Evening star., 1916-08-03
LOCAL STOCK Market
FAIRLY ACTIVE, FIRM
Railway 4s in Good Demand and
Aigher-washington Gas Steady: ,
Lanston Dividend August 81 Z
Plans Initiated for Reorganization
of Lewis, johnson & Co.-Circular
:. to Creditors-New Listing.
BY I. A. FLEMING.

Business on the local stock exchange
was much better than the average,
fairly large amounts of bonds and a
modest business being transacted in
stocks. a
Railway As were in high favor. SELL
ing at SEX to s2$; City and Suburban
5s were wanted at 1o2 I. Capital Trac-
tion 5s sold at los.
The introduction of a measure in the
Senate providing for 75-cent gas for
Washington Gas Company customers
had no effect on the stock of the cor
poration, which was firm at 1Ss for
ten shares with quick rally to 1919
for a twenty-five-s share lot.
number of small lots of Mergen-
thaler changed hands at 1901 to 16o1s.
An unusual sale was recorded when
ten shares of East Washington SaV-
ings Bank stock sold at L.
Lanston Dividend.
Directors of the Lanston Company
have declared the regular quarterly
dividend of liz per cent. payable
August 81, to shareholders of record
August Is.
This action will give $4,000 with
the first of September.
List New Securities.
On application of the United States
Realty Company. local corporation,
the securities of this corporation,
stocks and bonds. were listed on the
Washington Stock Exchange and VIII
be quoted hereafter.
yuorL;,- Gov paorra mia fion
Certain creditors of Lewis johnson
& Co. have been considering the advis-
ability of re-esta bishing the firm. to
be operated by committee of cred
itors with a view of cleaning up, in so
far as possible, the liabilities of the old
company.
The proposed plan. which is yet in
embryo. proposes that the firm of
Henry & Co. or Lewis Johnson & Co.
be organized and common stock issued
to the creditors to the amount of so per
cent of their claims against the old
firm.
A small amount of preferred stock
would also be issued.
1t is also suggested that a compro-
mise in bankruptcy as to Mr.. Henry be
arranged. Nr. Woodruff having receiv-
ed his discharge; that the creditors re-
lease Lewis johnson & Co. for the
stock certificates of the new corpora
ton, in order that Mr.. Woodruff might
hold a seat on the New York stock ex-
change, as this association does not
recognize a discharge in bankruptcy.
The preliminary plan suggests that
the creditors preferred stock would ad-
vance a small percentage, say per
cent in cash, as their contribution to-
ward the working capital. and not only
receive double the amount of their sub
scription in return, but preference as
to dividends
A desire to assist in working out
influences to induce creditors to again
resume business relations with the for
mer firm as represented In the new COM
pany.
To prevent complications that might
arise because of the indictment of csr-
tain of the parties. it is suggested that
the creditors, in their general interest,
secure the quashing of the indictment
With $4,000 raised by 5 per cent
assessment on claims of $1,000,000 it
could be used as the basis of pur-
chase of seat on the New York ex-
change. on which $4,000 would be paid
and the balance borrowed, with $4,000
for seat on the local stock exchange,
WHICH might be saved by the reinstate-
ment of Benjamin Woodruff would
leave $4,000 to 900 for working
capital, and this deposited with a num-
ber of banks might lead to considerable
business
Average profits annually of Lewis
johnson Co. based on the showing of
the year 1905 to 1918, inclusive. amounted
to S44, 4,71S37-from local commissions, $5,-
1919: from New York commissions, $24.-
794.03. and from interest, $14.s1637.
II is proposed, ii this settlement should
be arranged. to place in escrow. in the
hands of trustees. sufficient OF the COM
mon stock to cover any preference which
might be claimed, at the rate Of fifty
cents on the dollar. that such credi-
tors may retain the advantage Of pref
erence for litigation. After the amount of
the preference is decided they will receive
common stock for their claims equally
with the creditors who originally accepted
fifty cents on the dollar.
Copies of the circular have been mailed
to all creditors and those who are willing
10 subscribe to the preferred stock In or
der to raise the small capital required are
asked 10 join 'in the only opportunity
which the situation affords for getting
back any part of your claim" to SO notify
j Kenyon Miller or L. Randolph Mason.
Based on the business as shown by the
eight-year average Of Lewis johnson &
Co. the promoters expect that there will
be surplus of si6,97s.37 annually. and
they also predict period Of great pros
perIty, anu assistance from Wall xfreat