The Washington herald., 1912-11-09
Local Financial Matters
BY I. A. FLEMING.

BY I. A. FLEMING.
The proposition which the washington
U<iiities Company will before long offer
the shareholders Of the preferred stock
Of the Washington Railway and Electric
Company. and probably TO the holders Of
common stock as well, is said to be this:
one 1900 collateral trust per cent bond
and two shares of the stock Of the Wash
ington Utilities Company for each ten
shares of stock in the Washington Rail-
way and Electric Company.
The two classes Of stock are practi-
cally on parity on the market. and the
exchange would therefore seem. on the
face Of 1t. to be equitable. Perhaps this
rarity has been brought about Tor TINS
purpose.
But IL the shareholder does not care to
enter into negotiations for an exchange
Ct securities he will be given the option
Of q cash payment, probably somewhere
around $50 a share.
Not caring to do business either way
the shareholder may then lock up his
securities in his strong box; get his divi.
dends as usual, especially on the pre-
ferred stock, which 10 cumulative.
In the event of desire to liquidate
following the closure OF the period OF
exchange and the closure Of the period
for cash payments, the holder Will al
ways have the opportunity 10 20 '"o
best possible for himself.
To an absolutely disinterested observer
it does not look as II the washington
Utilities Company would care to nam
tain a high price for minority holdines
Financing for the entire proposition mas
been entirely completed: was settled 70
the last dollar before Washineton
he Maryland.V virginia
story.
John M. Riordan. cashier of the Bank
of Commerce and Savings, made an IN
terestinR and instructive address 10 tne
punils of the Business High School, yes
ferfIav afternoon. His subject was Tne
Advantages of Savings Bank Ac-
count" He touched especially on the
manner in which interest cumuiated anu
set forth plainly the wisdom OF oes,n
ming TO make use of the savigs pank
early in life.
Mr.. Riordan's topic Is an especiany
interesting one to youth. and ne Is Iul-
ly competent to present the advantages
in an attractive maner.
"E / s. writing from Dallas. Tex,
saws. I was connected with the Treas
ury from 1857 to 1897 and during that
National Bank stock at 103 / am stu
holding IT. In February. 1910. the stock
was increased 80 per cent, each STOCK.
holder of record being entitled TO ouy al
$3.50. in ratio with holdings
II noticed in a recent issue oi INC
Herald that the net earnings or the com-
pany for the year ending September =
were $eS,SoS.
what I wish to know. is your opinion
of the Lincoln National and its pros
pects, notice the stock remains
around $50 a share.
This is one of the questions that prop,
ably should be answered by private man
hut il offers such a good opportunity to
saw a word for an excellent 1nsttutio"'
that advantage is taken OF the auer.,
1t is true that the bid price OF the
stock STAYS at $50 a share. But II Is
also q fact that no one seems TO care
to accept the price.
From day to day the selling quotation
is missing There is no stock 1or saie.
Probably better than $50 might be oo-
tanned il a fifteen share lot was onereo
for sale.
The Lincoln National is a lively. grow
ing institution with an excellent corps
Of of6cers and a sound and able body OF
directors.
It's deposits have increased steadily; the
introduction OF a savings department.
having proven very successful Whhe the
lowering Of the bank entrance to sioe
walk level and the acquisition OF entirey
new banking fixtures has made the oid
hanl ~ is only twenty-five and one-half
yc.rs old at that, modern and prosperous
looking. The amount of money required
was not large.
Tbere is a profit of sas share on the
venture and a dividend annually of .
per cent-a desirable investment
There are few men in Washington who
have more business friends and associ-
ot.s than W. A. H. Church. chairman
of the board of directors OF the COM
,,.rcial National Bank, and former
nr..ident of that institution. He is a
,,atiye of this city and has been contfnu-
ously in the lumber business for many
years
of relief in the announcement tnat MI.
Church. who has been seriously Ill LOT
some weeks is apparently on the roao
to recovery, but their Satisfaction VIII
=. dimned by the fact that 1t has been
necessary to amputate his right leg apose
the knee. :.
THAT his life has been spared is In it
self satisfaction to his closest friends
and associates.
Here are three queries rum . AooA
bank cashier:
What does it cost. per kilowat hour'
to manufacture electricity?
What is the price. per kilowat hour'
TO consumers? What to the Washington
Virginia Railway Company"
To the best knowledge and belief OF
the writer 1t costs 10 cents a kilowat
hour in Mount Pleasant localities. prob
ably 4 cents in big business establish
ments-
For further information the cor
respondent is respectfully referred to the
General manager Of the Potomac Elec-
trfc Light and Power Company.
The meter, when not working. In apart
ment houses, earns 81 month.
The Commercial National Banks busi-
ness circular. which 1t will issue on
December 1 and thereafter once a month.
will not contain anything concerning To-
cal matters other than such statistics
az NAV be considered Of sufhcient i'm
portance to take place with big busi-
ness.
This monthly circular will place the
Commercial National in line with other
institutions that have adopted this
method of keeping their customers post
ed with the best obtainable news and
statistics.
The government has taken a lease OF
the new building being erected for the
ot