The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1913-01-29
"SULHR DAY"
ON WALL
Moderate Reforms for Stock
: Exchange Meet Approval.
Can Shares Lead.
SHARP ADVANCES MADE
Local Securities Steady-Georgetown
Gas Company Will Sue-Balti-
more Bonds.
SHARP ADVANCES MADE
BY i. A. FLEMING.


Stock Exchange yesterday
From the start 10 the finish the mar
ket showed more strength than any one
. had expected. There was nothing else
TO ascribe the advance to other than
the moderate. sage, and worthy reforms
suggested by Gov. Sulzer, and q special
lied movement OF great strength in Can
issues, under the inspired buying by Dan
Reeds brokers. Il was stated With more
less specific reiteration that a plan
had been prepared by which IL would
be possible to pay all or nearly all of
the back dividends on Can preferred.
perhaps through Il new issue of Can
common, and on the strength OF this
there was an 50 point raise in the pre-
ferred, while the common moved up y
point.
For once the Can shares were the lead
ers OF the entire market, moving more
freely than all others.
From somewhere came a report that
President-elect Wilson would again adj
dress capital and that this time modera-
ton, conservatism, and caution, in a
prepared and studied effort, would be
likely TO remove some of the uneasiness
caused by previous addresses.
There were probably other influences
than those mentioned, but it was diff
cult to read the signs, other than the
fact that the street expects peace, and
the easier condition of the money mar
ket have made a run in of the shorts
possible, in so far as small percentage
of the short line mas covered.
These conditions have made the short
interest exceedingly nervous, and they
are expected to run almost any minute.
Union Pacific and Steel common each
held a point gain, North American,
Northern Pacific, Smelling, Copper, and
many other stocks were 1a1k higher. Har-
vester. on the announcement of the purg-
ing movement, rose 1873, and Sloss-
Sheffield advanced II. Tobacco stocks
We're strong.
The street has been so uniformly bear
ish that the squirt of Tuesday and the in
creased activity 10000 shares came as
an unexpected relief to the tired market.
Many traders changed position, some for
a whirl ending with the day-taking
profits in the last hour, and this brought
about y point reactions from high
Money was plentiful at 23ta3 per cent.
Will Sue To-day.
The complaint Of the Georgetown Gas
Company officials against the Washing
ton Gas Company, anent the alleged IL
legal holding of the Georgetown Gas
stock by the former, will probably be
filed to-day.
1t is understood that the Georgetown
Gas Company will demand a decision as
10 the legal owner to the $50 shares of
Georgetown stock, which they claim is
held Illegally by the Washington Gas
Company"
The suit by T. L. Rume is for the dis
tribution of the Georgetown stock to
the shareholders Of the Washington Gas
Company.
Mr.. Hume has made no move toward |
compromising his suit, but the George |
town company is determined to force |
the issue, having reached this conclusion |
because of the refusal OF the Washington |
officials to take their case into court and |
demand the right TO exercise the control |
THAI majority holdings should have a |
right to exercise
1t is just possible that President Letter |
may be asked TO state the company's |
position on this matter when the share |
holders meet in anuaI session. The fact |
that proxies have been sent in does not /
mean control, as the presence of the |
fhareholders in person vitiates the proxy. |
The Washington Gas Company has
actually been offered $50 for their hold
tngs OF Georgetown stock, and the COM
parison with this bid and the market
value of Washington Gas, a dividend
Garner and payer, with double the ter
ritory, and main mileage, needs explana-
ton.
Local Securities.
1t was not an especially active day
on the local exchange and yet prices
were reasonably firm. Railway preferred
sold at 30 S-4a91, the common at S.
Washington Gas showed a frmer tone
at 81 S-SaS4 IS for odd lots for invest
ment. Under some speculative short
selling this stock has presented a firm
front.
Bonds were a little firmer at 10 10 for
Capital Traction 5s, s3-4 for a small
bond. Railway IS. and 101 3-S for Potomac
Electric IS.
The bid and asked prices viii indicate
the bank stock market, there being no
sales. The general impression is that
there Will be a better demand after the
payments OF the $4,000 interest and
dividend moneys with February 1.
Buys Baltimore Bonds.
In connection with the new financing of
the Consolidated Gas, Electric Light and |,
Power Company of Baltimore It was
learned yesterday that the company has
arranged for the sale of S2,3O0,0OO Gas
Compay AZ per cent bonds to Messrs
Lee. HiGginson & Company, of New
York. The securities disposed of form
part of the collateral behind the remain
ing issue of s,00O.e00 short term notes,
100000 of which have already been
called by the Gas Company. While no
official information was forthcoming to-
day. 1t is understood that the proceeds
from the sale OF the bonds will be utilized
TO retire an additional amount OF the
notes.
At the previous sale OF Gas Company
~ per cent bonds the price received by
the Gas Compay was around IS, and it
is believed that the bankers paid about
this price for the bonds which they have
just purchased.
\ member of the firm of Lee, Higgin-
son a: Co. was in Baltimore Tuesday for
the purpose of organizing a local syndi-
cate which will offer the bonds for sale.
II is understood that at least five local
banking houses will figure in the syndi-
cate.
Stockholders OF the Consolidated Gas,
Electric Light and Power Company, at a
special meeting held Tuesday, authorized
an amendment to the charter OF the cor
poration relating to the issuance of de-
debenture stock. bonds, notes,
and other evidence of Indebtedness, thus ,
for the increase of the total ,
amount Of common stock of the company
authorized TO be issued and outstanding !
from SS.500.ooO to S14,S6o.05i. AS before /
stated in this column, the additional COM
mon stock will be utilized to retire the
preferred stock OF the Gas 5
Company. Shareholders are given the !