Evening star., 1926-10-31

The general gathering Of interested
parties. with the Commissioners OF the
District sitting as a Public Utility
Commission. the various associations
of citizens represented, and the gen
eral public with Special Counsel Clay
ton and the officials of the traction
compa MES, If they are present, to give
consideration to the entire utilities
proposition, will no doubt be very in
teresting. but whether 1t brings any
good and valid suggestions looking
toward a merger of the street car
properties is another matter.
For the last thirteen years mergers
Of the street railways have been ad-
vocated, denounced, urged and re-
quested under the urge of taxation
and perhaps other legislation to force
consent to uniflcation.
Just what advantages would result
from merger have not been dlscloS-
ed. The street car systems are alleg-
ed by the officials of the corporations
to be as good as those in any other
city and the service, as regulated by
the Utilities Commission. generally
satisfactory, while the commission has
the right to route the cars OF one
system over the tracks OF the otner
at will. ~ -~.
Universal Transfers Possible. 4
A merger would bring about univer-
sal transfers which would reduce the
income of the companies somewhat,
although perhaps not seriously. Inc
Capital Traction Co. is said to have
found the earnings too close to dlVl-
dend requirements for comfort ana
might not be able to stand the loss
without cutting the rate.
Uor eiy months avon longer there
has not been a word on mergers ex-
changed between the two traction
companies. There was some talk
based on a tentative proposition OF the
North American Co, largely interest
ed in the common stock of the Wash
ington Railway and Electric Co., but
the result was nil.
North American Interests.
It Is understood that the North
American Co., a. great holding ana
operative public utility corporation.
| has acquired a large common'stock
interest in the Washington Railway
and Electric Co., probably based on
the belief that by control of the COM
mon shares control Of the company
| might be obtained. But the preferred
shares have equal voting rights with
| the common, while there are out
standing s6,500,000 Of common and
$500, 900 of the preferred shares.
The market price Of the latter Is
about $50 a share: of the former. $3.50
| bid and $3.50 asked.
| They are both per cent dividend
| paying stocks. nor is there any i'm
mediate prospects Of any increase
| the growing use Of the third or fourth
| hand Fords and the temper of the
commission preventing, while permis'
sion for larger fares would further
increase the use Of the low-priced
| Fords. carrying loads Of workers to
and from work.
| What North American Go. Wants.
| 1t is an interesting question just
what the North American Co. wants.
but 1t is safe to predict that the dis
covery Of some plan by which the
Potomac Electric Power Co. could
be pried loose from the railway com.
pany and permit the North American
Co. to perfect title thereto, without
the attached street car corporation,
would bring a large reward
Much of the stock owned by the
| North American Co. was acquired at
$61 and a fraction a share and on
| the road up, with very little over the
500 a share mark; hence, the com.
| pany is not really q loser on its in
vestment by any means.
| Shareholders in local traction COM
| panies will interpose legal objections
| to any enforced merger proposition
| through added taxation or other pen.
| atty. holding that they have rights
assured for fair returns on invest
ments.
/ Gas Co. Bond Issue.
One week from tomorrow the
! So, ,00o, 900 Washington Gas Co. per
| cent issue will be offered for sub
scription through the banks. No
| price has been agreed upon, but the
| feeling on the street is that the bonds
| will be offered to subscribers at par
| or better. probably 101. with a slight
| concession to banks for booking
! orders.
The first block Of these bonds
marketed was sold by employees of
| the corporation by personal canvass.
! They were brought out below par.
| but were in high favor and sold sew
| eral points above the issue price. In
| anticipation Of this issue the price
| has dropped hack to 1914 bid, which
| is equivalent to a like bid for the
| new bonds.
The gas company alleges that 1t
| has been treated with scant courtesy
! by Congress in that it has not been
| able to increase it's capitalization in
/ all the years of it's existence. but
| must pay for the great extensions
| needed by bond issues to the increase
OF fixed charges.
| 1t is probable that the company
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