |
holders nearly 5 per cent on the present
market value or the stock, and with /
money loanius on Wall street at less
Ihan 2 per cent the investment might
be desirable.
Stock Advertised.
Advertisements have been inserted in
New York papers eXtolling the merits
Of the local Gas company, and men
tioning the extra facilities OF the al
vertiser for executing orders Ia these
shares.
Washington welcomes the movement
as a relief in midsummer dullness.
Many investors have taken advantage
OF the high price and sold much stock. |
Perhaps a few local traders have sold
short, but the ear marks Of the bull [
movement have been so plainly exposed
that selling short could not be cOnsid- /
cred other than as foolish move. /
There has been but little stock sold
for future delivery.
IN the meantime members Of the local
exchange admit that they know nothing
Of the inside Of the movement. They
have their gl1esses, but they do not
center around any actual developments
so far as the company Is concerned. /
Insiders are reported as not concerned
ia &c. They do not hesitate 20 say that
II the buying Is purely speculative I
THE scllilg-Out movement will be much
h3roer than the accumulation has been.
The Washington Gas Company earned
a5Out 10000 last year. This year the
earnings will be about I,lOJ00O
After all there NAV be something
doing" something more than q pool TO
take a flyer 81 Washington Gas.
IL Is generally believed that President
Mclean Is a large owner of Gas GER
tifcates The records six months ago