The Washington times., 1914-05-20
STRENGTH SHOWN BY
CAPITAL TRACTION
Price Levels Remain Firm, A.
though Trading Is Light, on
Local Exchange.

Trading on the Washington Stock Ex-
change today continued comparatively
light. but price levels remained hrm-
capital Traction, which returned 10 par
yesterday after a slump during the past
week, showed more strength. Inc hrst
sale, a block of sixteen shares sold at
Par, but an additional lot ol seventeen
shares brought 100 Is.
Washington Gas was comparatively
inactive, but the six snares disposed Oh
commanded the same price that pre-
vailed yesterday, "a "a. Washington
Railway and Electric preferred showed
a gain over the last sale Eighteen
shares sold up from "a is to 81 81.
Capital Traction SIS were the feature
of the bond list, $500 worth bringing
sisted of s2,Ooo worth of Washington
hallway and Electric as at So.
On the strength of the announcement
of the declaration of the regular quar-
terly dividend of 2Ia per cent and an
extra dividend of Z per cent by the
stock was in demand, but no sales were
recorded. The dividend is payable on
June 80 to stockholders of record June g.
The recent proposal of the Commercial
Fire Insurance to its stockholders TO
Cu-tail the coJnDany's stock of 80 per
cent with a view 70 increasing the sur
illus, is now threatened with legal OBJ
stacles. Certain of the stockholders
resident in the District of Columbia
have retained Attorney Jackson II.
Ralston to contest the proposed chanSe.
The Commercial, with the First Ma
tional Fire Insurance Company, was the
subject of a Congressional Investigation
less than two years ago as result OF
the valuation placed by the companies
upon the Southern building. of which
they are joint owners. This inVestiGa-
tion IS said to have seriously handi-
capped the Commercial, causing it TO
lose many of its agents and policy
holders. Now, however, the officials say
that they have regained the full con-
fidence of both the agents and the in
suring public.
The company, however, having only
$4,000 surplus, finds il difficult to eX-
pand its business and at the same time
meet the reinsurance reserve require
ments of the States in which it operates.
To comply with the reinsurance re-
Quirements it is necessary to draw
largely upon the company's surplus. As
means OF overcoming this handicap,
IT was recently proposed TO reduce the
amount Of capital and place the amount
Of the reduction in the surplus. This
was to be done by paying the stock
holders a 10 per cent dividend and give
10 them certificates equal to their pres
e1t holdings at a par value of s. 50 per
share in exchange for the certificates
give the company about s2S5,00O cash
capital and a surplus of s2Ss,000 with a
reserve approximately $4,000.
The stockholders favoring this plan
maintain that by erfecting sucn
change the company's business could
be greatly promoted, and at the same
time the stock would-soon be on a div:-
dend paying basis. --.
The officers of the company nave dis
tributed letters to the stockholders
throughout the country asking a vote
on the proposal, and IL IS said that al
ready more than 50 per cent have ac-
quiesced. The opposition is said to be
centered chiefly in local stockholders
who have brought the question to tue
attention of Insurance Commissioner
Nesbit with view of having another
investigation made
Hearings on the Crosser municipal
ownership bill will be resumed before
the House District Committee tomor-
row and prominent electric railway men
are expected to appear in opposition TO
the bill. So far no one has appeared in
support OF the measure and local utility
and financial men are asking whether
the committee has anyone scheduled 10
speak with authority in support of the
proposition to municipalize the public
utilities of the District
There has been and will be much eX-
pert testimony endeaYoring TO show
that the Crosser bill is impractical and
undesirable legislation and proposes a
departure that would fail to do as eX-
Dected. but the other side of the case,
Z is pointed out. is yet TO be demon
strated. Neither the Commissioners.
who have como out in favor of munich
pal ownership. nor the author oc the
bill has brought any testimony TO sup
Vort the proposition.