Evening Star Newspaper, May 20, 1921, Page 28

4 28 THE EVENING STAR,- WASHINGTON, D. C., FRIDAY, MAY 20, 1921 : Wmm (Continued from First Page.) ' | | ! the rate of 5 per cent per annum, with jattempting to ascertain what it de- !an exchange of the 120,000 shares °r‘m?’;&l:flo':‘:fl.'z:'&""' prefer-| ton Railway and E'hiclr‘lc zt;o:'.‘]m‘\)gg flton sion we have had. regarding the pro- |8 second preference as to dividends (o nominates the “indeterminate equity” the Capital Traction Company for an | €ite both as (o aasels and locome. =~ |314451,246.82, & total of $29.500.000.00. 4 £ 2 posed plan of merzer submitted to|the stock of the Capital Traction|in the stock of the two companies is| equal number of shares of COMMON | geiecied as follows: Each director tor hore pon Dullness in One Flgld Is Relleved b you by the Capital Traction Company | COmpany at the rate of 2 per cent per |to distribute between the companies stock in the merged company; an €X- | gtitute or pwIy when necessary. The present capitalization of the ) 4 for the merger of its properties with |annum; the common stock of tlhe a8 nearly as may be the difference be- | change of the £5.u00 shares of the |’ y the stockhoiders of the Capltal Traction | Capital Traction Company is $12,000,- those of the Washington Rallway |Washington Railway and Electric|tween the par value of their present|wWashington Rallwny and Electric| Compacy, nine. e el Washis R hanibes] . . . - and_Electric Company and the Po- |Company to be converted into the|stock istues and the equity represcnt- | Company's preferred stock for an | By.the storkholders of the Washiagion Ral.| 308, 80 of the Washington Railwey l'lg tness 1n nothe 1tuation tomac Electric Power Company. we |S8me number of shares as present of | &1 by the eXcess of asséts over lid- |equal number of hares of new. pre. | way and Biectric Gompany.‘seven.. zed by Congress, a total of $27,000,- deem it avpropriate to state for your |ommen siock, without par value and |bilities. using as 2 tesis feure (e ferred stock having the same dividend | APEId Ly, U2 FWLC Culives commis: 8220 b3 Coneioss, & 1ole) o $ehtiiea| guidance our position, as follows: oth preferred and common stock to v as at present per cent) and the Ll g 5 . 2.500.! El h “In event Of a merger the Capital |have voting power: or If for any |Properties. The method of, BrIVInE | same preferance as to liquidation. In| The number of directors to be select- |8 estabiished ?{J."(‘Sfif"'{,‘fl{f'?&p:fi sewhere. Traction Company demands absolute |Feason neither of the foregoing is|at this indeterminate cqullll) ‘l! Inlh- determining the method of exchange]€d by the stockholders of each com- 0‘;“ “ek- according to the plan of ¢ and unqualified control of the con- |deemed acceptable or eminently just. |cated in the statement following the ¢ (RGN, 10 Method of «RChERSN) pany are In proportion to their re. 'r'.' ”" aarr: m‘ Qjustment of! solidated company. “The Washington Railway and Elec- | neXt paragraph. Railway and E yislcom=| BRective equitiesiin iche ‘reproduction|)ithe commissiontIor tie s sanics,| (Disy the progress below its. € o L i i In estimating the value of the earn- Yy and Electric Company value as found by the co | equities between the two companies. patches, marking prox total deposits. Clearing hi The properties of the Capital|tric Company believes it could. and| I estimating the V& pital Traction|mon stock for stock in the new or|V3lue as foun m";‘ oy ."";""[‘“0"» to allow the present total capitaliza-|®f the deflaifon and readjustment |figures show that loans have cxc d YanlUon Cempany, om ihe baale o ouidiendearorito. ",‘,"f,’;::fl;‘;‘nd, by Company over that of the Washington | Mer&ed company the commission ar- ), Li€ eV ned DIan now sul omm i |10n8GF the two corapanies to remaln out “;{dflm"(! [Sinoeibhy, WA SAL khe reatal SIS valuation use by the 'ublic Utili- at ninety dol T S ot D - |Tived at an equity va 3. i i loms of | rate of iquidation continues for two ties Commission. represent about |share all of the capital stock of the (Railway and Blectric Company. tePges for those 63,000 s 1&‘;40! |20 10, the division of income. and island to distribute to the companies have | weeks the bamks will begin 10 think £16.000.000. while those of the Wash- | Capital Traction Company. if deliver- ;‘;"U‘db]byblflw | s‘;lre of $2. ion con- | share. 5 ?;"‘m‘: “'.'“;{9 t lnll(l l,sl certainly fair | their respective shares in Drovort;or“ about taking on new loans. ington Railway and Electric and Po- |able. or substantially all of it. it (hai nodir o Ehuiox tm| Thesel 65000, shares wonidl e ex: |5 e N aEhinston N ravsndiElecy) togtelrdequities thaCia,f CiolCapl ta) But the builders are hungry for capi- * lomac Electric Power companice ag- | "By unanimous direction of the board | 8idered that under any chanked (00n| nangea® 2" o “Der “nare. value of | rie, COMPANY. I provides for a pref- o o eeny an” recine |are printed daily in The [tal and there is not going to be much gregate approsimately 40,000,000, | of directors of the Washington Rail- | of tax: s the Capital Traction|$47.473, for 20,853 shares of common o our securities, to whicl 5 a4 E | { of a breathing spell for the banks. The The combined properties . would.