Evening star. [volume] (Washington, D.C.) 1854-1972, 1925-05-17
BOOK AND REAL MARKET VALUES
OF BANK SHARES ARE REVIEWED
Wide Differences NOted-Truder and Broker Bis
cuss Habits-More Speculation on Traction
Merger Probabilities.

at the quotations today. There are
many traders In the city who will
recall. with anger In three letters,
Columbia Graphophone. l had the
common at ~. sold 1t to take loss for
income tax report at 10, and bought
1t back a day or two later at IL, 10
sell finally at 8. and today there are
enough worthless Graphophone GER
tificates in the strong boxes of the
city today to paper the Auditorium"
There are exceptions 70 all rules"
said the broker. ct have known men,
and women, too, for that matter, to
look with scorn on a big handsome
profit. and declare intent to await fur
Their gain, and have also seen them
take losses on the same transactions"
1T Is a great game" continued the
old trader. "and a hard one to beat.
but there are lots Of excitement in
trying to beat 1t. Old-time bulls used
to declare that many mansions on
Fifth avenue were built by the bulls,
and were occasionally Quoted with
the assurance that. while true. as a
general proposition, here are some
mighty fine homes on the side streets
owned by bears"
Talk on Merger Possibilities.
Gossip around brokers' offices these
days is largely directed to the prob.
able merger Of the street railway COM
panies Of Washington. and the COM
plete change in control that Is likely
to follow the large accumulation of
their securities by the North Amer
! lean Co.
There is some speculation as TO
whether or not a new corporation
will be formed, and on the possible
treatment of old securities. There is
| also some suggestion that the pre-.
ferred stock of the Washington Rail
| way Co. may be retired and but one
kind of stock remain outstanding; also
| that there may be a retirement Of the
| 6 per cent bonds due in 1888, leaving
| but one class of bonds-the per cent
| mortgage issue.
There are outstanding bonds Of sub
sidiary companies for which the
Washington Railway and Electric is
| sponsor.
The IS are callab!e at 104, with
1914 the best bid at this time.
1t is probable that the North Amer
lean Co. is the largest single holder
of these bonds today. Their retire
ment may not be even remotely con-
sidered. as the rate is not high for a
bond that is not a first mortgage is
sue, and yet it should be possible for
the big 1916, 900 900 corporation to get
cash at a lower Extraordinarily
| right now. -r. -
Other Points Discussed.
There is just as much speculation
over the probable distribution that will
be made of the escrow cash of the
| Potomac Electric Co. to the common
shareholders of Railway and Electric.
| with perhaps a little more basis for
any estimates that may be made as
result of the knowledge that four
years dividends were passed during
| the lean period, when the shareholders
| received nothing. The last dividend
paid prior to the stopping was on a
| D per cent basis.
| Railway commons dividend never
! was cumulative, however. and but for
| the very general belief that one will
be paid and the rapid advance In price
1t would not be anticipated-this and
| the fact that the big escrow fund has
| accumulated.
| If unpaid dividends are made up, a
| distribution of 26A per cent would be
made. the ex on the stock at 116 would
be S924
However, it will be necessary to
await action, actual and final. before
the real facts in this interesting stu.
alton are brought to CONCLUSION.
Large Orders Booked.
| INAUGURATION or service over
million-dollar transmission line to one
OF the largest Industrial power users
| In the country was announced Friday
by the North American Co. The
contract involves the purchase of
~ 900 900 of electric power during the
next 10 years by the Pittsburgh Plate
Glass Co. from a North American
subsidiary. the Union Electric Light
| and Power Co. of ST. Louis.
| More than 50,000,000 k. W. h. of
electric energy viii be delivered an
nually from the new Cahokia station
on the Mississippi River to the plant
Of the Pittsburgh Plate Glass Co. at
Crystal City. Mo-. over a newly COM
pleted high voltage transmission line
35 miles long
] This new customer of ours will
| use almost as much power each year
! in the city of st. Louis said Presi.
dent Frank L.. Dame of the North
| American Co.
Wholly aside from the interests
| of the North American. system, in
| auguration of this gigantic power
service may be regarded as another
| triumph of central station service
over the isolated Industrial plant.
Before Charles w. Brown signed this
contract as president of the Pitts
burgh Plate Glass Co. he engaged an
internationally known consulting en-
cheering firm to make an exhaustive
| investigation as to the respective
merits of central station service and
the service obtainable' from an in
dividual power plant. They found 1t
| would be more advantageous to use
| Cahokfa power than to build new
rnIo nj ut