Evening star., 1937-06-23
WASHINGTON GAS
ISSUE IS OFFERED
$3.50 Cumulative Convert.
ibIe Preferred Shares Put
on Market Today.
BY EDWARD c. STONE.

The Washington Gas Light Co S
new issue of 10000 shares of $3.50
cumulative convertible preferred stock
was offered to the public today by a
group Of Capital investment firms. the
new stock being priced at S95 a share.
Following meeting of the distrib-
utors of the stock. held this noon, it
was announced that the issue had
been very heavily overSubscribed and
that the subscription books had been
closed
The stock was offered by Y. E.
Booker & Co., Auchincloss, Parker &
Redpath; Brown, Goldwyn & Olds;
Folger, Nolan g. Co.. Johnston, Lemon
4 Co.; William H. Mackall, jr,, and l8
other local investment firms.
The new issue has been approved
" the Public Utilities Commission of
he District and is being sold through
most exhaustive and complete pros
1ectus. The sale will yield the COM
underwriting costs and commissions
later, the prospectus says. when and
f ARRANGEMENTS are completed for the
acquisition by the corporation of the
ecuritIes of the Alexandria Gas Co.
md the Washington Suburban Gas
Co, an additional 10000 shares may
,e issued. Of the 10000 shares placed
N the market today, the corporation
offering 3,20l shares to holders of
common stock.
Stock Ranks Above Common.
The 10000 shares of preferred stock
IRE entitled to cumulative cash divi-
lends in preference to the common
took at rate of $3.50 per annum
md no more, payable on the 10th of
February, May, August and November
If each year. The stock is also en-
titled upon any voluntary liquidation
70 s105 per share and upon any in
voluntary liquidation to SlO0 per
share
1t is redeemable at the option of the
corporation in whole or in part at any
time at sos share plus accrued
dividends and is convertible into COM
mon stock at the rate of three shares
Of common for each share of the
$3.50 preferred; also has voting rights
of one vote for each share held.
The Washington Gas Light Co. has
agreed to make application for listing
the stock on the Washington Stock
Exchange in the near future. Of the
proceeds the corporation will use
s25o,000 for paying off bank loans
incurred in connection with expansion
and additions to the company's plants
and distribution system during 1886,
The balance will be used in reimburs-
ing the corporations treasury for ad
ditional expenditures in connection
with expansion and plant additions
and to provide the company with
funds for further expansion outlays.
The Washington Gas Light Co. was
incorporated by act of Congress in
1846 and the Georgetown Gas Light
Co., now a part of the parent con-
cern, in 1854. The two concerns were
merged on December 7, 1886. Sub
salaries are the Washington Gas
Light Co. of Montgomery County, Md:
Rosslyn Gas Co. and the Prince
Georges Gas Corp. The company
serves the Capital and a wide sur
rounding territory.
Company's Earnings Compared.
The prospectus compares Washing
ton Gas Lights earnings for the past
three years. Operating revenues in
1884 were s6,742,29O26, in 1885
amounted to s7,090,155.78 and in 1886
totaled S7,504,57836.
Operating expenses in 1884 called
for S4522 ,2351O. in 1885 for s4813,-
1920 and in 1886 required $685.
48623 After deduction for all oper-
atng expenses, interest on funded
debt and other interest and income
deductions, the corporation had a net
income in 1884 of 1885, 81, in 1885
of S975,767l9 and in 1886 of $685.
1906.
Net income of the Washington Gas
Light Co. and subsidiaries in the first
four months of 1887 was approXi-
mately S555, ,596, or S59,241 less than
in the like period in 1886, the decline
due principally to unusually mild Win
ter weather, to an increase in the
amount of gas delivered but not billed,
due to the effect of cycle meter read
ings, and also to an increase in taxes
and new business expenses. The gas
send-out was in excess of the same
period a year ago.
Wholesale Trade Advances.
The Federal Reserve Bank of Rich
mond announced this noon that whole
sale trade in five major lines scored
substantial gains in the fifth district
in the first five months of 1887 COM
pared with 1886. Groceries sales were
up is per cent; dry goods, 7 per cent;
shoes, II; hardware, %, and drugs,
lis per cent. Gains were noted over
May, 1886, in groceries, hardware and
drugs, but dry goods and shoe sales
were off Slightly. Sales in all lines
were lower than in April
Stocks on hand at the end of May
were much larger than at the same
time last year, but lower than at the
end of April this year. Collection
percentages in May were unusually
favorable.
Virginia Bankers to Meet.
About 800 members and guests of
the Virginia and West Virginia State
Bankers Association are to gather at
White Sulphur Springs, w. Va. to-
morrow for a joint convention last
ing through Saturday. Association Of
ficials, the two State Governors and
other speakers are to appear on the
program.
Several Washington bankers will
attend the sessions, Among the
speakers will be Myron E. Bristow,
Virginia State banking commissioner,
who will discuss branch banking. He
has recently been outspoken in op-
position to extension of branch bank
ing across State lines.
Heard in Financial District.
Holders in this city of Willys-Over
land Motors $40 par value convertible
preferred stock have received word of
the declaration of a quarterly divi-