| Way and Electric Compan: s I e Teaat Al Stoo ki e e W Or e P et by | oot e on of mnich, according | Company $13,265,100, or $1,734.900 le. BY J. N. FININ | Detroit Board of Cofnmerce is organ: > v (Si o v C 2 : . ggestion of merger submitted | th h t t of stock o X therefore. represent values of about| By (Signed) *'S. R. Bowen, T SRR A C L placing th ¢ f L ed | than the present amount of stock o |ing to push home construction project g 2 roshi on the fair value of its prop- = them on an equal footing PEr | by the Washington Railway and Elre. | (h ial Dispateh to The St | ; - £36.000.000. Under what view of pro- [ “Washington, D. C., May 2. 1921. S eon a i s . 3 S cc- | the latter company. )| Special Dispatch o e Star | and is co-operating with general con- N e L e ';Ze'sr“oc{)“b'::hoxfh'em“::\‘a’s;ri:gelo:\arl?rll.i‘fi"3:;:;:“““”':H:ESOI‘FD'P'?)‘XZ“:}:;F: of the Views ompany, and sccording to the| While there are many detalls todis- | ST. LOUIS, May 20.—Contrasting |iractors and dealess vo the end of oh property should control £56.000.000 it fsideration of these plans. were unable | wai 300 Electric Company and the | Both the new common stock and the | entitled | This plan sivee cixc"cY are | cuss. such as the appropriate enabling |gigng of improvement and depression | taining immediate capital. is difficult 'to understand. ' Yet the |to reconcile their differences, the con- [ 5oy SO Aretiric SOmpany Bl L o e ok o s coti ferre & also to the|jegisiation, you will please co-operate 3 . L : : : Cox B s 0 have full voting | preferred stockholders of the Wash- |wqih i mark the prevailing tendencies in the o proposal of the Capital Traction Com- | ferees representing the Public Util-ltphe fair value of their respective prop- | power, share for share ington Rallway and Electric N Niinecommisalontin mniefortitn st |Hardware Goods Feature pany requires in_effect that the |ities Commission undertook to formu- | erties. equal tn $160.000 per anmum. R e thelr prement status andsptoterence. | GTCCt & merger upon the principles (St Louls territory. in the southwest Washington Railway and FElectric |late a basis for a merger. which capitalized at 6 per cent would SiNERSd e L accepiable. As wo view (he situation. the pubitc|P oPomed: and southeast. Dullness in one field Trade in the Southeast and Potomac Elcctric Power com- Three Elements in Plan. give an added value of $2.500.000 to| At one of the meetings of the con-|ig interested in mergor bocause ot the | opB”, ITCtion of the board of direct- |0 o oon Lo ™ " icieq by bright- n e panies should turn over $40,000.000 L 2 the property of the Capital Traction | fCrees, this plan of the commission Was | bxpectntion th For bocauss of the|ors of the Washington Railway and|® £ in property to their uncontrolled dis- | The Public Utilities Commission plan ; the Property of the Capita submitted to the representutives of the [ {aPici®LOR that @ merger of the com- | Blectric Company. {ness in another. BY RALPH SMITH. cretion. ' This hoard would be rec: |comprises three clements: First. the F “ two companies, and after being studied | service generally, with a requmting n|. (SiEned) S. R. BOWEN, Secretars. | The situation unfolds variegated | Special Dispatch to The Star. reant to its trust if it entertained a e'*;""""""“ of the equity in the enult of Computations. by them was returned as unacceptable | fare. . Dated. Washington, D. C., indications. promising and disaP-| ATLANTA. May 20—An unprece- suggestion so obviously one-sided. |Stock on the basis of the priced in-| The result of these computations is]for the reasons indicated in the revised We fall to find { May 12, 1921. pointing. adaptable to interpretation |, i : a8d one our stockholders would nof | VENtories; second. the rscertainment |given in the following statement: plans for merger submitted by such|mitted any resmononie c Dlans 2ubil ‘After full consideration of the above | in accord with either the hopeful or _f.:.'x,:’m‘:f,:',‘,'":.f:r e B and should not agree to. - :of what is denominated the “inde-|MERGER PLAN SUBMITTED BY THE PUR.|company. quoted in full below: any considerable reduction in fare. | Plans it became evident that the dif-ipessimistic state of mind. and AMONK | }oucellold convenirnece particulare “If the sole object to be attained |terminate equity.” that is. the £XCeSS| LIC UTILITIES = COMMISSION —INVEST-| SEOOND MERGIS PLAN OF THE| The Capital Tracti C Pkl ferences between the companies as to !them are numerous minor changes.: g i . 