Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-07-24
MARKET TERMINAL
MERGER 0. K. ASKED
Provision for Expansion
Sought in Letter Sent to
Stockholders of Firm.
BY EDWARD C. STONE.

Letters were mailed yesterday to
the stockholders of the Washington
Market Co. asking approval of a mer-
ger plan with the Terminal Refrigerat'
ing & Warehousing Co., subsidiary
the new organization to be known as
the Terminal Refrigerating & Ware
housing Corporation. The proposal to
form a third company chartered under
the laws of Delaware calls for an aV-
thorized capital stock of $1,000,000, TO
be divided into 10000 shares, with
par value Of $50 per share, or precisely
the same as the outstanding stock of
the Washington Market Co. Conse-
quently, no new financing is desired.
While the Washington Market Co
is in a sound condition, it's business is
greatly hampered and restricted by
it's Anticipated charter, the commu-
nication says, and it is to provide for
normal business expansion that the
reorganizationz is favored. The COM
pany'S present business consists of
the manufacture and sale of ice, cold
storage of perishables. dry storage of
merchandise, freight distribution and
general trucking.
Merely an Exchange of Stock.
The new company is to exchange it's
stock, share for share, for the present
stock Of the Washington Market Co.
When this exchange has been made
the present stockholders of the mar
ket company will be the stockholders
OF the new company and the new
company will own the stock of the
market company. Meanwhile the new
company will hold in trust for the
Washington Market Co. all of the
stock OF the subsidiary Terminal Re-
frigerating & Warehousing Co.
Application will be made later for
listing of the stock of the Terminal
Refrigerating & Warehousing Cor.
poration on the Washington Stock
Exchange in place of the stock Of the
Washington Market Co. When the
new company acquires ownership of
all the stock of the market company
1t will take over the direct ownership
of all the assets and assume all the
liabilities of the company and its sub
sldlary company, and the two latter
companies may be then dissolved.
The plan being presented to the
stockholders has been unanimously
adopted by the directors Of the Wash.
1ngton Market Co., and it has been
already accepted by stockholders of
record, holding approximately 20 per
cent of the outstanding capital stock.
Business Started In 1872.
The Washington Market Co. was
charted by Congress in 1870. 1t
opened for business two years later,
being known as Center Market. The
cold storage business was added in
1886 and in 1903 an ice manufacturing
plant was established Further ex.
pansion took place in 1907 and again
in 1914. In 1922 the Government
decided to take over the operation of
Center Market and proper financial
settlements were made with the mar
ket company.
The directors found it impracticable
to construct another building for the
marketing of food products by stall
rentals. but decided to increase the
cold storage facilities with railroad
connections. It was at this time
that the refrigerating and wharehous,
ing auxiliary company was formed.
Inc company has developed a. con.
SIDERABLE volume of carlot freight dis.
trioution through connection with the
Pennsylvania Railroad System.
The officers and directors of the new
company will be the same as those of
the Washington Market Co. and in.
ciude charles j. Bell, chairman of the
board; Wrisley Brown, president and
seheral counsel; Simeon T. Price, vice
PRESIDENT ralph w. Lee, treasurer;
robert d. Marshall, controller.
Francis J. Becker, secretary. and Mo-
rls W. Bennett. auditor. The sen.
lor officers and the following comnrisa
the board of directors:
Eugene K. Thompson, Clarence II
Norment, Appleton p. Clark, tr.: Clar.
ence A. AspinWall, Gustave w. Fors.
perg, William M. Hannay, James r
Lamble, Robert D. Marshall and WI.
liam P. Reeves.
Stock Up From 1874 to 55A.
1t is not always necessary to on q
long distance to find a stock that has
nad wonderful advance. The market
Fa!ue or western Maryland common
galned $z0,232 900 in the first half of
the present year. The price rose from
1913 on December 81 to SSH on June
~. In other words, the market value
OF the 494,261 shares Of common stock
jumped from $6.SS8,0 at the end of
the year to $27,120.O00 on June 80.
While the early advance was ex-
planned by the Baltimore G. Ohio deal
announced in February, the continued
rise since then has made Western
MARYLAND one Of the mystery stocks
Of Wall Street.
Merger talk and speculation are
held to be vital factors in the ad.
vance. Satisfactory, though not sen.
satlonal, earnings have also played
their part in the stocks strength.
Virginia Calls Taxation Fair.
The State Of Virginia, through
counsel for the State Tax Commission,
has filed in Federal Court al answer
to the Norfolk National Bank Of Com.
merce q Trust Co.'S petition asking
relief from tax assessments which 1t
was claimed were discriminatory. The
Norfolk bank, along with several other
national banks Of the State, protested
against the $1.10 assessment against
each 500 Of stock, declaring that the
rate was too high, in that private capt.
tai engaged in the same business was
taxed at a lower rate.
AS matter of fact, the answer
states, the banks are being asked to
pay only about 60.62 cents on each
500 of actual valuation. To empha-
size this point it is pointed out that
the valuation of the banks capital is
set for taxation at $4,133 900, while at
the actual fair market value 1t is
worth approximately $7,500,000.
Bank Extension Work Starts.
The Security Savings & Commercial
Bank has begun the work of extension
which will take in the two buildings
to the east of the banks present
structure at NINTH and G streets
northwest. This is the bank which he
Gently took over the Central Savings
Bank and converted it into an uptown
branch. In connection with the
changes and improvements at the
main office, it is stated that the cage
less counter idea is to be adopted by
the savings department.
Right now Julius I. Peyser, the
president, is one of the busiest men in
Washington. In addition to his duties