The Washington herald., 1913-03-13
UTILITIES CO.
IS IN ACCORD
Big Corporation Believes IN
the Commission and Act
Creating 1t.
REDUCES ITS HOLDINGS
Markets 1000 Shares-ls Not a For.
eign Company-Loeal Stocks
Firm-Gossip.
REDUCES ITS HOLDINGS
By 1. 4. FLEMING.

BY i. 4. FLEMING.
The Washington Utilities Company
welcomes the appointment of Utilities
Commission. and the enactment of the
law for its existence, La Toilette amend
ment and all. Moreover. the company
places itself in the care of the COM
mission, as one of the utilities of the
District of Columbia, owning and oper-
ating the lines formerly owned and
operated by the Washington-Nirginia
Railway Company"
This statement was made by an in
slider" in the Washington Utilities Com
pany.
Continuing he said
Moreover the Washington Utilities
Company has disposed of 1900 shares OF
the capital stock of the Washington
Railway and Electric Company and thus
placed itself in full harmony with the
La Toilette amendment to the law.
We found that We had 1000 shares
more than - per cent Of the capital
stock of the Washington Railway and
Electric Company and sold it,, to good
advantage
Following out the suggestion given. it
doesn't require expert effort to indicate
that the Washington Utilities Company
is to-day the owner of G0,0oo shares of
Railway Company and that it was at
one time the owner of $1,000 shares. but
whether of common or preferred is not
evidenced
Not Foreign Corporation.
The Washington Utilities Company is
rot as has SO frequently been referred
to. A foreign corporation. 1t has its
charter from Virginia. but through the
acquisition of the charter rights and
privileges of the Virginia
Railwa- Company. il becomes local
utility. possessed of the charter rights.
from Congress. heretofore owned by the
Washington, Alexandria and Mount Yer
non Railway and the Washington and
Falls Church Railway Company. 1t also
assumed the broad rights of the Wash
ington- Virginia Railway Company char
ter-one of the brOadest ever granted
authorizing tn" company 10 buy stocks
and bonds of other corporations, lend,
borrow. and merge, and operate extern
siveIy in various lines.
II therefore possesses direct authority
from Congress to operate a street rail-
way line having its local terminus at
the post office i'm the city of Washington.
May Expand.
The Washington Utilities Company
NAV with The consent of the Utilities
Commission provided il has the other
details arranged. form other combina-
tions or mergers. but ii Is not likely
that any expansions will be undertaken
at this time.
Local interests are anHiously awaiting
the time when the securities will be
listed on change Probably this might
have been an accomplished fact ere this
but for the tightncss of the money mar
kat elsewhere and the condition Of the
securities markets.
Not Deemed Necessary
II is not believed that the Washington
1-tiIities Company in disposinE of 400
shares Of Railway and Electric stock took
the action because il was deemed neces-
sarV Both the purchase of the stock OF
the Washington Railway and Electric
Company and of the Observation-Disclosures
Railway Company were accomplished
facts before the passage OF the utilities
bill or its signature by the President
4 law cannot disturb conditions exist
ing before its enactment. This view Is
held by some of the best legal talent In
the District
What would happen in the case of the
Chesapeake and Potomac Telephone Com
pany il the utilities law was retroactive.
Here is the status OF the case:
The Telephone Case.
On June %. 1885,. the Chesapeake and
Potomac Telephone Company acquired all
the rights and franchises of the National
Capital Telephone Company. of Washing
ton, D. c. At the same time the Tele-
phone Exchange Company. of Baltimore
was purchased. In November. 1903. the
Reu Telephone Company, of Pennsyl-
vHnia, bought for cash sufficient amount
of stock AT par to enable the Chesapeake
and Potomac Telephone Company to pay
all notes and buy property in Washington
and Baltimore.
In 19GS the Bell Telephone Company
acquired practically all the stock of the
Chesapeake and Potomac by giving one
share of Bell for one and onc-half shares
of Chesapeake and Potomac stock. The
Bell sold out to the American Telephone
and Telegraph Company in 1909. leaving
the chesapeake and Potomac Telephone
Company owning only the entire capital
stock of the Maryland Telephone and
Telegraph Company.
If the La Toilette amendment is retro
active for even weeks II must also be
retroactive for years
If sale of shares of any stock to
over one-twentieth of capital stock in d
corporation was legitimate before the
utilities law was enacted. it would seem
but reasonable to believe that it must be
legal now.
Local stocks.
The price on Railway common was bid
up on change yesterday s. 5-S. with moth
ing offered under s. IS this after an early
sale at 81 L. The preferred stock was
rather slow at 81 rs.
The general market was slow. Mer-
genthaler was 213: weak at the close.
Only odd lots of Washington Gas were
sold. these at s. LAS l-2.
Chesapeake and Potomac Telephone 5s
brought la5.
viii FIJI Vacancies.
Three of the directors of the CONNER
ciaI Fire Insurance Company have re-
signed-John W. Childress. Allen c.
Clark, and w. r. Roberts. They will be
acted upon at the next regular meeting
of the board of directors, when the va
cancies thus caused will be filed.
Wall Street Market.
With the opening yesterday stocks
moved up sharply. The feeling as to
the situation at home has become more
favorable. The slowness of the new
Executive in making changes has led to
the belief that radical movements will
be made slowly and that this will be
evidenced in all departments and in fu-
ture legislation.
Money is 5a5 1-2 on Wall Street Stocks
have been loanjng at per cent.
The strength continued until after the
noon hour when the announcement was