1 1 Sl Py A is efficient and public-spirited man- |Of the par value of the stock over T oS REPRESENTED BY REFRO-|SGipin MERCER A Nt E | now directed, anioon. oA on3 the terms of a merger of their prop-|more important than many of the ERain e nmchlt ATe REVIAE o :lfimgnl there should he lnux; mg‘\; |;r:\i¢;mt;m::|§ :fl:r:?l;ffiut?fit o‘r'";;ri;,"v‘u'rl"“‘r:rflflfl $16,200.037.47 & ‘Mw “l2, 1921, |ditions, will’ continue to Bive good | €rties were so great as to be irrecon- 'larger, which outline the Steady|jn ype m"h“_;"ac:;:'d‘;‘n";"w";jfi"';‘;;: ulty in agreeing upon a plan for - ashingto 2, 1921 5 cilable. 3 eadjustment. iy - operation of the properties in the amount between the two companies | "gonngton Railw To the Conferces ;:rXr'f; r'p'.'i‘i.c’:a'rh;: ARdi IR 2o o s confirecs therefore. on \day;prgle’c{;::h‘:fyrretujfl stores which na\-.-:‘:‘"’,'““l‘"‘ by dealers attending the interest alike of the owners and the |in proportion to the amount of their | 3 Inre: Merge (Signed) GEORGE E. HAMILTON, |17. 1921, after approving the above jreduced prices and taken their losses, i orn g SORYERTION of the Southeast: pablic. The dominant control, how- | Physical property on the basis of the In the course of conferences held.| (Signed) J. H. HANNA. " |statement of facts, adjourned sine die. | thereby suiting their trade to lower |yl poiie Daraware and Implement ever. by a 30 per cent minority inter- [ Priced inventories: third. the ascer-| Capital Traction j Lree suggestions of merger have been! Conferees ‘for the Capital Traction|C. W. KUTZ. JAMBES F. OYSTIR.|levels. have been able to dispose of | e S et D et it £3t to the practical exclusion of allzinment of the excess earning power | et of toial [ submitted by the respective sroups, in | Company: GEORGE E. HAMILTON, J. H |goods that were not even inventoried. | nees is showing fea simme ot tomioes” 70 per cent ownership and the rights jof the Capital Traction Company over | Washinzton Railway cider following: NN LTON E. WIL- | he g iy . Tnherent in Gt 1s repupnint to every |that of the Washington Rajlway and| Lompany—per cent of tota First. On behalf of the Capital Trac-| Second Merger Plan of W. R. & E. Efrfl?fi I.’:‘,{;‘,TO‘\ ESALES ST Reductions Insignificant. In the heavier wares, and eipecially sense of right and justice. Electric Company. | tion Company : *To Messrs. William F. Ham and Mil- 2 ' Price reductions on necessities have |in implements. the retailers are doing “The Washington Railway and| AS a first step the conferees for the e, Second. On behalf of the Washington | to E. Alles and the committee on T ibeen comparatively insignificant in ROUhINE. and they attribute this state Electric Company has repeatedly ex- jcommission took the balance sheets| EQUITY .IN STOCK. Lailway and Electric Company, and merger, appointed pursuant to in- jmost of the corner stores, and a com- |10t 80 much to the general business pressed_itself not only willing. but |of the two companies as of Decem- | (anital Traction Compans Third. On behalf of the Public Utli-| vitation of the Publie Utllities Com- plctely] satsfartory. cxplanntibn of] SN SRR ID She Eomtinned Suties in favor of a merger of the several |ber 31, 1920, as contained in their; "¢ hDElon Hail ties Commission. mission. the upholding of prices is still|johance of L‘; prices by manufac- companies because it believes that |annual reports to the commission for Considering thesc several sugges-| Gentlemen: The board of directors awaited. though retailers say that el . the hest interests of the public and |the year 1920, substituting for the| Total equity svalue tions in the inverse order of their|of the Washington Railway and lcredit, with ts cost and risk, is the Strike SR In Effect. ' the companies would be served by so |book value of their plant and equib-i Par value of stock. submission, the conferees of the Cap- | Electric Company has given earnest {chief reason why price declines have | The consumers' strike is still in ef- o doinz. That is the position of this{ment the priced inventories deter- | Capital Traction Compans ital Traction Company, respectfully,|and thoughtful, though necessarily inot been substantial. fect in %o far as hardware and farm company at this time. It will assent mined by the companies under ghe | Washington Ruilway and state that they cannot accept the sug- | hasty. consideration to the plan of | Conditions in the building industry ! implements are concerned. and the ro- to and st a merger upon any jagreed basis outlined 2bove. DDy e e gestion of the utilities commission. |merger outlined by the Public Utili- thave grown somewhat worse. On the |tailers protest that they are blame- basis that is fair and reasonable and | The equity in the stock was arrived | Tl par value po000000| While showing a larger equity and |ties Commission at a meeting on Mon- jother hand, there has been much ac-less because the replacement cost of ch will afford us a reasonable re- | at by adding to the priced inventory | Lew equity ' value 1379.057.26 | a larger earning power in the Capital |day last of the conferees to bring itivity in realty, and many sales of |their stocks has shown no apprecia- turn upon the fair value of our prop- | of the physical property of each com- Traction Company, and while show-|about a merger of the Washington| NEW YORK, May 20.