Evening star., 1941-02-26
Approval Indicated
For Washington Gas
Preferred Issue
Nearly Two-Thirds
Of Holders Already
Behind Proposal
BY EDWARD c. STONE.


Nearly tWo-thirds of tEe Wash
ington Gas Light Co.'S stockholders
have sent in their proxies favoring
the proposed increase in capitaliZa-
ton by an additional issue of 10000
shares of S425 cumulative preferred
stock, about 10000 shares to be
issued this year, officials at the
head Office announced today.
The law requires that two-thirds
of the present stockholders must be
favorable to any extension Of capt.
tai. That percentage has been so
nearly reached already that it is
now certain that the proposal will
be adopted at the adjourned annual
meeting of the stockholders on
March 10. In fact. the number of
proxies will be considerably mole
than ample.
Small holders of stock are always
slow to forward their proxies. The
number received from small holders
is increasing every day, it was said
at the office No particular opposi-
tion has been expressed to the plan
by the shareholders who have been
putting off the actual mailing of
their votes. The fact that the new
stock is considered necessary for
expansion purposes has prevented
any serious objections to the move.
it was said today. Expansion will
eventually mean increased income.
S3,000,000 Needed This Year.
After approval by the stockhold-
ers. Washington Gas officials are
planning to issue 10000 shares of
the new S425 preferred stock this
year, il being believed that S300O000
additional funds will meet all 1941
capital needs. The remaining $4,000
of the 10000 shares will be issued
later as needed. The company has
no intention of raising S9,000,000
in capital at one time.
The new $425 preferred stock
will not be convertible, but in other
respects will be similar to and rank
on a parity with the present out
standing $3.50 cumulative convert
ible preferred stock The new stock
will provide alternate means of
financing the company other than
by sales of bonds or of common
stock.
In the letter to stockholders,
Washington gas officials state that
the need for new money is apparent
to any one who considers for mo-
ment the growth of the Capital and
the fact that the company must at
ell times be ready to meet the gas
service requirements of the entire
population.
Expansion Rapid in 1910.
IN the last II months the number
of meters connected to the system
increased by $4,000 and volume of
gas increased Is per cent. So far
this year the same gas volume in
crease has been maintained, it was
stated today.
The price at which the 10000
shares of additional stock will be
offered is not yet known. Following
authorization, the price and other
terms of the issue will be subject to
approval by the Public Utilities
Commission.
There are about 5000 Washington
Gas Light stockholders in the
Greater Capital area who were re-
quested to forward their proxies If
they would be unable to attend the
annual meeting in person.
During the past five years the gas
company and its subsidiaries ex-
pended more than 100000 for ad-
ditions and extensions to their
properties, over $2,500,000 being
spent in 1910.
When the increase in capitaliza-
ton has been approved, total au-
thorized shares of capital stock of
the company will be 100000 shares,
consisting of 100000 shares of COM
mon, $4,000 shares of $3.50 preferred,
10000 shares of $5 preferred and co.
900 shares of the s4.25 preferred.
Chapman Has Trade Board Seat.
G.. Bowie Chapman, veteran
broker who is connected with the
Washington Office of Laidlaw & Co.,
New York Stock Exchange firm,
has been elected to membership in
the Chicago Board of Trade, it was
learned in the financial district
today.
Mr. Chapman is optimistic on the
outlook for the Chicago grain mar
ket and also for the New York Stock
Exchange. he said today. He looks
for increased activity in all the big
markets in the near future, baSing
his views on what he believes to be
a change in sentiment now taking
place among both traders and in
veStors
b. & o. Net Earnings Higher.
Net railway operating income of
the Baltimore & Ohio R R. in jan
uary amounted to S3,162,2 ,205. COM
pared with sl,766,3O9, in January
year ago. an increase of ST, 1895 1896,
it was announced today.
Freight revenues totaIed $14,-
413.508, gain of S1,603, ,434 over last
year; passenger revenues disclosed
a gain of S228,759, while other oper-
ating revenues were also better than
a year ago Expenses of $11.855 419
were S51l,371 higher than last year.
Net revenues from operations
showed a gain of S1392253.
Stanley COnfers With Healy.
Harold Stanley, president of Nor
gan Stanley & Co., yesterday con-
ferred with S. E. C. Commissioner
Robert E. Healy on the S. E. c.
steff's proposal that competitive bid
ding be required in the distribution
and sale of public utility securities
The S. E. c. is now giving con-
sideration to the staff proposal that
sealed bids be required from under
writer's on all utility issues over ST.
100000 and is expected to reach a
decision soon.
1t is understood, according to the
Wall Street Journal, that Mr.. Stan
ley was invited to discuss certain
other alternatives for the S. E. C.s
present arms length bargaining
rule which were touched upon brief
ly at a recent public conference on
the subject, but which were not de-
bated at that time. Morgan STAN
ley & Co. has been one of the lead
ers of the opposition to the S. E. c.
Staff rron0cal