Evening Star Newspaper, November 15, 1925, Page 5

14 MARGARET GORMIAN V. GAHILLS BRIDE Miss America Title Winner! Weds Realty Operator in Baltimore. Miss Margaret Helene Gorman, *Miss America” of 1921, daughter of Mr. and Mrs. Michael Joseph Gorman, 3016 Cambridge place, surprised many friends in this city by her marriage vesterday morning in Baltimore to Victor Cahill, local real estate oper- ator and builder. Their engagement had been announced since about the ! first of this month, but the wedding | was unexpected to all save the imme- diate families of both. Announce- ments were being sent out last night. Miss Gorman and Mr. Cahill, ac- companied by members of their | families, went to Baltimore vesterday morning at 11 o'clock and were mar- rled at St. Ignatius Church by Charles J. Hennessey, formerly of Holy Trin ity parish of this city and a friend of | the Gorman family. The bride was gowned in tan georgette with hat, shoes and gloves to match. She carried a corsage of orchids and lillies of the valley. The | maid of honor was Miss Elizabeth * Gorman, sister of the bride, and the best man was Robert Cahill, broth- er of the bridegroom. Following the ceremony there was a wedding breakfast at the Belvedere Hotel and the couple left Baltimore by automobile late in the afternoon for New York City. Upon returning to Washington they will make their home at the St.” Nicholas Apartment, on Cali- fornia street. The groom is a son of the late James A. Cahill, Wash- ington banker. . " PHENOMENAL RISE IN W. R. & E. STOCK LAID TO BIG POOL (Continued from First Page) made in the form of reduced lighting rates effective January 1 next. Purchasers of the issue at these out- of-town points are acting on the broad hypothesis that any well managed public utility stock is worth 10 times its earning power, using other similar companies as a standard. This earn- ing power of the security under dis- 1 cussion is estimated, variously by the different members of the pool, through the medium of private calculations, from a minimum of 38 per cent to a maximum of 45 per cent, after deduc- tion for fixed charges and depreciation. Considerable momentum is lent the selling movement, particularly in New York City, where a report has been broadcast that another special divi- dend, possibly 20 or 25 per cent, will be declared on common shares abou* January 1 next. Mrs. VICTOR CAHILL, “Miss America” of 1921. before depreciation. has increased in the same period from $814,845 in 1919 to § ,694. The improvement is be- ing continued this year as shown by the fact that gross for the first six months aggregated - $3,524,793, com- pared with $3.158,412, and the net stood at $1,267,477, against $786,619 the same period last year. “Valuation and rates had been a constant source of trouble to the com- pany for some years, but an agree- ment was reached with the Public Utilitles Commission at the close of 1924, which settled such disputes and served as a basis for the, establish- ment of rates in the future. Under the agreement the value of its prop fixed as of January 1, 1925, , and the allowable re: uation after deprecia tion was fixed at Tl per cent. Rates have been adjusted on that basis. Fur- ther lowering of rates is provided for if return in any year exceeds that amount, and it is also provided that if return falls below that figure rates shall be adjusted accordingly Washington Rwy. & Electric’s Equity. “As there are but 57,000 shares of Potomac Electric_common stock out- standing, the holder of 100 shares of Washington Railway & Electric has an equity interest in 88 shares of that stock. Dividends are being paid at the rate of $12 a vear, but if the par- ent company’s equity in undistributed earnings is taken into consideration, its earnings were equivalent before depreciation last yvear to $34.76 a share on the controlling company’s shares. Clients of the group now engaged in distributing the security are being made fully acquainted with what are referred to as “hidden” earnings or important adjustments which do not appear in the published earnings of the Washington Railway and Electric Co. proper. Attention s called to the fact that the carrier has failed to take advan- tage of the entire earning power of its subsidiary, the Potomac Electric Power Co., dividends drawn from the latter company having increased only slightly as compared with the rapid increase in its earnings in recent years—all of which is true. More- over, those selling the stock assert, the company fails to take into ac- count the very generous allowances for depreciation made by both com- panies, due both to the pecular ac- counting rules of the Public Utilities Commission here and certain_ stand- ards set up in connection with bond financing. It is charged by them that the amount set up for depreciation exceeds a fair normal amount as tes- tified by the rapid growth of reserves, that of the Potomac Electric Power Co. being now equal to nearly 75 per | cent of its common stock. All of | these factors help to obscure the high i | | . merit back of the issue, it is said. Depreciation Scales Differ. Depreciation accrued by the Wash- tngton Railway and Electric Com- pany is on a straight line basis, while Potomac Electric Power depreciation is computed on a sliding scale fixed | by court order. For instance, on tha| depreciation reserve of the Potomac ( Electric_Power Company as of De- cember 31, last, approximately $4,000,- | 000 interest will be accrued on a 4 per cent basis and as an accretion to the reserve, lessening the amount of depreciation to be included as an ex- pense of operation. Depreclation is based upon a raodified straight line basis, from 2.3 per cent on the vaiue of the company when the deprecia tion reserve is below 15 per cent of total valuation to a smaller per cent, which shall be such as to not make the total of depreciation reserve in excess of 20 per cent of the value of the company’s plant. At firsc glance the high estimated return of 45 per cent on the common ghares of Washington Railway and Electric Co. would seem inconceivable, but a Boston house readily proves by hard, cold statistics that such is not the case. This house points out that the Public Utllity Commission here ellows a return of 73 per cent on its valuation of the power plant, placed last January at $32,500,000. To this figure is added $1,400,000 for improve- ments and additions, alleged, to be added up to October 1 of this year, making a total plant account of $33,- 800,000, Estimating the working capi- tal of the plant at $1,000,000 (which is not allowed by the Public Utilities Commission, but is immaterial in the tabulation), making the total structure valued at $34,900,000, the returi aliowed by the Public Utilities Com- mission would be 0,000, or 7% per cent of the total valuation. ducting from this amount charges of $832,000, consisting ot 712,000 of bond interest on $11,300,- 000 of bonded indebtedness and $120.