Evening star., 1927-05-15
BY /. A. FLEMING.
Stock Exchange HistOry--III.

! lASIeSS IL AdCt, liIdt HIcihpSi Ship9 'i'
the Washington Stock Exchange
have sold as high as $4,000.
In 1881 on the formation of the
exchange they sold at $50, later the
same year they dropped to S25. Up
to 1886 they kept within this range,
touched $100. then in 1899 brought
81 400, and this was also the high
of 1900
Dropping the old-tim history for
the time being and turning to Dash
ington securities, 1918, we find that
In 1901 memberships were quoted at
50 2.250. to $3.50 in 1923 and then
in 1904 they jumped to $4,000.
In 1905-6 the merger of street
railways of Washington, now form
ing part and parcel of the Wash
ington Railway & Electric Co, be-
gan to take shape with the Potomac
Electric Co. as the backbone of the
combination, with five or six under
lying roads and a large amount Of
bonds and with practical certainty
If sufficient development in the future
TO permit Of the financing of many
more millions Of stock and bonds.
Jump to $4,000.
And then in 1905 they jumped TO
$4,000. Ask any of the old timers
if this statement is fact. and they
will tell you. "Griff Halstead paid
$4,000 for a membership" and "Thil-
man Hendrick also paid the same
price for his seat" which he has
held ever since.
Eugene f. Thompson, whose MEM
ory of local stock exchange matters
is probably 100 per cent good, also
declares that there were four mem
berships sold in 1905 and 1905 at
$4,000 each.
It will be noticed that there were
no quotations on memberships from
1883 to 1S98-they were probably
dormant during these years.
Starting on the $4,000 basis In
1906 they touched s7.450 and $1,000
in 1907, and by 1911 were down to
$3100 and $4,000 in the last secu-
rites book--the issue Of 1913. To-
day they are $500.
Fourteen Years Without Records.
This naturally brings back the
existing situation today. For Ia
years the Washington Stock Ex-
change has been without the regular
year books, recording the happenings
and the price records of the vari-
Gus securities and happenings in the
market and on the exchange-elec-
tions of officers. members and the
daily records of transactions have
accumulated only in the records of
the exchange. 1t is true, in the daily
papers, the happenings in the market
and the prices of securities have
been recorded.
A number of Philadelphians became
interested in Washington Railway and
Electric in 1911, during the presidency
of Clarence p. King. A plan was
mapped out for the formation of the
Washington Utilities Co.
This company was to be the medium
for the consolidation Of all the local
utilities of the District. AS starter
the Utilities Co. began the acquisition
of the common stock of the Washing
ton Railway and Electric Co.. buying
it freely but quietly, with as little pub
licity as possible.
At the same time there were distinct
| evidences of a movement to depreSS
the value of Capital Traction shares.
This security had heretofore been
favorite with local investors and not
only exceeded in earnings the income
of the Washington Railway and Elec-
trio Co. from passenger service, but
had a shorter haul without outlying
feeders. so called, some OF which
made but poor return on the invest
ment required.
Prices Ease OF.
In August, 1909, Capital Traction
shares sold to 139 share. BY 1910
it had eased off to 1876, recovered to
1873 and in 1922 dropped to 1913. Large
blocks of the stock were thrown on
the market and continuous declines in
price resulted.
1t was claimed at the time that the
pressure being exerted on Capital
Traction stock was the result of an
effort to bring the common shares of
Washington Railway and Electric
nearer parity.
Senator Robert NJ. LaFollette. sr.
checkmated the plans Of the utilities
crowd and oiled the skids for the ulti-
mate complete failure Of the project
by his action in securing the passage
of the anti-merger measure.
The North American Co. holds prac-
| tically minority control OF the Wash
ington Railway and Electric Co. with
| the stock once owned by the Utilities
| Co., plus many more shares OF com.
mon and preferred bought in the mar
| ket.
Far from being opposed to merger
at the present time, the authorities
would gladly welcome it. Indeed, Con-
gress has been considering measures
| by which such a merger might be
forced.
In all the intervening years the
| Capitalization on the Capital Traction
| Co. has remained the same, nor has
| the bonded debt been increased one
penny; all improvements and exten-
sions, If any, were paid for out Of
earnings.
City Government.
The old history under review calls
attention to the forms of government
| in the District of Columbia. For
| time there were three separate gov
ernments set up by Congress-those
of the city Of Washington, the city Of
Georgetown and the county of Wash
ington outside of said cities.
subsequently they were all abol-
| ished and a general government for
the whole District formed, with a gov.
ernor. council and legislative assembly
which was later abolished Act of
June 90, 1874, with better defined
rights, powers and relations of the
Federal Government"
The judiciary committee of the
House of Representatives Of the Forty.
third Congress In a report declared
"In a strict legal sense there can be
said to be no such thing as local
government of the District of Colum
bia, for there can be no government
within the District Independent of that
of the Federal Government; and what
ever local authority there is existing
or which may hereafter be set ur
within the District, 1t can only be re
garded legally as an agent Of the Fed
eral Government and whatever au
thority the local government may
exercise, 1t must be regarded at
an act of the United States Govern
ment through their delegated repre-
sentative"
"The people can neither create deb
nor raise money by taxation" say