The Washington times., 1912-06-09
IN LOCAL FINANCIAL CIRCLES
BY I. A. FLEMING.

BY I. A.
A correspondent has asked informa-
tion on matter of public interest, and
one worthy Of consideration; perhaps
a reply from some Of the Interested
| officials of the corporation referred to.
1t is also subject of especial interest
| just at this time. -
Financial Editor, The washington
| Times: VIII you be kind enough, In the
financial column OF Sundays Times, to
give a reason for the remarkably in.
crease In the value Of the property OF
| the Georgetown Gaslight Company,
from 1907 to 1911? il the rate OF In
creases continues, with the new build
ing on Wisconsin avenue, the valuation
this year must be over $,OOO.00:
| From 1907 to December 81, 1911, al
| though the valuation tripied. there
| was nothing new or additional about
| the plant that the casual observer
| could discover. even with magnifying
glass.
In 1907 the valuation was s51s,ls3.
| Three years later, in 1870 1t was s55l ,632,
| a very modest increase, but in the re-
port of 1911, the values suddenly jumped
to N.4S6, 1853 with apparently nothing ac-
ccmplished beyond the laying of few
| miles of suburban piping, everything
| else being the same as a year before.
Would you kindly inform us as to
| why and how this great increase in
valuation has come about?
IL. THORNTON"
Mr.. Thornton has asked a question
| that Is hard nut for layman to
crack. However, If conditions are as to
has stated, and the facts seem to be
| for the officials of the corporation to
answer. II they will undertake to make
answer, space will be given therefor.
1t Is a fact that some financial men
to optimism on the part of the direc-
| tors; 1t may be due to valuation infia-
! ton incident to the operation Of a
gas plant that is now able to furnish
| Its own gas. II may have been further
lifted by the fact that the Georgetown
| Gas Company has just declared its in
dependence Of It's largest shareholder,
the Washington Gas Company-its for
Mr.. Thornton certainly deserves a cor
rect answer and this should come from
a Georgetown official, say the presi-
dent OF the company.
Wherein lies the increased valuation?
, For more than seventeen years the
Washington Gas Company has owned
| the control Of the Georgetown Gaslight
| Company-in shares, a total of $780,
! or $40 shares more than the majority.
II has exercised its right of vote on
matters generally, voted, to authorize
the issuance of million 5 per cent
| lotment, to wit S167 900 CT the bonds and
/ disposed of them to a syndicate.
The Washington Gas Company years
| ago named Messrs. Ord and Colds
borough as their candidates for direc-
| tors OF the Georgetown Company and
| they were elected, while yet the latter
was director of the former company
| and prominent in its counsels. They
are still directors.
The claim is now advanced by a ma
jority of the directors of the George
town Gas Company that the Washing
| ton Gas Company has no right to vote
q afn No I0h 70 kLA laH TO-
being by inference II not by direct
claim.
"A violation of the law which for
| bids the holding of stock by one corpor-
alton in competing company Is the
way one interested party puts II.
But there is great difference. The
two companies are in no way COM
peting. both have their territory strict
ly outlined and marked for them by
| the act OF Congress. neither can in
wade the territory of the other. Rock
/. creek is the dividing line; Neither is
a competitor of the other. The Sherman
law does not apply. according to
Washington Gas man.
The Washington Gas people claim
that II they have no right to vote their
holdings they must therefore have re-
ceived their allotment of bonds in con-
nection with the recent issue, Illegally.
And yet by the advice of Washington
Gas Company officials the bond issue
was made Sl.0O0.000 instead of $1,000 900
as proposed.
A stockholder in the Georgetown
Company has suggested proceedings to
settle his rights to a larger allotment
pany illegally received its allotment
II is not claimed that the majority
stockhelder has tried to dictate. has
been aggressive or dominant.
Whatever the answer to this riddle.
whatever the answer to the inquiry OF
our correspondent, Mr.. Thornton: there
l., a. L,, al,
out rhyme or reason, and that is the
recent advance made in the price of
the Georgetown Gaslight Company's
shares.
1909 and 1910 and little better early
In 1911 1t has advanced to 1873. to $50
asked, the while the company can only
show surplus by close calculation,
share annually. less than per cent
on the market value. OF course. the
stock is closely held. but it is not a
good investment at the price, and but
fair at 60 for valuation.
In 1910 the surplus was something
like $40. For the last fiscal year the
returns showed surplus of about 500.
Had little more been charged to
been lessened by just that much.
The $3.50 shares owned by the Wash
inGton Gas Company cost less than 80,
considerable.
II IlSnt ne interesting TO KNOW tne
price at which the stock is being car
ried on the books of the latter corpora
tion.
Would it be better to have the hour
for the daily meeting of the Clearing
House at 10 o'clock rather than the II
o'clock hour as at presents?
There is an earnest movement at this
time to have the daily sessions earlier.
Baltimore and many other cities hold
their sessions earlier, make up their
clearings the night before. add the
early mail checks and, get through
clearings while yet the local clearing
house awaits the tap of II o'clock.
1t has come to be an irksome task
for some of the larger institutions to
take care of the clerical work incident
to the growth of business. while the
present hour Is maintained.
There are even suggestions OF two
Cleartngs a day. an early clearing for
the checks made up to closing the pre-
vious day and second for mail and
daily Clearings still later on.
In Washington the matter of take
back checks the return of checks 10
the various banks that have been DIG
honored for any reason, signature lack
ing. date wrong, etc, and mo funds"
!s important. The practice now is for
each bank to send back checks to the
bank depositing them, by messenger.