The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1910-09-07
Important Change Made by
Directors in Financ-
ing Plans.
SHAREHOLDERS WILL
PROFIT THEREBY
Dividend Viii Be Raised to $3.50
to $500 a Share Meeting
Postponed.

Directors OF the Washington Gas
Company have made an important
change in their financing plans and one
that win give the holders OF the stock
of the corporation a much larger slice
or the melon than originally contem-
plated. or promulgated in the OFFICIAL
announcement some weeks ago
At that time II was stated that the
holders Of the S2.600.000 certificates, the
legality Of which have often been called
in question. would be given the privi-
lege Of exchanging their certificates,
dollar for dollar for . per cent bonds
AS the new bonds. when issued. viii
probably have market value Of better
than sos, the new proposition TO redeem
them in cash VIII take from the holders
o. the cerLi1cateS at least = on every
SOC worth OF bonds. $50 on the 81 600
bond, a grand total OF 100000
The Underwriting.
And by this change the shareholders
VIII be given the privilege of underwrft-
ing the bond issue, the proceeds Of
which viii go 20 retirement Of the Ger
tificates- They VIII get the bonds at par
thus turning the matter OF S21s.9l9 10
their credit
The action Of the directors in deciding
70 retire the certificates, which is per
Tnlssable under the provision Of their
issue, has caused considerable surprise
INSIDERS were big holders OF the Ger
uhCates, and would profit thereby.
II also explains the urgent desire on
the part or the insiders 10 acquire stock
al private sale during the last few
weeks-the stock gets the biggest share
of the melon
The postponement Of the meeting w
III October Il, is simply TO give time 70
the financial interests 10 arrange for
the underwriting Of the S2.619,9l0 bonds,
and 10 give stockholders the necessary
fourteen
transferred on the books Of the meet
ing
To Issue New Bonds.
In addition the directors viii advise
the issuance Of S59,000 per cents 10 be
exchanged for the 5000 As, as OIL
ginaIIy provided, and the authorization
OF 5000, 600 5's to be used to provide
funds for future betterments as they
may be required the bonds 10 remain IN
the Treasury The syndicate VIII not be
required 10 take many Of the new bonds,
as the shareholders VIII want them and
want them badly
The whole plan. with the exception
OF the proposed redemption OF the Ger
ttf1Cates and the date Of the meeting, Is
identical with the statements OF inten-
1fon published in The Times Sunday,
August ~
There is nothing new in the PROPOSE
ton to pav dividends or ne basis OF
the physical valuation OF tire proper
1t remains IS before and -he general
dividend viii be on the basis Of $500
$3.50 2 share. nearly . per cent on the
face value Of the stock. which the d.
TectOrs propose TO ignore and 4-5 10
40 per cent on the dollar Of actual
physical value-on estimates Of physi-
cal valuation, made by competent and
diSinteTeSted appraisers, IeST the
amount 10 be paid out on the bonds
In Installmeuts.
The reserve issue OF bonds is 10 be
requirements demand
Last week but 10 shares OF Gas sold.
this at an advance Of S1-51 a share So
FAR this week the stock has advanced
200 a share, the closing today be-nl
81 a share.
The Gas Certificates, for which SIC5
was bid YESTERDAY were unstable to-
day az better than par
This viii be their retirement value
unless the directors again change tLei-
minds and formulate a new scheme