—The unex- land have been announced. |ble decline. erties pany the other assots as they ap-| Indeterminate equits . ing al2o & HEht n that to|Railway and Electric and Cabpital | pected action of 2 Efforts to bring about wage reduc-! The views expressed by the hard- e et ot is proposed by | peared on the balance sheets of De- | Disceinn Be e I o e D T o e tion (companics: ed action of the Chesapeake and | i ng’in the building trades have been | ware dealers are representative. . the Capital Traction Compans for the | cember 31, 1920, and then deducting | bes et Tticipation in bossible| " This company has repeatedly ex-|Ohio directors in postponing action | futile, yet numbers of mechanics have ! convention is composed of small issuance of new securities by a con- ; the liabilities as shown on the bal- | submitted by the el S o ioaion | ressed its willingness to enter into | Upon the dividend gave a jar to parts | Scattered i@io the rural cities and | tailers from every bart of the terri e e e ot ae | anceishectas This wes slsimplc procs subm e ot e ool 1 ceeisinonll ortma o S e ket Jt|tOWus. where, it is reported, they are tory. and the So-called country mer wise acceptable. as they grant un- | ess, as far as the Capital Traction Lol o) ORI (0 e (e il Sl et O L Yy bond market. It | oG o less pay than is asked | chants predominate. The agreems fair advantages to the Capital Trac-| Company was concerned, as it is a the Capital Traction Company. but re- |§ reasona bl properties, with the re. | PFOUBHL about a rather violent de-|in the cities, And in the cities much | among them as to the status of their tion Company, depreciate to an in-j SIngle corporation, without owner- jduces it to the level of the common | (TE BT pt8 BrORCEHEs X has in | cline in railway convertibles, which | small building work, such as repairs, iness is as universal as it i< sig- defensible exient the assets of our | ShiD of interests in any subsidiary Hiectros ‘e Washington Railway and |, operties not included in the valuu- | were following the course of their |Sheds. fencing. cottiges and bunga- | nificant. and the same is iruc also of properties and deprive us of a rea- | COmpany. Electric Company. It does not give [ ProPertics not included in the valua- e lows, is under way on more favorable | their impression of general conditions sanable return upon the fair value Process Is Involved. EQUIT TOCK. IASI to the Capital Traction Company that | ¢q\ities ag it may have as the result | St0CK8: Chesapeake and Ohio con- !} 30d Yorms. The small work has as-, in the rural sections. thereof. In the case of the Washington Rail- | MEXT (RERRODUCTION CONT): status in benefits, that certainty in|of pending Iftigation with reference | Vertible Gs were the weakest, break- |sumed such proportions as to be al See Reason With Farmers. Lease Suggested. | ey and Electric Company, the proc- | N1 ‘EXckss EARNING POWER. return 4nd the security to which it) 5 valuation proceedings. ing nearly two points soon after the |factor in prolonging settlement of the| pouever much it affects them di- o S ess was more involved. as it includes | AND EXCESS E is entitled: nor does it provide that| ‘%7t WAt R ProCEeqingS: plan of the basic construction-industry problems. ey Tah h For the purpose of solving. if POS-: among its assets either a complete | (3Pital Traction Compan; certainly in control which the stock- has e ideration | !Vidend postponement was an- I st B T Dm Rt phh; sible. the difficult questions involved, | Investment equity . ol ] commission, it has given consideration| 'CN Ba DO o al e e their inability to sell farm implements e 1 Stock ownership or a controlling | [ndeterminate equit ders. because of their large equity |to both of these factors, and to that ore and Ohio con. as an encouragin, mpto Bt o gpd having due regard for the fair stock ownership of five other sub- . in property and its larger power, be- | extent th inciples laid down by |Yertibles, St. Paul convertible 4%S| Seasonal rcquirements have attract- | ‘g T 7 For A Pt Yalues of all properties concerned and | sidiary companics. The figures used | " ized lieve they are entitled to receive. | the commission are acceptable to us.. |2nd EFié convertible As all broke | cq laborers o the rural districts | frms their belief that the farmers S i L e o s SR L A T T The Second Suggestion The commission has determined the [More than a point on fairly large | where employment opportunities have o "ang ' diversifid. products coir the your!in the balance sh £ ; - 3 ransactions. 