Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-10-03
ADVANCE IN STOCK VAL LUES
Commissioner Asks if Certain Per-
sons Got in on Ground Floor.
ALLEGED PROFIT IN THE TIP
Wants to Know the Program Of the
Promoters and the Effect
on the Public.

duultlOIldi information concerning thc
motive back of the formation of the
thirty miIlion-dollar corporation known
as the MarylandV Virginia Railway Com
pany, which is proceeding to the ANAL
gamation of certain District Of Columbia
and Virginia utilities. are asked the pro-
moters of the merger scheme in an in
terview given out today by Engineer
Commissioner William v. Judson.
The Commissioner refers to the advance
in the common stock of the Washington
Railway and Electric Company, which, ne
says has enabled some persons to make
large actual or paper profits during the
past year, and declares that the opera
tions of the Virginia corporation doubt
less were anticipated at the time the
stock movement began.
He asks If any of the promoters, for
the purpose of retarding the passage OF
the public utilities bill. held that there
were "jokers' in the bill, and concludes
with the question: "Was not the real
and only Joker their claims of jokers'
in the bill?'
Big Advance in Stock Values.
The Commissioner said:
Referring to the various and sundry
that have been published
as to the motives and purposes OF those
behind the great new $30,O00.0OO. or $780,
000, 900, or $130,000.0O0 corporation that
is operating in the securities of one or
more of our public utilities. one result
stands out. and perhaps one motive Is
revealed.
Between October I, 1911, and Septem-
Der 1, 1912, during period OF eleven
months, the common stock OF the wash
ington Railway and Electric Company
80. The Maryland Virginia Railway Com
pany was incorporated in November,
1911. and doubtless its operations were
anticipated a month earlier, when the
stock movement began. Some persons
have made large actual or paper pronts
during the past year.
with this preliminary. would like to
add certain questions to those asked by
one Of our newspapers in recent ed1-
torial.
Were Promoters on Ground FloorP-
"Who were the prime movers in the
Of the Maryland-Virginia
Company?
Ibid they not get into that company 'on
the ground floor paying about Is for
stock of a par value of 100?
ibid they not have inside information
in advance of other stockholders of the
Railway and Electric Com
pany that there would naturally be an
active movement upward of the stocks
OF that company due to purchases OF
stock by the Maryland-Virginia Com
pany, and due to a prospective Increase
In the dividends of the common stock OF
the Washington Railway and Electric
Company?
Were not those who had this inside
practically identical with the
prime movers in conceiving and organic
ing the Maryland Virginia company?
"Have not these gentlemen made large
sums of money through their operations
during the past year. incident to the ad-
vance In quotations of the Washington
and Electric Company's stock?
"Have any increments to it's capital
been made available for extensions of it's
lines by the Washington Railway and
Electric Company?
Have not most increments thus far
been confined to the capital of the gen.
tlemen interested in promoting the Mary
land-Virginia Company?
Wants to Know Program.
/ "Is it or is it not proposed that some
time hereafter the stock Of the Maryland
Virginia company. purchased by insiders
at around Is, shall pay dividends?
the money coming from to pay such divi-
dends?
What extensions of the Washington
Railway and Electric Company have yet
been authorized by Congress. and what
extensions can be built without any such
authorization?
"Would it not be reasonable to suppose
that Congress. when authorizing extern
sions would, on proper representation,
o,I IL
the funds for such extensions?
"Would not a public utilities commits
sion be empowered. If the Senate bill
becomes law. to authorize the sale of
bonds for proper purposes?
Ibid the promoters of the Maryland
Virginia Company desire the passage of
the public utilities bill? Have any Of
said promoters. for the purpose of re-
tarding the passage OF said bill. held
that there were 'jokers' in it? And what
are said 'jokers? Was not the real and
only joker their claim Of .jokers' in the
bill?'
Local Situation Unchanged.
The situation with respect to the TAX
ing over of District of Columbia and Vir-
ginia utilities by the new corporation re-
mained practically unchanged today. The
stockholders of the Arlington Elec-
trio and Braddock Electric and Power
Company Will meet OctODer Id TO decide
whether those corporations are to be alb
sorbed in the amalgamating scheme. AL
ready the directors of the companies
have decided In favor of the project
The next step in the developments con-
templated will. 1t is expected, be action
by the boards of directors of the Wash
ingt tom Virginia Railway Company and
the Washington Railway and Electric
Company to determine whether those
utilities are to become a part of the
merger scheme. If the directors take
favorable action on the proposaI the