The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1912-03-21
CITYS FINANCIERS
FAVOR COMBINE Of .
STREET RAILWAYS
Commissioners Merger Plan
Widely Endorsed BY
Business Men.

Financial interests Of Washington
are apparently heartily in favor of the
proposition of the Commissioners of
the District for consolida ton of the
street railway companies and the ex-
tention of the system.
The officials and directors of the
Washington Railway and Electric
Company are willing and anxious for
the merger, but they would rather
take up the consideration of the mat
ter a year hence.
1t is known in financial circles that
the Capital Traction Company is OPP
posed to an amalgamation. They are
skeptical as to the values of the
securities of the Washington Railway
ana Electric Company, while the Off
Gals of the latter are strong in their
belief that a year hence the comm on
stock OF their company will be sell
Ing at par: that their earnings will
be large enough to warrant this price
on the basis of the dividend that can
then be paid
The common stock of the corporation
has advanced from around $50 a share
to $766 a share in the last few months.
marking the advent Of practical rail-
poration following the retirement Of c.
+. NOrment.
Advance Justified.
A Washington railway dpirector said
I'VE admit that there has been some
manipulation in the recent sensational
advance In Railway, common, but 1t
has not been all manipulation. Our
earnings Increased from $l,520,1li3 in
1906 to 81. $1,000 in 1911, and surplus from
So, $50 to ss50,901, and under the King
regime the earnings are increasing near
ly 70 per cent based on January and
ebruarY figures.
we know the intrinsic worth of our
properties. We are ready to consolidate
in the interest of the whole city on a
fair basis"
The capital stock of the Capital Trac-
ton Company is $1,000 600. all common.
The Railway and Electric has IS, 500. 900
preferred and $65o0.0oO common. a total
capitalization, including bonds. of SIS
V93, 600. The Capital Traction has
100000 total authorized capitalize ton.
1t is understood that interests in, the
latter corporation were willing to con
slider a merger when their stock was
SIPS short, the common stock of the
Railway Company, being $A, and the
preferred SIS. The Washington Railway
and ELECTRIC owns the Potomac Electric
Light and Power Company.
General opinion in financial circles
seems to favor the dissolution of this
ownership, and the union of the Wash
Electric Light and Power Company In
one system and the street railways in
another.
Favors Consolidation.
William A. Mearns. of Lewis John
son e. Co, said:
"In the interest OF the people OF the
District this consolidation scheme
should be put through. 1t might be
wen to make one utility corporation,
having entire charge OF the street
railway, pbwer, and lighting system
of the city. The matter can be aC-
COmplished. probably through buying
the Capital Traction Company"
Allen b. Walker. member of the
Stock Exchange, said:
THE benfits of universal transfers.
and extension of facilities to the
people OF SSe District make this con-
sClidation plan almost a necessity. I
believe 1t can be brought about by
buying Capital Traction. The Gas
Company. and Potomac Electric Com
pany, ought to go together. The lat
ter furnishes the power for the
Washington Railway and Electric. but
the big plant of the Capital Traction
Company, will operate any system
that may be put up to it"