22 . fuzestion to'the committee of Con- | Traction. Company. Ang. the. conpolis | Per cent of par salue of stock The second suggcstion—that sub- | fotal equlty in stock of the two com-| "Reading 45 at 76 were still hanging | et i d{,:;’,‘.’;;’;;’fl;“‘:;fi;}:f}"}fi; L ne syt b ferces. that the Washington Railway, dated balance sheet of the Washing- ($12.000.000) to_total equity mitted by the Washington Railway |Panies as follo around their low of the year. Rock |iwork e TR g #nd Electric Company (into which ! ton Rallway and Electric Compan of $15.004,753.18. and Eletcric Company. does not, as Capital Washington | [yland refunding 48 were off a frac. | WOrK: : cumstances, it will be “all profit. should be merged tae Pot Elee- ) i RaBY P alroa 4 g Traction. Rail 4c”| In the glass industry bottle facto-; and enable the farmers to meet many rged the Polomac Elce- - attached hereto as appendices Washington has been alrcady verbally stated. | Uil 876k atpoal tion. On the other hand, railway | I a. - Furniture work-| if Fpite et el e i willing, pro-| From these figures the equity in) o Companr: =~ meet with the approval of the con- |i'n oo e minty 89718878 o~ § short-term bonds brought out within {Fic® hAYs reebenet, THIRILIES WOISI| A not all, of the obligations hansing passes the necessary: the 120.000 shares of the Capital| Investment equits ferecs of the Capital Traction Com-| e 5 ,037.59 | the last year continued to find a |ty £ 7 cents per hour, which I8! The merchants do not believe that <iclation, and *that such| Traction Company (par value $100) | pany. ¥ | mood market The Pesnmyivauta 3s |CUts SLE eouls oL e e et e e, legis'ation wiil a'so provide prover au-; was found to b $5713878.03, or In this suggestion the prov £ { held strong around 102, the Atlantic'¢duivalent to a reduction 5 i ncresscll s S thority for permanent financing for | $80.94 per share: in the case of lhe! 1 the control in direction for a liaited| 10 S Const. Tines at an tha CCALAntC cally 14 per cent. Meat packers are, for sporting gocds indicates that the the future xrowth of the conoildated Washingion Railway and Electric | g percentage;of period of the mersed company. Inc| Totals se52| Northern at 101, and a fraction high- °"""“‘:"gm’|‘l‘mj‘::’"‘:;n:?$ e doeny o {;fi’(';‘“;jd“;;d"’,figf,;‘g“;‘u,‘,“;;’ aunt nq.r]r:&-:::.&lrme At Company the equity in the lufl.DDO’ sisted on by the Capital Traction | er, and the Chicago Northwesterns ;:;Ti{mness. ! as it does that these more useful and ital Traction Company at a rental of: $340.000 per annum for a long period : of years, and_in addition. pay interest on bond indebteincss not in excess of shares of stock (85.000 shares pre- ferred and 65.000 shares common, each of $100 par value) was found to be $7.689,392.88, or $51.11 per share. In any liquidation of the property | Zquity in common stock oF, per share (65,000 sh: Explanation of Figures. In using the figures in the preceding Company. is resented as wanting in | Propriety and justice because. as as- serted in the “suggestion submitted, the reproduction value of the Capital is much smaller Exceas Earning Power High. In the above determination the ex- cess earning power of the Capital Traction Company has been cap up from 100% to 1013. Other Insu Soft. interborough Rapid Transit 5s, con- tining their reaction, dropped down Decided improvement is evident in the banking situation. The financial strain is diminishing steadily. Com. mercial loans are now made at rates ! country. productive diversions have taken the place of joy-riding. The slogan in the the merchants remark, is ‘Work and walk.” whereas a year ago Traction Company It was “Ride and loaf.” s e v 2 . i a 2,500,000, an amount which, 3 v 7 7% = gums for depreciation according o the terms under which it was issued. | 1" actustiy an cquits. in the stock of | Fhe rar eoiric COmPANY ock. |NED. especially as compared with | jower. selling Just under 101. cent a month ago. And loans are ne- | NOTES. fair rates of depreciation to be pre-|has preference over the common i . ¥ ; NEW YORK, May 20.—Wholesalers seribed- and enforced, if possible, by .Stock to the amount of its par value, | . 5 9518 - r pany, which in every way has and|at 98% and Steel sinking fund 5s N . the Public Utilities ‘Commission: oy together with all acerues Biviaaiue: |and L 882, T pec el et | N the value of property. In other|shouid be entitled to as high earning | gained a. trifie to 934 . Government |c) at » Spirit Reported jand jobbers report that there are en- instead. if desired, {The amount of the stock equity, $7.- | Driceo JRVENIOTIES o e et [ \wo-ds, the stock stands behind the power as the Capital Traction Com-|issues were not much changed. Ke- |- Let’s GO’ Spirit Rep e s “The Washinstoi Railway and Elec- | 688.39288, would. therefore. give. {o | PTOPErties of these companics, used as| bonded indebtedness secured upon the | bany. in addition, it must not be for- | mommic o Chite oo ciCrongsd; Re- 4 5 2 are breaking away from their recent \ tric Company will agree to merge and | the 85,000 shares of preferred stock a |2, 0281 In these calculations, is an as- | property, and when, aceording to gotien that prior to the war, in 1917.