Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-04-06
Business News lin RETROSPECT
Mr.. Fleming Comments on Happenings in the
World of Finance and Interprets Their Meaning
With Relation to Events of Other Days.

but that it will make q great differ
ence In the income of the manufactur-
ing corporation is not at all probable.
Cuts in the cost Of electric current from
time to time have been steadily fol-
lowed by increases in the manufacture
ing corporations earnings.
OF course there is the possibility of
slip or a blocking of the entire
plans of the gas corporations, but at
this writing the chances seem to favor
enactment.
That the interests controlling the
corporations are satisfied with the OUT
look and are not expecting a check
mate Is further evidenced by the re-
tirement Of Ord Preston, one Of the
most efficient presidents the company
has had, who has been president since
the retirement of Howard Reside. Mr..
Preston was a very large shareholder
and his action forced the new owners
to pay $125 a share for all the stock
ton was not forced out, but did the
forcing-and retires to give attention
to large personal affairs.
Looks Ridiculous.
That a gas-producing corporation
serving the greater part of Washing
ton, a city of over 100000 population,
should be restricted to a capitalization
of $260.000 is itself preposterous. 1t
best melon in the garden, and 1t will
be worthy of comment, II the New
Workers do not give evidences of their
great ability In imitation of gas stock
not prices. although that may come
later.
The Railway Situation.
Local capitalists in harmony with a
few; Philadelphians furnished the
poration of all the public utilities Of
Washington. The Washington Securi-
ties Co. was organized and before the
matter had become common knowledge
large quantity of the common stock
Of the Washington Railway e. Elec-
trio Co., had been acquired, some Of
the shares at high prices.
The late Senator La Toilette threw
marlin spike into the plan with
his amendment preventing any utility
company from holding. or acquiring
stock Of any other local utility COM
pany.
Washington utilities, checkmated thus
early in its career, was forced to the
wall. Creditors, bankers of Washing
ton, acquired large holdings of rail-
way common very cheaply and, not
being spectators, reSold to New York
corporation at the same low price,
SCI so. That stock is now worth $500
share bid.
Merger Attempt Fails.
Another merger attempt went by the
board, being fought to a finish before
Congress and the utility commissioners.
Just at this time the trend is toward
a consolidation of the street railway
companies Under the title of the Capt.
tai Transit Co., the old-time favorite,
Capital Traction Co., disappearing. the
Washington Railway Co. existing as
the holding corporation.
1t Is reported that the Pepco COM
pany will not be in the combine, so
that railway common shareholders may
get a reward in big dividends.
All the common stock of Potomac
Electric, but few shares, is pledged
to guarantee an $1l,6l3,000 4 per
cent bond issue known as Railway Is,
due 1851.
Looks Likely.
Here again there's a chance for a
slip-up between expectation and con-
summation, but if it goes through,
credit will once more have to be given
New Yorkers-local talent couldn't do it.
Suggested compensation for permit
ting this merger are existing passenger
rates for 10 months, concessions in
chidren'S fares and some minor mat
tiers.