The Washington herald., 1913-03-20
Will NOT SELL
Big TRUST CO.
Continental Trust Directors
Refuse Offer Of $3.50 a
Share for Stock.
FAKE RUMOR ON STREET
Bears Aided by False Reper-Good
Activity on the Local
Market.
FAKE RUMOR ON STREET
BY 1. A. FLEMING.

BY 1. A. FLEMING.
The Continental Trust Company recent
ly received an offer of $50 a share for
80 per cent of its capital stock. or as
much more as might be turned in.
At a meeting of the directors of the
company held yesterday, a majority of
the stock being represented, the PROPOSE
tion was turned down.
President Scott had this TO say: The
Continental Trust Company is not for
sale. We are ready to buy any other
bank or institution that will sell at a
moderate price. but We are satisfied
with our property and propose to own
and control IL.
We have been in operation little
more than year. and while We are con-
Quoting the institution with conservatism
we are making excellent headway and
conducting as clean an institution as there
is anywhere. No. sir. will not sell
out
1t is understood that the proposition
made for the control of the bank includ-
ed an intent to change location in the
near future, to increase the capital stock
to Se.0o0OO0, and to change the name of
the corporation.
II is also understood that the bid
came from an interest that has contem-
plated opening trust company in
Washington for some time past.
At the directors meeting Capt. Scott.
son of President Nathan B. Scott. was
selected assistant to the president
Issued mt $40.
The Continental Trust Company issued
its capital stock at 10 share making
the capital s1.0I0OO9 and the surplus Sl00,-
OUc
1t is not known whether negotiations
have been opened with other banking
corporations. but the chances are that
there will be a new bank or trust COM
pany started within a short time, or
that one of the present institutions will
be acquired.
False Report.
\ false report started a real bear raid
in Wall street yesterday 1t was stated
in a news dispatch that the government
would at once begin suit against the
American Smelling and Refining Com
pany. and the renewed bear ac-
tivity under the club of the Sher-
man law shivered up and down
the spine Of the street. already quakinS
with continued heavy exports of gold,
tight money. and dread of the Sherman
clubs killing sweep. although up to date
il has killed nothing but prices.
The report broke Smelling TO 63 rs.
with a recovery before the close to s. IS.
Much Damage.
But the damage done by the cirulation
Of a wilful and vicious statement with |
oUt sCintiIla of truth in it. as emphat I'll |
Cally stated by the Attorney General |
who declares that he has mot consid- |
cred the matter" could scarcely be esti- |
mated. 1t was received with wild slee |
by the happy bears, who depend on mis- |
fortune for their success, and did its |
share to wipe out millions of dollars
during the next few hours, before it was |
denied
1t was one of the potential influences of /
the session. coupled with further exports |
of gold and tight money the world over.
Here and there throughout the list the |
bears smashed their way. making the
most of the fake Of the day, finding Un-
derwood soft for the big drop. with AZ
net loss when the session was over, and
they also took a crack at Westinghouse
for 3s., Third Avenue, Erie seconds, Lead. |
and Guggenheim.
And then when the denial of the fake
was confirmed, when the bears began to
think of their overeXtended shorts. and
the complete cessation of stock business |
in London and New York over from to-
night at the close of business until Mon
day morning. they turned to cover and
Union Pacific actually gained Il OF a
point net, rallying points from the low
of the session: Reading came back nearly
from low to a steady close; Southern
Pacific was %s higher. and Mexican Petro-
leum, under the hammer OF the bears,
rose y.
No London Figures.
Easter holidays begin with the tap of
the , o'clock bell this afternoon, New
York. London. and Washington closing
down until Monday. There can be no
covering over the holiday in London, and
the enormous short line outstanding to-
day suggests the possibility that the
shorts will settle many commitments,
take profits. &C, with perhaps consider
a BILE recovery before the end of today's
session.
The bears are sure of their position.
They hope for further prosecutions under
rial trouble. when the business of the
is good but going slow: they will =
lake all kinds of chances. but the low
figures of last night look as if the market
might be nearing an investment level
not at all. but near the point.
Business Revival.
There was a decided revival of busi-
ness on the local exchange yesterday
afternoon. Sales aggregated $4,000
bonds. face value, and 254 shares of
stock sold. This revival was unex-
pected, following Tuesdays absolute =,
neglect. II clearly indicated the con-
idence OF bankers and investors in
ocal securities. and especially in bonds,
or every bond was taken for locking
lway.
The feature of the market was the
lew high on this movement for Rail-
way common. and yet the record was a
lot the highest that might have been T,
obtained, as there were orders on the II
ioor for stock at 90k for common A
tock: not straight bids. but unexe- S,
uted orders. Two twenty-five shares o
we're recorded" at 80. Very little \
common stock could have been bought u
Except at much higher figures.
The preferred sold at Ssh.
Pressure on Gas.
| There was evidently some pressure on
Us The selling was met with orders
t s. SIS, IS l-2 and IS 3-S, and they were si'
IUickly filled. with more stock offered u
t IS 3-s at the close. 90
Union Trust 136. Citizens Savings Bank
D IL. Mergenthaler 2l3 L. Eastern Light .d
nd Power cold at Ill. sh
Bond sales were largo and of many NJ
ssues. Traction IS 1101-4, Gas Sc 1Oa vi
Il 5S LA 10 Dotor,onl