Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-06-05
UTILITIES co. IS
! IN DEEP WATER
Old Corporation Organized as
5, Vehicle for Consolidation
+; Defaults on $1,65O,O00.
POSSIBILITIES OTHERWISE
BY 7. A. FLEMING.

The Washington Utilities Company
the big pretentious corporation or
ganized in 1912 for the ostensible pur
pose of financing the needs of thu
Washington Railway and Electric
Company, but actually as a vehicle
utilities of Washington. traction com
panies, gas and electric light anc
power seems to have about ended Its
period Of usefulness. II 1t ever hao
any, other than as the reservoir for the
thousands of shares of Washington
Railway and Electric stock acquired ir
the big market boom of 1918.
Senator La Toilette then threw 8
monkey wrench into the machinery OF
the corporation when he put through
his measure providing that no pubic
utility of the District should own more
of any other local corporation without
the consent Of the utilities commits
sion. There were few senators pres
ent when this measure was ADOPTED
and the friends of the Washington
Utilities Company were simply knocked
The original capital OF the Wash
ington Utilities Company was $780,.
100000, but not more than 100000
was ever issued. This stock sold al
various prices to foreign ana local
capital. much of which still reposes
in their strong boxes: others
turned in common stock of the Wash
ington Railway and Electric Com.
pany. at various prices on the ROAD
up. in exchange for stock.
The story of the corporation as 10
its sales Of stock. etc. is on the Vir--
ginia state records, and has received
the approval of the Virginia state
corporation commission. This woulo
seem to initiate against any attemp'
to enforce payment by stockholders
between par value and the price al
which the shares were sold.
In addition to giving out its notes
for $1,000. 900. part Of which has been
paid, secured by $1,000 shares
Of Washington Railway and Electric
common stock. the company also acted
by the Washington and Great Fails
Railway and Power Company. Brad
ley Hills proposition upon which de-
fault has occurred. These bonds are
held very largely in New York city
with the exception of one moderately
large block held by a local capitalist
With this multiplicity of obligations
the future pathway Of the corporation.
as, indeed, its entire history, is rather
gloomy.
II Senator La Toilette had not disar-
ranged the machinery Of the corporation
in its initial stage it is within the pos
sibilities that the present complicated
situation with regard to the Washing
ron Railway and Electric Company and
the Washington Utilities Company
might not have happened. while in the
Same line of possibilities there might
have been one big public utility COM
pany. strong enough to stand without
the 2-cent transfer charge and able to
finance any needs Of the entire utilities
system.
On todays session of the local ex-
change business was rather slow but
with some interesting transactions
mixed with the usual trading.
A sale of Riggs National Bank stock
was made at $500 share. marking
the practical recovery of the strong po-
eition of this stock following its tenn
porary and unusual experience of a
few years ago.
American Security and Trust Com
pany shares sold at ZAP and Columbia
Graphopkone preferred at 319.
Lanston was rather soft. selling of
q full point from it's recent high fig
ures to 691a.
A small lot Of Capital Traction stock
sold at "a, and Railway preferred at
SAX. Washington Gas was steady at
IS to 53h.
Only bond sales reported were of
Railway As at $50.