The Washington times., 1910-08-28
WASHINGTON GAS co.
PLANS BOND ISSUE
Stockholders Will Be Asked
in September to Author
iZe Improvements.
By I. A. FLEMING.

Stockholders in the Washington Gas
Company win be asked at the special
meeting called for September 25. 70 aU-I
thOrfze the issue Of S5,0o0.G08 improve
ment per cert bonds.
As this movement is in line with long
contemplated financing, and as the
shareholders are 10 be handsomely
treated. II is not at al likely that they
VIII offer the slightest objection 10 the
program
1t is proposed 20 retire It's $4,000 1
per cent first mortgage bonds through
an exchange for per cent bonds
Should any Of the holders Of these
high grade bonds object 10 permitting
an increase OF over eight fold IN the Sc
cUri;y 20 be placed on a parity with
them, they VIII be permitted 20 hold
their As. and the Gas company viii go
on with its plans, setting aside an
amount equal 20 the total held by ths
dissenterss TO provide for the payment
OF these per cent bonds when due.
and make the exchange with holders of
the 4 s, WhC consider the / per cent
added interest a sufficient inducement|
therefor
Cash for Dissenters.
The holders Of the 8 per cent Ger
tidcates are to be treated generously,
being given the chance TO exchange q
6 PEI. cent certificate for a per cent
Improvement bond. losing / per cent
annual interest. but receiving an au-I
thor5zed, legitimate bond in lieu Of the
questionable certificates Should any
holders of these certificates object 20
the transfer, they viii be paid or in
cash as provided by the certificate con-
ditiOus, 'redeemabie al par, after june
], 1903 40 mention has been made Of
a syndicate 10 finance the payment or
certificates that may be rendered ICF
redemption, but that matter could De
arranged on short order.
In making the exchange OF bon IS,
etc $50 Co OF the Improvement .
viii be accounted for leaving Sl,s4-,1lJ
In the treasury % be issued from TINE
In time as improvements may war -1J-
BY the refUudiug operation the Gas
Company VIII save annually $1,000 in
me stockholders viii receive the
greatest benefit from the contemplated
plans The Gas Company claims lHat
It's property has an actual physical
valuation Of about SiS,1CtvJU
Favors 8 Per Cent.
In the semI-officiaI announcement OF
the plans published weeks ago. the
Gas Company declared itself IN faVJ u
Of paying dividends not in excess Of
per cent on the actual investment In
its property DeducJing the amount
OF bonds TO be used in the refunding
ouerations. leaves practically 10000
GOO - the estimated valuation Of Ihe
Investment represented BY stock six
per cent on SlO.OOO-OO0 IS SbgO-OUU-
Divided among the holders OF 10000
shares the distribution on account OF
the dividend would be about S4-61 a
share or nearly % per cent On the
face valuation s. a-share, as pro-
vided by the ancient charter OF TIE
corporation which IS equal 70 4ol
Der cent OF each 500 invested CAPT
II is expected that the issuance of
all CT any part Of the S1,S0O-0VO i'm
Trovement bonds held Tor betJe--UenLS
VII be followed by an increase n
earnings sufficient TO take care OF
the added interest
some financial interests in Wash
fugron have believed that insiders IL
the Gas Company were largely inter
eSted IN the 9 per cent ceTuncateSs
and com 0ararITCLy small holders OF
stock BuLinsideTS have been quietly
buying the stock AT private sale with
were very near conclusion Tor the
Ord holdings, -sOE1e 5000 S1dTeS.
weeks aEo. and the stock may have
been absorbed Il is known that 1900
or 1000 shares were taken from
local ROlder at figure considerably
above the market price As there are
several large pools il IS possible that
one or more Of these nave marketed
their stock AT private sale
The Regular Dividend
The last sale Of Gas shares on the
open market was at s75-50 a share
The stock has paid s. a share regu-
lar dividend. With an occasional extra
Of like amount The certificates were
also Eiven to the shareholders dollar
for dollar as 4 present
AsemberS Of the Stock Exchange
vary in their views as to the probable