| cover and were freely supplied at Dominant in Detroit Area | po! o mch ord to the sicck of the Capitaljvalue ‘of $90.15 per share, Iaving the | sumed fgure: it iy the only assumb-rule the respect values of the most the Capital Traction Com-!96 to 95%. Norway 8s were steadier g it L el g o e S e action " Company the same brivi- | 65.000 shares of common’ stock with: | ton that could be made b which 1o | companics are Tooked into. 1t Will be ! oy vss Able 1o pay At any (me|oe S000 * Freoen Bs mers anorcadier BY PHIL S. HANNA. | wholesale prices have about reached enjoyed by the r - jout any equity, considering only the|OMPare the wvalues of the respective found even allowing to iupon its stock was 6 per cent, and|at 99. Mexican government issues, i a1 Dispateh to The Star. D s Tars i s Lolders of the Washineton Railway |Teproduction costs outlined above, | Proverties of the companics. Tt ixnot: Was Gl the year before was compelied to re-|after sesterday's sharp fall. were|™L,rmpour May 20—The sentimentInormal changes of & normal market and Electric Company ; that is to say, Purpose of Commission. tHoRcatmvalueio it cip, ties as the ned value. including duce its payments to 5 per cent. while | somewhat better supported. ti. 3| D! . =D O s ach to have preferred dividends at The purpose of the commission in New RUBBER |—coypon Attention---Housewives| 4% i the two companies of $15.008,753.18 ccmmission has determined it. Garbage The commission’s plan contemplates ! e Poto Electric Power Com- holders is In the cquity rather than | o Which. s s doubtful value failing lis Power Company and | amounts ho amusement proper: {the Capital Traction Company stoel appropriate that set aside depreciation. to for its recent prosperity was due almost - iwholly to war condi and ¢ excess war earnings enabled the com- ston Railway and|pany to restore the deficiencies in its physical properties. Further, the Capital Traction Com- pany, by reason of its limitations would seem to have approached the crest of its earning power, while_ the than the Washin, Electric Company. The Capital Traction Company has a very small bond issue, not maturing until 1947. at a low rate of interest. ‘The Washington Railway and Elec- Mexican Petroleum $s were stronger | gotiated more easily. about the business trend which is evi-| dent almost everywhere in Detroit now ! reminds one of a prize fighter who has been seriously overweight but who has The size of present orders still is a good deal below normal. but is a vast improvement over the haphazard pur chasing of the last five or six months. per cents just above 50 and the 45| around 37. Up to a late hour no announcement | ] > i . of ah- - e 3 LARGEST DISTRIBUTORS OF ARMY AND NAVY GOODS SOUTH OF NEW YORK {holders’ have s larger cauily on the | normal aAnd cemparary Chiracter, and | had PESt Mmade, ferurding (he wour, |fnally trained ‘himeelf down to fght- |Sfay normally 15 a lght month in ibasis of valuation by the Utilities, during this period it is admitted the|Light, fifteen-year 71 per cent de- |IP8 Weight and ls anxious {0 start. . :wholesaling, and therefore the in- U. S. mmission. and on any other basis, | G g | o There is a “let’s go” spirit quite evi- | oreased activity of the moment is one benture bond issue. | These bonds were put out this morning at 98% to yleld, 7.65 per cent. FRENCH EXPORTS GROW. dent on all sides and some things have happened which make observers think the time is almost here. The weekly clearing house bank statement today shows continued liquidation of the bor- rowed money obligations of the banks, the total of such liabilities dropping of the most encouraging signs of a situation which has been nong too bright. * ¥ K ¥ CHICAGO. May 20.—ITt odd angle of world affairs that Amer- i seems an i Second—A proposition and * Third—The suggestion of a belief ! that it could, and would, purchase the ® dctermined by the commission, namely: Capital Traction. .. $15,008,753.18 Washington Railway. $14,491,246.82 months, it is_definitely announced here by E. E. Fisher of Toledo, Ohio. glass chemist and expert, who will be assigned as manager of the en- Liquidation of Loans. Today’s statement also shows that liquidation of loans has proceeded to is a most hopeful sign to the farmers for with money nearer par than it ha: been in the last year and a half Eu- BOOTS BRING THIS COUPON AND YOU CAN BU | trie Company has a very large bonded | Wasntngton Raflway and Liectric Com- ay 20.—Import ; 5540,000.000 o Dot the | 1can farmers In the Ereat morthwest ; o 3 .