The Washington times., 1911-05-14

tile JcOTSEtONH HSNo NNhAPA"Jb 49,
lined by the general counsel for the
company, provided for an issue of $l,OC0,-
600 bonds. On motion of Director Nicol-
son, seconded by Robert d. Weaver, the
proposed bond issue, upon which the
shareholders will vote June ), was in
creased to $1,000. 900. This would seem tc
Indicate that the. insurgents in the d.
rectory of the corporation are not op-
posed to the financing Plan, but nave
directed their efforts to preventing the
reelection Of President Howard, small
shareholder and the representative OF
the Washington Gas Company 1t Is
not expected that the opposition will
carry their objection to the Washington
gas company's voting of the George
town stock it owns into court, until
] the day of the meeting, but the infer
nation is almost positive that such
action will then be taken.
OF the s2,00O.OO0 bonds to be issued the
resolutions to be voted on June 8, pro-
vide that SOS, 900 shall be used in making
! the exchange for the outstanding $225, ,rOe
Of 5 per cent certificates of indebted
ness; and one of the resolutions cites
the belief of the directors IL the willing
ness of the holders of these debentLres
10 exchange the same for bonds secured
by trust deed. Naturally they will well
come the exchange of their certificates
due practically two years hence for
real bonds not due until August l, 1861
| There should be some compensation 10
the gas company for making the ex-
change.
OF the bonds to be issued 1900, face
value. or as much as may be necessary,
are to be used TO liquidate the floating
debt Of the company, this debt being
certified TO by resolution in the pre-
amble This action simply secures an
extension of the debt for fifty years,
and makes ii an interest-bearing obli-
gatiCn.
Then $4,000 of the proceeds of the
sale Of the bonds are to be used in the
erection Of modern plant site a 75G OyD
cubic feet gas holder. and extensions of
the system, all matters in connection
with the purchase of site. plant, etc,
TO be left TO the sound discretion of
the directors"
retain s575.GO0 of these bonds in its
treasury to be sold to shareholders
at not less than par. the directors 10
apply the proceeds as above provided.
The remaining -Sl,200.OOO. bonds are to
be held by the trustee, the American
Security and Trust Company, until re-
quired BY the company. Upon receipt
of a certificate from the board of di-
rectors that a definite sum Of money is
needed, for the purpose of enlarging or
extending its plant or service, the trus-
tee will deliver needed bonds to the
company until all have been sold.
There seems to be no doubt Regarding
the adoption Of the resolutions.
1t is expected that ii will be two
years before the company can anticipate
increased earnings from extensions and
from reduced operating expenses. but in
the meantime many of these bonds will
n fT-Nv 4 =,
interest thereon be a tax on the George
town Gas CO.npany's earning power.
Unless there are hidden assets" in
large volume on the records of the cor
poration,. il will be fine work for the
sound discretion" Of the directors 20
finance the interest. if the record of 1910
is to be aiken as a criteriOn-'S Surplus
$40"
BY the way. there is nothing in the
resolution that indicates relief from
dollar gas for Georgetown people.
Attorneys Of the District Bankers
Association are engaged in a study of
the legality OF a matter of importance
TO the banking fraternity. FIR some
time it has been the habit of some of
the trust companies and banks to ac-
cept deposits jayable to either of two
parties, man and wife, mother or daugh-
ter, etc, ''or the survivor" Deposits
have also been accepted for William
Jones or his surviving heir" These in
stances are simply examples of ''survi-
vor'' deposits.
1t makes it possible for practical ad-
ministration on deposits without the
need of going through expensive pro-
cesses of law in administering. If
the attorneys for the association decide
1t is within the rights of banks to make
agreements of this character, it will be-
come more general On the other hand, |
an adverse decision will result in more
administration fees for the trust COM
panies.
Despite the easy conditions that pre-
in, At ho 1I-nrld |