Evening journal., 1913-04-14
Sl4OO STOCK
in LIGHT and
RY. FOR 1910
Another Burden Put on People
by National Properties
COmpany'S Financing
TRACTION COMPANY MUST
MAKE UP BIGGEST SHARE


1t is useless for the Wilmington and
Philadelphia Traction Company TO
set up a cry that the Peoples Com
pany is seeking a franchise for
speculative purposes. as a circular
Just issued by the National Properties
Company, which controls the Will
mington and Philadelphia Traction
Company, shows that it is selling
S14OO Of stock for 1870, and the people
of Wilmington will have to foot most
of the bill for this kind Of financing.
The National Properties Company
recently acquired control of the Will
mington and Philadelphia Traction
Company, and also owns or controls
the Pittsburgh City Light and Power
Company, and the Waver Company Of
Tonopah.
One of the main reasons given by
the Traction Company's interests for
opposing a franchise grant to the
Peoples Light, Heat and Power Com
pany, with its 100000 capitalization,
is that the franchise is desired for
speculative purposes. The circular
issued in behalf Of the National
Properties Company indicates the
speculative features that entered into
the National Properties Company ac-
quirine the Wilmington and Philadel-
phia Traction Company, and shows
that a further issue of preferred and
common stock has been made, the
burden Of meeting dividends on which
will have TO be carried by the people
of Wilmington, inasmuch as the Will
mington and Philadelphia Traction
Company is the principal holding
of the National Properties Company.
circular issued by two banking
and brokerage houses offers for sale
81 $4,000 National Properties Com
pany six per cent. cumulative pro-
ferred stock on the terms Of $1,000
preferred stock and s400 common
stock for 1870 In other words,
81 400 Of stock in the National Prop
critics Company, the principal holding
of which is the Wilmington and Phila-
delphia Traction Company, and the
railway and electric light companies
Il controls. is offered for 1910. On
$1,000 OF this preferred stock, ,divi-
dends OF six percent annually are
70 be paid, and the people Of Will
mington are expected TO meet much
of the dividend charges
To bond and stock issued in
amounts Of hundreds of thousands
n not millions Of dollars already on
the railway and electric light proper
ties in this city, formerly controlled
by the Wilmington and Philadelphia
Traction Company, and now CON
trolled by the National Properties
Company, there is to be added a
share of the S1,649.000 stock Issue
now made by the National Properties
Company.
This indicates the process Of water
ing Of the Wilmington railway and
electric properties, merely another
dlution 10 the financial soakage that
has been poured on the Wilmington
railway and electric light properties
in the course Of the various specula-
tive deals and changes in ownership
In recent years.
On these additional issues of stock
the consumers of electricity and rid
ers on the cars Of the Wilmington
and Philadelphia Traction Company
have to meet the piling up and an
nually increasing charges and pro-
vide the dividends and swollen capi-
talizations, and interest on previous
bond issues In addition 10 the in
Wilmington and Philadelphia Trac-
ton Company already has had ia
meet out Of its receipts from the con.
sumers and patrons OF Wilmington
the people now will have to make VI
share Of the charges to be created
by the issuance OF this latets S1,649..
600 Of National Properties Company
stock and also will help to enhanc,
the value of the s140e OF stocl
that is sold for 1910. In order tC
make it more valuable to the specu
lator.
In the face Of this new fnancia
lead imposed on the people Of VIII
mington by the National Properties
Company as a successor TO the vii
nington and Philadelphia Traction
Company, there Is surprise that thu
Traction Company interests shoul,
attempt 70 create an impression tina
4 the Peoples Light. Hei.t and Powe
4 Company capitalized at only s500,00
4 is seeking a franchise merely TO
4 speculative purposes.
n The circular shows that the Ma
4 tional Properties Company has ia
sued 81 SAG 900 of six per cent cumu
h lative preferred tsock and s2,43S, 90
OF common stock on the three cor
q panies It controls-the Wilmington
4 and Philadelphia Traction Compan,
n the Pittsburg City Light and Powe
a Company and the Water Company @
81 Tonopah.
The company has working capita
81 ample for all its present needs" say
8 a letter of Van Horn Ely, presden
Il of the National Properties Companl
q in the circular. Celebrating on il
q control of the Wilmingto nand Phil
& adelphia Traction Company, Mr.. I'll
& says:
"The Wilmington and Philadelphi
Traction Company controls by stoc
ownership. or by leases running 80
years with the exception OF tw
i leases which run for 90 and 9S year
respectively the following con
pRnies:
wilmington City Railway Con
pany.
"Front and Union Street Railws
4 Company.
Gordon Heights Railway Compn
Wilmington and Edgemoor Electr
Railway Company.
Wilmington City Electric Con
pany.
Wilmington Light and Power oCn