Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-01-06
LOCAL FINANCIAL NEWS.


curity. and more especially as affected
by the recent decision of the United
States Supreme Court in the case Of the
tinues to be the topic of conversation
in circles where men are interested in
such matters and like to keep posted
on what is liable to happen, as having
an influence upon the market value of
securities.
During the two days that have elapsed
since the decision was made public the
market course of gas stock shows a
loss of about two and half points
when the present selling price is com
pared with the recent highest. Today
nothing was done in the stock. There
appeared to be no eager desire either
to buy or to sell, and if that may be
taken as any indication of the senti-
ment on the subject it may be inferred
that the attitude in regard to this stock
is one of waiting to see what will turn
up.
OF course, on this subject, as is the
case in regard to most everything of the
sort, there are advocates on both sides,
representing, respectively, very fairly what
are technically termed III the stock market
the bear and the bull sides.
On the former will be found those who
are of the opinion that the court in affirm
ing the right to fix a rate for such serv-
ice as the gas company gives, based upon
such a moderate return to the stock
holders-judged by prevailing standards
in such matters-as 6 per cent has fixed
a permanent limit and has done away
with the prospect of the accumulation of
a surplus and its distribution. 1t is further
urged on this side that If the constitu-
tional point raised against the law on
which the pending case of the gas COM
pany rests is not sustained by the Su-
preme Court and the company is allowed
to capitalize it's reported value, less, OF
course, the value of its franchise, then
it's market value would not exceed the
current market value. which is now about
three and half times its par value.
On the other hand this judicial judg-
ment of what are fair earnings for such
a corporation is regarded as of great con-
sequence, for it follows or it is claimed
that it logically includes the power to
make the capital represent the expendi-
lures in the way of extensions and of bet
terments secured in part by payments
from the surplus which belongs to the
stockholders.
1t is also supposed that the conversion
of the outstanding bonds or certificates
will be permitted so that the new stock
issue will represent the entire security list
of the company. and will also be a return
to stockholders of money that ought to
have come to them, but which was used
in providing additional facilities for do
ing the business of the company.
1t Is not quite clear what is thought of
the probable action on the bill that has
passed the house at the present session,
and which proposes a reduction of the
price of gas to eighty-five cents and at
the same time repeats the law of 1890
under which the case now before the Su-
preme Court was brought. The new meas
ure does not make any provision for the
adjustment of the capitalization.
AT one time it looked during the session
of the stock exchange today that there
was going to be something done in Lam
ston. for. as it happened. a couple OF
hundred shares were for sale, and were
offered at 12&. which was the bid of yes
terday, and there was such a scramble
for them that the two blocks were taken
at that figure in no time. However, 1t
was all over almost soon as begun, and
there were no more buyers for the stock
at the same figure as it continued to be
offered.
The shares of the stock Of the Metro
politan Bank sold for 225, and then the
bid was 90, but there was no more stock
offered for sale at any price.
Several twenty share lots of Fire
mems Fire Insurance Company stock
sold for IS, which is the current bid for
this stock. and there was also a bid at the
same level for 100 shares, but without re-
suit. The bid at the close was IS and the
asking price 1874.
One hundred and fourteen shares of the
stock of the National Union Fire In
surance Company sold for 6la and then
the bid was 63s, but no stock was Of
fered
FiftysiX shares of the stock of the Pc
tomac Fire Insurance Company were Of
fered at SO, and 30 was bid for the lot.
The bid for twenty-five shares was 2SR,
and the asking price was BIZ.
AS high as SS3s was paid for the 4 per
cent bonds OF the Washington Railway
and Electric Company, which is the high
est Ievelreached in recent days for this
security. During the call the common
stock of the company also sold at an ad-
sold for 40B and 40A.