— s for the[down to around $40,000, h N0y Cans F rtevens, °A Yaren be At & hiEh rate | pany, with its far more extensive sys- | o EAFEN MAY, SLTIMROCS for G0 | SOUR, 1 “Coutiey banks in the Detrolt | should be studying day by day the . | must be refunded within the next few | LM tofether with the Potomac Blec- | roq5ed 5,750,000 francs and exports | subdistrict of the Chicago reserve bank. | exchange rates of the internationa Wi C mustoe s next few tric’ Power Company, with its aimost which compares nicely with $65,000,000 | money market. The farmers realize it] over ears, probably at u 0ok : increased 1,112,000,000 francs. p: O int-rest. When ‘thest fastors ave Enlimited field of expansion, has a far : a month ago. ;. at last that they are vitally interest- == il POnCrly analvred it L piClors 7% | areater earning potentiality in the | Furthermore, the deposit trend con-|ed in the buying power of world e , [ e Valie or thelr equtty s s teorqs { Sears to come. However, assuming for| NEW PLANT FOR KNOXVILLE. ; tinues in the right direction, the total i moneys. The prospect of a bumb v Dotedit o aver 1o ngly doubtful. WLy 15 escerd- {iha moment an excess of earning pow | o { crossing $100.000.000 ‘for the first time {crop in the northwest this vear hi Ln:: ozrpn ::k' Frostcfimnnlutcd Sugar. | ingly e NN B ler so capitalized a‘nd rg.— the purpose flfifl;"(:dl‘h_!;& ifi:lé-m}“liy"vi?;;‘; since ear;y in lemiar - r'rhcm:i:nv::ée made the inten f;‘ n Europe’s pur- Pai imit. o-1ds . reefold Ponttion. f co-operating with ‘the commission | Rlass-produ oy so far as bank returns S Eing s owEs LA AR anbre Ioute f5 Alrasl'r 2,000 LBS_ O QSTENT omer | In their sugsestion the position;in bringing about, if possible a merker, an expenditure of a rr;(l::’t;r;“'}g":;%;gmed. occurred last week and T L eae e Attt n oAb 1zes . e S i take v _the Washington Rallway and | we will accept, subject to the approval | W e e8! = e | May 1 the banks have regained more surplus to make prosperity in the £ F BEST WASCO COFFEE. ?3c LB. E Company is threefold: iof our stockholders, as a proper basis|the plant will "F‘ gf"‘;""! “"l*‘ €a- ! than total deposit losses since Decem- | 3merican farm communities. The re | —An offer to lease. ! merger the respective equities as|Pacity forces within the next six|,g cent rise in allied foreign exchang: } i a point where the aggregate again drops | rope again begay buying. Would Scale Down Equity. If the Capital Traction Company’s equity in stock is to be scaled down to $12,000,000 of par value, that is, 95 per cent of its equity, ours, sim- Capital Traction Company and pay therefor $90 a share. The first and third propositions need not be discussed. In the second, terpris Quaker Corn Puffs. ................ .7¢c ; Jars Best Mustard. . . New Steel Cots..................$3.00 the proposition of Mosquito Bars............ .75¢ mfi.'g;ir'c Company states 3 witling, | Jarly, would be scaled down to 311,- 1Y lbs. Karo Syrup Khaki Breeches. Gl et .75c Jjness to— i, vy o ce us om are ese . Recl. Overalls & Jumpers, suit Web Army Belts 5 .25¢ Trion Companoknof the Capital|mined, eversthing considerea, that in Rec!. Raincoats. .......... $1 and $1.50|4 Yards of Fine White Drill .50c leges as enjoyed by the preferred g:r:':a:; E;thqé?&e&z;xs;fi?‘:; - White Coats & Pants, each......... 75¢c|U. S. Army Locker Trunks........$5.00 || shurcnolders "ot ihe Svashingion | S0h0T00"of Stock Bhd thelWashiag. an : ew rices = and Elec ton” Rallway and Rlectric Company Officers’ Raincoats. ...............$4.95|New Army Plumb Axes.......... -$1.00 | that is to say, cach to equities represented by $11,585,751.82 Officers’ Sued= Coats dividends at the rate.-of 5 per cent ....81250 of stock—in short, that the net equi- U. S. Army Picks (with handle)......75¢ 5> E . with a second 1L C ~ . . . . gecl.f Steel( Cots. oy -++----$2.00|Silk Floss Mattresses..............$3.00 ' ok tofthelmani ariine |11es of G5¢ Ewolcompanles ariasiroxs Note the verr substantial reduction which has been made in : Comforts (specia il oss S oA e e aban v v 3 - 1 In ¢ ' 8x12 Pyramidel Tenea ") e eoeoe 50c || ru of 2 per cont persomum, the [ AD obvlons srror was made, how. FEDERAL TIRES, both FABRIC and CORD, and which in con- ceeeeee.....$30.00|Recl. Ticking Mattresses. . ... ... Fatlway and Bleotrie Compant s |submitted, in depriving the Washing- be converted into the same number |ton Railway and, Electric Company of of shares as present of common |itS net equitics in $11.585,751.82 of stock, without par value, and both | 5tock by deducting from the equity of preferred and common stock to have | the Washington Railway and Electric voting power.” Fummny $8,500,000 olkpref(erredvlvtock, While criticising, Derorates lgaving common stock of the Wash- e LG m’;“a,".,’.‘r‘f;‘; ington Railway and Electric Company tion Company ‘in insisting upon con- | 2" equity of only $3,085751.82, ae trol, this provision. submitted by |Manifestly the common®stock is en- them. if accepted, would compel thetitled to all the earnings of equities stockholders of the Capital Traction |OVer and beyond the preferred stock, junction with the EXTRA §ERVICE they give, makes EDE 000 FOLDING ARM CAMP CHAIRS Suitable for Porches, Boats, Etc. 12-Ib. Can Bacon No. 24 Canned Apricots. . . . 6-1b. 6-0z. Can Pumpkin. . Heavy Khaki or Duck TROUSERS, 53 New Khaki Pants...........$1.95 New Khaki Pants...........