The Washington herald., 1912-10-13
MISUNDERSTANDING COMMERCE
Observation-Disclosures

curities been given consideration up to
date.
The holding company idea prevails
The WASHINGTON Gas Company would
take over the stock Of the pool which
to-day holds practically all Of the mi
nority stock and lock 1t away with the
,, $50 shares which the company now
owns.
On Its normal market value. a. .
dividend payer only few owners Of S
per cent Gas bonds would care to make
change OF their income produced for
stock that our correspondent admits
will yield but little on an investment
basis.
The Washington Gas Company may
buy the majority holdings in the George
town Gas Co.. at least it will consider
the proposition.
II 1t does 1t will be purely discounting
the dim and distant future as well as In
getting rid Of a thorn in its side-a MI
nority bunch. small though 1t h. OF
shareholders who utterly refuse to rec
ognze as legal the common law mar
rage OF the two companies-heretofore
known and recognized for a period Of
seventeen years.
washingtons largest bank. the Riggs
National, organized before the war. has
enjoyed a most prosperous year.
From September l. 1911. to September
4. 1912. the Riggs National earned $s2s.-
1ss-on a profit basis at par with the
leading fiscal institutions Of the large
cities Of the nation. Not a Baltimore
national bank came within speaking dis
tance of the local institution: not New
Orleans institution came within 80 per
cent of the record: Omaha's best was
SalO.c00, and Philadelphia had but one
national bank that made much more.
The Riggs National in the year named
made 2.6s per cent on net funds. earned
1895 per cent on capital. surplus. and
profits, and s2se per cent on its capital
stock 1t also raised its annual distribu-
ton to shareholders from 20 per cent to
26 per cent
1t pays to be big and to have good
New York connections.
A New York exchange says that the
Pennsylvania has purchased the Chesa-
peake Beach road to give II connection
from Washington to a deep tidewater
port. This means that there will be
much maintenance money spent on a
road that has long needed the paternal
assistance OF TlCn OWHeT
The Capital Traction Company has cost
for construction. power houses. plants.
units and equipment up to June 80. 1872.
the sum of sl6,s 425. a cost per mile Of
road of $3O4,6i3.
On June 20. 1912. the company still held
$3.50 500 bonds in the treasury and $16l 500
in the sinking fund.
From July / to December 81, 1911, 1t
paid SOS O6a interest on bonds, and for the
first half of the calendar year 1t paid
$685. 49,, a total OF s234.S2I. The surplus
for the year ended June 30. 1872. was
s1OI, ,716. after charging OF to depreciation
s2e4 02i. Additions during the year were
valued at $397.s54.
Pay-as-you-enter cars are one Of the
most important factors in reducing claims
for damages. Injuries and accidents cost
the Capital Traction Company during the
year ended June 30. 1912. $ss,470.
Facts anent the Virginia
Railway Company's earnings are espe-
cially interesting on the eve of the pro-
posed merger with the Maryland-Vir-
sinia Company.
The company has 45. s. miles OF road in
Virginia and 41y in the District. as well
as 3.e5 on Government reservation.
June 30, 1912, 1t had slS.sco mortgage
bonds in its treasury. For the year end
ing with that date It had earned a net
operating revenue Of s26S,s60 and a net
income of sS3, ,033 Its surplus at the close
of the year was SSSS.Sgi
These figures have not been published
before, neither have the Capital Trac-
tion statements
The action of the local stock maket
from day to day shows the net results
Of the uncertainty of the merger propo-
sition as a whole. Failure Of the pro-
moters to make public announcement.
probably because the time is not ripe, in
their opinion, has not only killed of spec
ula ton. but it has made investors chary
of operating.
Members Of the exchange and bankers
generally have been importuned time and
time again by holders of the preferred
stock of the Washington Railway and
Electric Company. with requests for ad-
vice The drop in the price from IS TO
9Ols. unexplained, caused much uneasi-
ness
As rule the advice given to these in
quirers is of this character:
Nothing can hurt the position Of the
preferred shares and the bonds Of the
Washington Railway and Electric Com
pany. They are amply secured and no
merger proposition can in any way dam
age their rights or value-hold on to the
preferred stock"
1t is good advice and one cannot go
wrong in following it.
The next meeting Of the District Bank
ers', Association will be held Monday
evening. October 2s, in the red parlor Of
the New Willard. Refreshments will be
served.
1t may be that the consideration Of
the bank examiner matter for local in
stitutions may come up, as the action
taken last year has not been fruitful in
result, the national examiner for this
district having refused the tender Of the
position as examiner for the association.
The question Of interest on deposits Will
not be discussed.
Merger matters are at q standstill. Re-
ports have 1t that the Arlington Light