The Washington times., 1913-11-30
GOSSIP ANENT SALE
OF j. S. TRUST CO,
Complete Taking Over by Mum
sey Company of Interest in
Local Circles.
By CARTER FIELD.

With the complete taking over of the
United States Trust Company by the
Munsey Trust Company, which was ac-
complished in name Saturday week
age, but which was accomplished in fact
this week. the most interesting topic
in Washington financial circles, outside
Of the investigation by the Public Utili-
ties Commission into the extra dividend
declared by the directors of the WASH
ington Railway and. Electric Company.
is the value of the stock of the United
States Trust Company.
It is understood that negotiations for
the sale of this stock were conducted
on basis of s66 a share, while one
large broker, who had been active in
the transactions in this stock for long
time, said yesterday that he had a bid
for 500 shares Of the stock, or any part
of this amount, at $50 a share, though
he considered this price far too low.
1t is generally admitted that the
stockholders of the United States Trust
Company need only be patient, and they
will get a considerably larger sum than
s66 share out of their holdings, as it
is pointed out that the assets of the
company could scarcely have shrunk
to a point where, liquidated. they would
not produce more than that figure. At
$66 share, the total Shrinkage In values
would be Si16,6t6, and it is not believed
that the capital of the United States
Trust Company was impaired To any
thing like that extent This shrinkage
does not include the surplus of the COM
pany, which would increase the actual
shrinkage to approximately half mil
lion dollars on a s66 share valuation.
Then, too, II must be considered that
the liquidation need not take place at a
forced sale, or even in a hurry, but may
be spread over a period Of years, which
would naturally result in better prices
being obtained.
Local financiers are comparing this
ers' National Bank. of Baltimore, which
was absorbed by the National Bank of
Baltimore, about two years ago
Strange to say. several directors of the
in the National Bank of Baltimore, and
aided in guiding its policy at that time.
The Commercial and Farmers was in
no dire trouble, as was the case of the
United States Trust Company, but 1t
was suffering from dry rot and the ac-
ceptance of several of its officers of
positions with other companies made II
necessary either to attract new men, or
else to go out of business. 1t was de-
cided, after a series of negotiations.
that the National Bank of Baltimore
should take over the Commercial and
Farmers National, but that 1t should
pay for the stock, not fixed price, but
whatever the assets would bring. So
the National Bank of Baltimore took
charge of the assets. selling them
the stockholders of the Commercial and
Farmers National Bank.
While no definite announcement has
been made, it is generally believed that
this is the plan in the absorption of the
United States Trust Company, and ii is
scarcely likely. if this is true. that the
stockholders in the United States Trust
Company win not receive eventually
considerably more than s66 share.
5 A AeeneraIly ressimistic view of the
effect or the stock of the Washington
Railway and Electric Company of the
investigation now being conducted By
the Public Utilities Commission is ta-
ken by the shareholders. 1t is hard for
many of them to see how the lnvesti-
cation can help hurting the value of the
stock, and, indeed. this has been done
already, it only remaining to be seen
whether the full effect of the investi-
cation has been discounted in the drop
from around oS, which it reached Just
before the investigation, to about Sc,
where II is at present.
If it should prove that the dividends
of the company will not be checked by
any action which the commission may
take, the price of the stock would natu-
rally again seek its higher level. as a
stock which pays 6 per cent with the
full approval Of the Public Utilities
Commission would naturally be worth
more than 50, even in these days of low
prices on the New York market.
There are so many ways that the
profits, and consequently the dividends,
of the company may be injured by the
action of the Public Utilities Commits
sion, however. that some of the stock