Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-11-28
BIDS ARE INVITED
FOR NEW GAS BONDS
Tenders May Be MAJ Up to the
Close of Business Decem-
Der Is.
New York Stock Exchange Reopen
ing for Bond Trading a Success.
An Explanation.
BY A. FLEMING.

The 100000 Washington Gas Com
pany per cent bonds to be offered to
the highest bidder under the ruling Of
the utilities commission, will be of the
denomination Of $500 each. Coupons are
payable semf-annually on the first day
o. May and November, are dated No
vember 1. 1914, and accumulated inter-
est must also be paid by the buyer.
These bonds are part of an issue OF
s5,20O.OOO authorized by the sharehold-
ers some years ago. of which s3.460.000
have been issued, shareholders then
having the right to subscribe at par
and interest.
Between January 1, 1910. and June 80.
1914, the company has expended in bet
terments, improvements, acquisition of
additional property, etc, S915.21O.25. OIL
which amount $260.OO0 has been pro-
vided for by the sale of bonds to share
holders. leaving 100000 uncovered. To
reimburse the treasury Of the corpora
ton the forthcoming bond issue Is to
be made.
Proposals to purchase of any part of
these bonds will be received up to the
close of business December Is, 1914. at
the offices of the company, and a de-
posit of 10 per cent of the amount OF
the bid Is required, which will be re-
turned to unsuccessful bidders. The
company reserves the right to reject
any and all bids.
Why Not an Unrestricted openinga
J. S. Bache & Co. Of New York city, in
their monthly circular, have this to say
In reference to an unrestricted reopen
ing of the New York exchange:
The question is constantly asked:
Why cannot the stock exchange open
1t will have to be opened some time
why not now" The answer is briefly
as follows:
Thousands of millions of our securi-
ties are owned abroad.
Tremendous expenses and losses
there, through the war. will force
many foreign holders to sell.
IF these securities come on the mar
ficult or impossible for the country to
maintain the gold standard.
Eventually. probably. some arrange
ment for deferred payment will have
to be made.
1.-The situation would be less difficult
II our securities were attractive and in
the greatest demand for investment.
But this is not the case with regard to
railroad securities. which make up a
very large proportion of those held
abroad. The earning power Of railroads
has been crippled to such an extent by
the government that the largest in
vestors have withdrawn. discouraged,
from the railroad security market. and
holders abroad also regard them unfa-
vorably on this account.
Increase in railroad rates and dis
position on the part Of the government
and the various states to show fairness
in the future would be of the greatest
benefit in building up the railroads and
restoring their credit. Their securities
would then become highly attractive.
This would have much effect in decid-
ing foreign holders not to sell and
would make the problem of foreign
sales much less difficult to meet"
Aggregate bonds to the par value OF
$4,000 were traded in on the New
York exchange this morning. While
there was restriction, it did not seem
necessary. Minimum prices were es-
tablished and posted Sales below these
prevail of a committee. Transactions
were for cash or in the regular way.
Prices were generally on a parity
with quotations that have been sen,
out from brokers' Offices. and there
were but few declines OF consequence
from the July 80 figures. save in the
case of the bonds of one or two south
ern railroads, where the earnings have
been showing big reductions, due prob.
ably to the restricted movement OF
cotton.
washington investors were interested
in the reopening and the tickers were
watched closely, much satisfaction be-
ing expressed that the selling had been
so readily absorbed. Brokers reported
more buying than selling orders. but
investors were not especially urgent in
their demands, feeling out the market.
If today's action is repeated, with a
similar steadiness in prices for a few
days, investors will be likely to buy
more literally.
]. w. Hartman Of Hartman & Co. of
New York wired their local manager,
G. B. Chapman, as follows:
The action in the bond market was
entirely satisfactory to financial in
terests and justified the confidence
showed by the governors in ordering
the reopening.
Philadelphia and Washington will re-
sumo trading Monday. the former in
local stocks only and the latter for
bond trading.