Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-02-06
LOCAL FINANCIAL NEWS.

| both for a quotation lot of twenty
| shares and for odd lots. At the close
the stock was still to be had at that
price. while the bid was 134a4. Yes
! terday the best price paid. which was
| the highest then attained, was 134l2
! The preferred stock of the Washing
ton Railway and Electric Company also
| sold at better figures and showed a
continuation of the advance which has
been in progress in the case of that Sc
curity One fifty-share lot sold for
S9ss and some odd lots for S91s. The
stock at the close was offered al $685.
and the bid was S9ss.
The figures of today represent the
highest level reached. as we'll as the
highest that has been recorded in this
security since the spring of 1906. when
it was 81 g. having receded to that lev
Ell from the highest point ever recorded
which was done in the preceding
spring when transactions were made at
05ss.
This high point. which was attained in
April. 1905. had been preceded by a year
of steady appreciation In April, 1901.
the best figure then reached was 81. Dur
ing the past three years, which include
the period of financial depression and
consequent liquidation. great changes
have taken place in the conditions sur
rounding this security which are both
internal and external. The stock control
of the company has come into local
hands. and at the annual election of the
stockholders two years ago local men
replaced those representing New York
financial interests on the directory.
In addition the growth of the city and
the increase in the business of the COM
pany have changed materially the ratio
of the earning capacity of the compan ny
to its capitalization. 1t is further claimed
that the securities are now more strongly
held and that there is q much smaller
proportion of what is known as floating
CT nnk IL hall Lott a., <l,p,1
at any other period in it's history.
But little interest was shown in Gas
stock. Sales were made at 631s and SOS,
and then the bid was 6919 and the asking
price quarter Of a point in advance
The latest annual reports Of local con-
Germs that have become available are
those of the Washington Railway and
Electric Company, including. of course
the statements Of the business of the
subsidiary companies. The figures show
ing the gross and the net earnings of this
system. as we'll as other details prepared
in accordance with the law and submitted
to Congress, are carefully examined by
those Interested. and while the complaint
is heard that the statements are not as
illuminative as such things ought to be-
still they convey considerable information
One detail of these reports has been
commented upon, and that is the progress
which has been shown by the subsidiary
companies in their struggles toward finan-
cial independence or self support. Judg-
ing from the amount of the deficit report
ed In the case Of each of these lines, such
as the City and Suburban and the Others
1t is apparent that the progress in most
cases is backward SO to speak.
But such figures are. of course, net and
not gross earnings but they become net
it is explained after deductions from the
receipts OF large sums expended during
the year in betterments. In other words
while the reports show in practically all
the cases an increase in the amount of
business done and larger earnings, yet,
owing to the policy carried out of keep
Ing up the property, great deal has been
| spent on the roadbed and in other forms
OF betterment.
The same condition is true of the Capt.
tai Traction Company, where. in addition
to maintaining the property. large ex-
tensions have been and are being built
1t cannot be said there is any great en-
thusiasm manifested on the part of those
who constitute what is known as the
financial world of Washington over the
proposition to create a public utility COM
mission for this city. Naturally those
directly interested in the corporations that
come under the direction of such a COM
mission are not keen for such control. as
corporate policy appears to oppose any
thing that IS likely to change their status.
This was the attitude toward the inter
state commerce commission law, although
now, according to the last annual report
of the commission. the railroads are doing
everything in their power to facilitate its
work. Perhaps that would be the sequel
| in the event such body was provided
| for what might be termed the municipal
| corporations. At any rate what is going
on now in Congress furnishes, in the
opinion of some, an argument for adopt
| ing some such course that for the
control and direction of these important
interests
| The public service commission in New
York appears to be rendering satisfactory
service. although clothed with broad pow
| ers. Just now 1t is engaged In untanglng
the financial maze of the series of COM
| binations and mergings of the traction
companies of that city. 1t is safe to say
that If the commission had been in exist
ence some years ago and had done it's
duty. the main difficulty of the present
situation, the large quantities of water
in the securities. would not exist.
Big figures are used in giving the re-
sources of the institution which would
be formed in the event Of the merging of
two of the largest banks in the city of
New York. The capital and surplus
would be about eighty millions and the
deposits four hundred millions. Such a
consolidation. however, would be merely
continuation of the process that has
been going on in late years in all por-
lions of the country and including all
sorts of interests and classes of business.
The business that is centered in two
such institutions as the City Bank and
the Bank of Commerce in New York city.
| which are generally known. respectively
as the Standard Oil and Morgan banks
the merging Of which is talked about
does not come entirely from the city. but
, from all parts of the country. Both CT
| these banks, but more especially the
| City Bank. Nave for several years past
been forming what is known as A chain
of banks. which stretch throughout the
| country.
The connections in this city were made
I some time ago and are represented by
| stock ownership in at least two OF the
national banks Of the city and one of
| the trust companies. Such connection
must be profitable or it would not be
| made. The tendency to make big con-
Germs out of small ones and expand a
business from a merely local affair into
one that IS more or less general Is now
we'll recognized in the banking world as
| something that is good to do.
There is no doubt that this process in
| this city has reached the limit. for the
| present at least: but after awhile, when
| the volume OF business increases, as it is
doing. OF course. each year. keeping pace
| with the increase in the population, then
| something more may be expected in this
! direction.
While banks in this city have been