$1.69 $2.98 New Hob-Nail Shoes. ... .. . “‘ompany, entirely satisfied with their, Which is only 5 per cent. €an Baked Beans i Re;l lShoet (repaired and rubber nresent position, with evers eoar | o By jleducting the 38,500,000 of pre- L - Ao e e fdence 'in management hich | ferred stock from the equity values Hominy Grits. .......... S e eels) Joeosecaoct i IR AR TRe e ey which the Washington Railway and 5 Libby’s 1-1b. 6-0z. Corn Beef. .. Army Camp Chairs. .. ... Seoshahe $1.25 |has been safe. conservative and pru. | Electric Company is entitled and Blv- " H H dent, and whicl a8 always ved | ing to e common stocl only € e 2.lb. Can Roast Beef Sanitary Kitchen Table Tops.......$1.00 |[4:n" and which has alwavs serv | difference. the effect would be to pass the BEST and MOST ECONOMICAL BUY FOR YOUR CAR 1-1b. Can Corned Beef Hash. Boy Scout Knapsacks...............25¢c holdings have a larger equity in any|to the Capital Traction Company a 13 C . C Offi ' N Putt combination. to turn over the abso- | share all the equities in $8,500,000 -0z. Can Pirika Cocoa. . ... icer: ew Puttees........... .. $5.00 lute and unqualified control of their|of stock after paying 5 per cent. - Fine Orange Pekoe Tea, Ib. . . . Propestics tonthe managementiofitiie hwhichithelcommissionihas alteadyiae FABRIC TIRES Washington Company. The suggestion of the Washington Railway and Electric Company re- duces the stock, now yielding 7 per Railway and Electric|termined belonged wholly to the Railway and Electric Company. This, however, is easy of solution. The Capital Traction Com- pany is entitled, according to the com- mission’s method, to total equities represented by $12.000,000 of stock and the Washington Railway and Electric Company to total equities represented by $11,685.751.82 of stock. The Washington Railway and Elec- tric Company will distribute its stock among its own preferred and common stockholders, or otherwise make suit- able provision, according to thelr re- spective pricrities. This is a matter that naturally concerns only the stockholders of the Washington Rail- 2,000 0. D. WOOL BLANKETS...... Aluminum Canteen and Cup Army Khaki Socks, 2 for 25¢ 9x9 Pyramidal Tents............$30.00 16x16 Pyramidal Tents...........$35.00 O. D. Wool Army Shirts...........$1.25 New Army Shoes, $4.45 Russet Washington TRAFFIK TREAD OLD PRICE NEW PRICE $1555 $12.85 15.00 19.50 24.00 20.25 26.90 30.30 CORD TIRES RIBBED TREAD PLAIN TREAD OLD PRICE NEW PRICE .$1500 $11.85 1850 14.50 RUGGED TREAD OLD PRICE NEW PRICE $1945 $16.50 20.00 2600 3035 25.95 34.40 New Blue Denim Overalls. . .......$1.47 New Blue Denim Jumpers. .. ......$1.47 Recl. U. S. Summer Underwear. .. ...35¢c New U. S. Summer Underwear. New Fine Jean Drawers. .. New Khaki Shirts cent, to the level of a 5 per cent pre- ferred stock, with a second prefer- ence as to dividends. In other words, it makes the 5 per cent a certain re- turn and the 2 per cent a problemat- ical one. Again. it does not give to the Capi- tal Traction Company a participation lin any possible future increases to {the value of its property, or recog- nize sufficiently its greater earning power. The first suggestion submitted was 37.90 NON-SKID TREAD [ ¥ the Caital Traction Company. * | way and Electrie Company: and the CLD PRICE NEW PRICE oLD price NEW PRICE Ve thin in view o urther con- | legal rights th cl: B f st 2,000 METAL BOXES. .. | sideration given in tho HEht of con- | wiil neCeSswTily bo Fespoeted and ook S5m0 5 .. . $3425 $21.50 ference discussion, that our sugges- {tion should be amended in some par- | ticulars, and to accomplish this sub- mit the followin, Revised Plan of Merger. served. Would Exempt Funds Set Aside. The funds now being set aside by order of the court for refund to con- sumers of the Potomac Electric Power Dbl i, $39.10 4970 5895 Officers’ and Navy new Shoes, $5 .45 Both High and Low Lasts, in all Sizes 41.15 52.30 62.05 '$34.60 44.00 52.15 36.40 46.30 54.90 Army Pup Tents. ... Canvas Folding Cots . No. of - - Company if the litigation results fa- vom. “hares. ParVale.| yorably to the consumers should not Army and Navy Goods i SoierTats e paaamers thcuid, hot 7350 65.05 7735 68.45 cumulative preferred stoch At best, it is a Wtigation; the Capital . GE | participating _in excess Traction Company has and could have ] o [ caminga over 7% on com: from no viewpoint of faimess ‘any m erl - Ire Ru r Lo = mon i o the exten possible interest; the funds, eter- New and Rochlmed of gne-hait. .. 120,000 12,000,000 | mined to belong to the Potomac Elec- p L] | pecerie "> Company: e Carnings Which would heve poen S Floct Lycire earnings ave been dis- 933 5th Street N.W 1348 U Street N.W. 1t famesines Sitnecialerg {ributed This tiem: should be-sexts: 1235 N. Y. Avenue N.W. 303 5 W, €e V. and U) | non-participuting .. 85,000 8.00,000Bated for the benefit of the Eotomec Wi ington Ra nd " ant ‘ashington iway subject o Ph F uinz132 - 4 (George- Electric Company: com- the contingencies, one Franl 10th Street N-W. 3052 M Street NW. o7 | e oot eom S : mon stock . 30,858 tion of the commission the following: p 11094 H Street N.E. — It found the equities of the Capital 235,858 $23,585,752| Traction Company: amounted to $18,- ANl stock to have equal. voting power per] 006,753.18, and those of the Washing-