Evening star., 1935-11-04
v. R. &E. COMMON
HITS $500 A SHARE
Asked Price on Exchange
Moves Up to $500, With
No Sales Reported.
BY EDWARD C. STONE.

Electric common stock jumped on the
Washington Stock Exchange today
from s400 a share to 5000 share.
At the same time the asked price
moved up to $500 share. No sales
we're recorded.
On Saturday the bid advanced from
$3.50 to $400 a share following the
North American Co.'S announcement
of a plan to issue new stock against
the old common and give up control
of the Washington Railway g. Electric
Co., by reducing present holdings to
between 8 and 9 per cent.
Before the Washington market open
ed today 1t was stated by members OF
the exchange that Railway a. Electric
common was really worth much more
than the s400 per share bid on Satur-
day.
That Is why the price scared to $500
today with $500 asked. There have
been no sales in the stock for many
weeks, no one being willing to part
with it at the nominal bids that have
been recorded Back in September 1t
was quoted at 1925 bid.
Control Issue Discussed.
North Americans latest move was
the main topic of conversation in the
financial district today. In addition
to the North American Co. giving up
control of Washington Railway g. Elec-
trio, the move also means that the
Capital Transit Co. will come back to
full local control.
Half of the Capital Transit stock Is
owned by Washington Railway g. Elec
trio and half by the transit company.
With the w. r. &, E. stock sold to the
public. the control of Capital Transit
will naturally be held here. The stock
already owned by the transit company.
together with what the public will
own, will bring this about. at least
that was the claim made in the
financial district today.
1t is also considered most probable
that the Securities Exchange Commits
sion will approve the plan presented
istration papers.
This forecast is based on the fact
that such move complies with the
main object of the holding company
act passed by the last Congress. To
turn down the request would be
against this new legislation.
The price at which the new stock
will be offered the public will be one
of the hardest problems the Securities
Exchange Commission will have to de-
termine.
The Wall Street Journal stated that
the price would be around $50 share,
that figure to be the maximum. The
transaction involves millions of dol
lars in profits. how large a sum de-
pending on the price of the new stock
and the cost of the present w. R. g. E.
stock to the North American Co.
North American stock on the New
York Exchange has moved from 8 to
25ss during the present year.
The Board of Governors of the
Washington Exchange voted today to
keep the exchange open as usual to-
morrow. The New York Exchange
will close on account OF election day.
Bank Asks Bids on Bonds.
The Baltimore National. Bank. as
trustee. asked for bids on 1925, 900
Anacostia e. Potomac River Railroad
S per cent first mortgage gold bonds.
due April l, l949, which are to be
Cancelled The advertisement said
Notice is given holders of bonds of
above issue, secured by indenture
dated April /. 1899 that the under
signed. successor trustee, has three
hundred twenty-five thousand dollars
1926. .000,000), which it holds under
the terms Of said indenture, for the
purpose of purchasing bonds of said
issue, and it will receive tenders up to
2 pm. November l8. 1885, from hold
ers of such bonds. Tenders should be
sealed. State quantity of bonds Of
fered and price, with interest, for de-
livery on November 81. 1885.
mo tenders exceeding ninety-two
percentum t92T) of the principal
amount thereof and interest will be
accepted and the right is reserved to
accept or reject offerings in whole or
in part
The offer of 90 for the bonds had
been awaited with great interest for
several weeks by members OF the
Washington Exchange on which the
bonds are listed.
Lively Trading on Exchange.
Trading was the best in weeks on
the Washington exchange today.
Bonds were in heavy demand around
recent levels, Capital Traction IS and
Washington Railway g. Electric As
leading the list Railway As sold at
ao515 and Traction SIS at SO.
Washington Railway g. Electric
preferred sold at 1912 and 107 today.
National Bank of Washington stock
moved at 104l2. Capital Transit stock
vas out today at 18. The bid on
Mergenthaler was 81, asked. "a.
The regular meeting of the audi
tors section of the District Bankers
Association. scheduled for Thursday,
November IA, will be held tomorrow