The Washington herald., 1910-06-30
GAS SHARES HIGHER
Price Advances Five Points
in Two Days.
BOND ISSUE IS ANTICIPATED
Company May Put Out $500, 900 in
8 Per Cents to Replace 100000 In
Per Cent Bonds and $4,000 900
Of Certificates-PIans Are Said to
BE Perfected-FoIIoyvs Safe Lines.

One Of the features OF the trading yes
terday on the local stock exchange was
a jump in the price Of Gas stock. con-
tinued from the previous day. Last Mon
day Gas rose about four points. Yester-
day the sales began at 721s and climbed
to "a, and all this on the transfer of i75
shares.
The cause OF this sudden soaring of
Gas shares is fS-21 in the information
which has been allowed to filter through
well-known channels that the company
now stands ready TO redeem its long-de-
layed promises 10 the stockholders.
II was stated yesterday by men close
to the management that the gas COM
pany would shortly issue S2500.000 in 8
per cent bonds to cover the outstanding
Gas IS and the Gas certificates. The 4
per cent bonds amount TO $500, 900. and
the certificates of Indebtedness were is
sued several years ago. 81 of indebted
ness 10 81 OF the capital stock of the
company, making 100000 in the aggre-
gate. These certificates draw 6 per cent
interest.
VIII Replace Securities.
It IS said TO be the intention of the
company 10 redeem these outstanding GER
tihcates and bonds, replacing them with
the new per cent bonds on basis that
Will be advantageous TO the holders. It
is said to be the intention of the company
then 10 declare a substantial dividend,
which viii distribute to the investors
most Of the surplus Of the company.
This information. coming from trust
worthy sources, accounts for the rise in
Gas stock IN the past two days. The
announcement was at the moment when
it became known that the large accumu-
lations of stock in New York were 10 be
placed on the market. and with the melon
cutting imminent brokers and specu-
lators are ready to take over almost any
amount OF Gas at the advanced figures.
1t is not thought likely by conservative
local brokers that the price OF the stock
viii be carried much above IS, as II is
figured that that level for the stock will
be about equivalent 10 the recent market
price plus the extra dividend and value OF
the rights on the new issue OF bonds.
Follows Safe Lines.
In case the gas company follows cut
the programme indicated. 1t will be
along the line of least resistance IN en-
larging the securities Of the company.
The management realizes that any fur
Their stock issue Is a hopeless undertake
ing, with Congress opposed TO it and the
public of Washington demanding cheaper
gas before the capitalization of the COM
pany is increased. The bond issue Is the
easiest way out OF the difficulty. and is.
withal. under all the circumstances, good
financiering.
The time for the issue OF the proposed
bonds has not been officially announced.
but II is expected that It VIII De some
time IN the month of July.
Trading yesterday on the local exchange
other than in Gas was quite spirited.
Bond buyers we're again IN evidence, TAX
ing over all the offerings that came with
In the current prices. Capital Traction
IS sold at 1l5. Columbia Railroad rs went
at 105. and Potomac Consolidated IS
brought 1904 to 1O1
Lanston stock sold an option OF 20
shares at SIS. and the rights came out
again freely al 4 ga
Bank stocks were again taken In small
lots by the investors who are seeking
them as permanent interest payers.