Evening star. [volume] (Washington, D.C.) 1854-1972, 1941-03-13
Washington Railway
Common Stock Units
Turn Very Active
Dividend Declaration
BY North American Co.
Grips Attention Here
BY EDWARD c. STONE.

was reported in the financial dis
trict today. At present levels the
units yield per cent or better
AS additional units will come into
the market in the near future, they
have been selling off a little dur.
ing the past few days.
The Washington Railway & Elec.
trio units have suddenly jumped
into the limehght, due to announce
ment by the North American Co
that the current quarterly DIVIDEND
on North American common stock
is to be paid in participating unit:
of Washington Railway e. Electric
common stock. Furthermore, divi-
dends on North American common
stock are to be paid in this manner
during the rest of the year.
The North American Co. has al
ready paid two dividends in these
units. Declaration Of a third divi-
dend of this kind confirms the
North Americans formerly an
nounced policy that the company
plans to divest itself of control of
the Washington Railway & Electric
Co., a plan of major significance
to a host of Washington investors
in Potomac Electric Power Securi-
ties as we'll as in Washington Rail-
way & Electric issues.
Units Widely Held Here.
Washington Railway & Electric
participating units are very widely
held here. The latest dividend is
based on $3.50 per unit. In 1910
dividends on these units were equiv
alent to s11212 per unit for the
year. Railway common paid four
$40 quarterly dividends and an
extra of S14 at the end of the year.
The dates and amounts of divi-
dend distributions on the units
were: February, 2212 cents; May, Is
cents; August, Is cents; November,
Is cents, and December, Is cents.
Again on February %, 194l, the
Washington company paid a quar-
terly dividend on the common equiv
alent to IS cents per unit.
The dividend on North American
common stock is payable on April /,
1910, at the rate of one participating
unit for each 40 shares Of North
American common stock held. Since
no fractional units will be issued,
cash will be paid at the rate of 46
cents per share of North American
common stock to holders of less
than 40 shares of such stock, and to
holders of more than that number
with respect to the number of shares
held over the largest multiple of 40
shares represented by their holdings.
Charged to Earned Surplus.
The certificates for participating
units are issued under a deposit
agreement with the Bankers Trust
Co. as depositary. Each participant
ing unit represents beneficial own
ership of 1-40th of share Of
common stock of 500 par value Of
Washington Railway & Electric Co.
The deposit agreement gives the
holders of the units proportional
interests in all dividends, distribu-
tons, subscription rights and voting
rights of the deposited shares of
the Washington common stock, the
North American Co. announces.
The statement adds:
This dividend in the form of
units, as in the case Of the two
previous dividends paid in similar
form on December %, 1889, and on
October l, 1910, is not a diStribu-
ton out of capital or capital sur
plus of the North American Co.
and is not a partial liquidating
dividend. The dividend is charged
on the books of the company to its
earned surplus. We have been ad-
viSed that the units are taxable
to the stockholder as dividend on
the basis of the market value of
the units on the dividend payment
date Gin this case April /, 194D."
The common stock of the Wash
ington company is listed on the
Washington Stock Exchange. The
units are not listed on stock
exchange, but are dealt in by broker
age firms over the-cOunter market.
The North American Co. at present
owns directly or through its own
ership of unitS) 56,577 shares, or 81
per cent, of the common stock and
1927 shares, or Is per cent, of the
preferred stock of the Washington
company, together representing As
per cent of the voting stock OF that
company. The present dividend
will reduce the companys holdings
to approximately 80 per cent of the
common stock and 43 per cent Of
the voting stock.
Two Banks Declare Dividends.
Directors of the Security Savings
& Commercial Bank have declared
a semi-annual dividend of per cent
on the outstanding stock, payable
March 81 to stockholders of record
March Is, President Francis G. Ad-
olson. ir., announced today.
Directors of the Bank of Com
merce & Savings, at the monthly
meeting yesterday, declared the reg
ular quarterly dividend of $3.50 per
share, payable March 81 to stock
holders of record March 20, Presi-
dent Thomas j. Groom announced
today.
Potomac Power Sales Mount.
Kilowatt hour sales of the Poto-
mac Electric Power Co. in the Dis
trict of Columbia in February scored
a sharp gain over the like period a
year ago, it was reported today at
the head office.
Sales reached 76,638,97S kilowatt
hours, against 68.831>620 kilowatt
hours in February, 1910, an increase
of 1907 1853, or 1.34 per cent, todays
reported stated.
Today's report furnishes further
evidence of continued improvement
In business conditions in the Capt.
tai.
Financial District Comment.
Lincoln Service Corp. common
stock figured in a 10-share sale on
the Washington Stock Exchange to-
day at 1872. 1t was the first sale
in this stock on the exchange this
year. Other issues were neglected.
Capital Transit stock is now quoted
ex dividend, Is bid and 1634 asked,
the recently declared dividend to be