Evening star., 1926-02-09
MERGER" STOCKS
SCORE ADVANCES
Railway Common at 230 on
New Movement With Trao.
tlon Selling at 107.
BY CHAS. p. sHAEFFER.

The thought that merger proceed
inss between tho Washington Rsab
way and Electric Co. and the Capatss
traction system are assuming ecrnes
oegree or definitenees persists. Noe
only In the minds of the layman anf
the casual observer 10 this opinion
prevalent, but 1t can be traced TO
members Of the Washington StooS
Exchange. where representatives OF
that august body are generally,
though sometimes erroneously, SUP
posed to be ION the inside" Of every
movement involving finances,
Unmistakable testimony of this
statement was offered on the Local
board this morning when CapitsI
Traction. which, 1t is recalled. failed
by a considerable margin to earn its
dividend last year, reached a now
recent-year peak Of LOT, and q neu
ouying movement started In Washing
ION Railway and Electric common
ms latter Issue, which is now com.
!oTably controlled by the North Amer
ican Co, sold To the extent of -
SHARES at 23e. when purchasers los,
interest. although the stock was o.
Tered az the same price as the session
closed. Capital Traction. on th.
other hand. was in good, orderly DE-
nand, as has characterized DEALING
In thus security III recent weekh-
halfway preferred. the other isssus
involved IN whatever merger negotia
t1ons are under way, was quiet at 81
Potomac Electric Power preferred wa
frm at 1881. ana Mercenthalsr game
fractionally to 21G.
Bonds were liStIess
Utility Company Reports Gain.
The 1926 annual report Of the Nj
"aukee Electric Railway and I.igh
Co.. the subsidiary of the North amer
team Co., which recently retired SC
100000 Of its first MORTGAGE borGe
without issuing any new refunding
bonds. shows S24.350.3z9 gross earn
lnSS Tor the year, an increase OF 81
/ 1888. and S2.s36.s32 net income
available Tor preferred and common
dividends, "a gain OF S562 ,S74 over 1924.
Net Expenditures during the yea
. foT ADDITIONS 70 The company S plants
ana system amounted 10 81 80. ga.
+ ne company continues 10 Obtain a
substantial part ~ its capital y.
/ QuIflnentS from sales Of preferreG
stock 10 investors in its territories
During the year s. POI 800 Of preferre-l
! stock was subscribed for. of which
Sl.t9t 200 ItIr value was fully paid an.
! %v"4 500 subscribed cor under the /,
! StA!lnent payment plan.
Electric customers added durirt
| The year We're 1871 and electric our
! put amounted To COO, ,I92.549 X W. b.
( which represents an increase Of 20 =.
! per '@ut over 1929. Business cond:-
! tlons II the territory served by tn,
| company We're reported. in genera
satisfactory ana better than had bee.
! anticipated.
! stock Reported Selling Well
The tuion Labor Life InsuraIl
( Go. which established headquarters
/ II this c!ty al few weeks ago. incideI.
( to campaign for the purpose !,
raising Il minimum Of 5000 300 capi
. tai reserve through the sale of stocL
20 unions aud members of uniCr-
/ only. reports that more than 70 py
! cent or the contemplated amount ha4
already been subscribed.
X Is believed 10y sponsors OF tn
company that the new company. witt
nearly 100000 prospects and with
th' incentive Uf the lowest possil7.
cost consistent with safety 10 COZ
pany ana insured, viii render an IL.
valuable service 10 IS poi:cyhUlders
Tn ,uiAua1y IL headed by Aiatthe.
Wall president ~ the Interuationa
, ihot0enEr.tyers Union OF North
America and fifth vice president ."
the American Federation of Labor
VINO. after Il survey. discloses that 81
per cent OF the labor world has NJ
I insurance protection other than the
small benefit funds OF the local or na-
| tional unions and that 40 per cent ar
covered for less than $500
Land Banks Surplus Grows.
Accumulated surplus and reserves
Of all joint stock land banks average
one third higher in proportion to bond
outstanding than the equivalent r
serve Of Federal land banks.
On october 81. 1925, The combine.
capital Of al joint stock land banks
was $4t.V4i.slS.4l. which is equivalent
to ii margin OF sol per cent or the
Sol2.t2l 400 Joint stock land bank
bonds outstanding on that date. The
share capital Is augmented by surplus.
reserves and undivided profits totalins
$s.sl9.067. making total capital asseta
of $5O,S63.9s5. or 9.s2 per cent on the
outstanding bonds.
Or October 81, 1925, the combined
capital Of the IL Federal land banks
was 53,oS0,485, which Is equivalent To
margin of SAB per cent on the Ss77.-
$4,000 Federal land bank bonds out.
standing on that date. The share cap
ttal is augmented by surplus and re
serves and undivided profits totalins
sl3,2il ,l55.99, making total capital as
sets OF s6o,331 .640.99. or SO per cent
margin on the outstanding bonds
The Federal land bank stock orig
inally purchased hy the Government
IN 1916, amounting to SS,S92,I3O, has
largely been absorbed by national farm
loan associations. On October g..
1925, 81, 1881 $50 of Government money
tstocki remained in the banks.