- 000 annually in dividend on the re- | cent issue of mew 6 per cent stock, there would remain net earnings of $1,788,000 available for the 60,000 shares of electric stock (all of which is held by the Washington Railway and Electric Co), or approximately $30 per share after depreciation. There are 65,000 shares of Wash- Ington Railway and Electric common which would have an equivalent carn- ing rate of about 27 per cent. That the power company will make more than its allowable return is attested by W. F. Ham, president, who, a! few days ago, intimated there would be a voluntary reduction of light charges next vear sufficient to use up at least $400,000 constituting excess earnings. Esteem Is Revealed. The best illustration of the high regard in which the stock is held in New England is found in the follow- ing copyrighted article, appearing in the Boston Transcript on Wednesday, November 4, which is substantially the selling argument advanced by the mrajority members of the syndicate in distributing the issue. Headed “Some- “Earnings this year, as indicated above, show substantiai improvement over those of a year ago, and if the gain continues “should amount to around $55 a share on’ the Potomac stock and the equivalent of about $48.50 on the parent company’s shares after all charges but before deprecia- tion. “The Washington Railway and Electric has a capitalization consist- ing of $19,115350 in funded debt, which is followed by $8,500,000 in pre. ferred stock and $6,500,000 in com- mon stock, both of $100 par value. “Last vear's balance sheet showed a strong current position with total quick assets of $4,912,000, against current liabilitles of but $351,000. .In addition, the company had an equity of some $3,000,000 in the special re- serve fund in the treasury of the Po- tomac Electric, bringing the total of net quick assets to $7,360,000, or more than $110 a share on its com mon_stock. “With its excellent management, growing territory and with valuation and rate matters satisfactorily set- tled, the future of this company looks promising, and the high ratio of earn- ings to current market prices makes it attractive as an investment. Another Factor Involved. The fact that the North American Co. owns a substantial interest in the carrier carries considerable weight with recent buyers of the stock. While this company has repeatedly stated that it is a public utility hold- ing company, and not interested in active management of their affairs, nevertheless these customers appear to accept these statements “with a grain of salt,” holding to the idea that the Potomac Electric Power plant would fit in very logically in the { “tving-up” program which is develop- ing so rapidly throughout the East. As a part of the great North Amer- an system, the local lighting com- pany would be assured of a very favorable position with regard to this development, they say. There is, generally, a mistaken im- pression, particularly in New gland, that North American Co. owns 75 per cent of \Washington Railw lec- tric stock. This impression is accent. uated by certain circulars describing the issue which, unwittingly, sheared the preferred stock of the company, amounting to 85,000 shares, of its vot ing power. The North American Co. does, however, own 75 per cent of the common stock and a nominal amount of the preferred, but is not active in either market at this time, according to their spokesman. More- over, they refuse to ver a rumor hat they had offered xcess of 180" for a block of 1,000 shares of com- mon available in a certain quarter of New York City, as stated by at least three members participating in this latest selling movement. A New York member of the pool as serts that Railway common stock is | selling at only four times its earning ! THE SUNDAY STAR, WASHINGTON, D. C POETESS' FATHER MAY SUE CRITICS Says He Has Conferred With Lawyers on Accusations of False Claims. Special Dispatch to The Star. NEW YORK, November 14.—The question whether Nathalia Crane, Brooklyn's 12-year-old poet, wrote the two volumes bearing her name may be settled in court. Samuel Crane, her father, announced tonight that the “matter of the attacks on the au- thenticity of her work has been turned over to lawyel Mr. Crane sald_he expected a re- port. Monday or Tuesday and would then formally announce the identity of his counsel and who would be pro- ceeded against. Libel action will be instituted against anyone who, the lawyers feel, has gone beyond the law in the discussion as to whether Natha- lia deserves to be called the most re- markable child in the world, or whether the two volumes are just a “genial hoax" put over by six young poets, as intimated by Edwin Mark- ham, honorary president of the Poetry Society of America. Deny Writing Poems. As a result of Mr. Markham's state- ment, the names of Louis Untermey- er, Edna St. Vincent Millay, William Rose Benet and other poets were be- ing whispered today. From all men- tioned, however, came emphatic de- nials of any part in the poems cred- ited to Nathalla and in some cases unstinted praise for the girl. Mr. Untermeyer termed her a genius and in a reading he gave today at Lord and Taylor's Auditorium, in- cluded her in his list of great poets. The audlence applauded her name en- thusiastically and finaly forced her to read some of her work. “It is ridiculous to say that any one helped her,” said Mr. Untermeyer. Mr. Untermeyer,” said Mr. Crane, “has known Nathalia only since April. She been writing poems for three years. She has never even met Mr. Benet—when he bought some of her poems, he dealt only with Mrs. Crane. The only help she has had came from those diction- aries"—pointing to several _well thumbed volumes—“from her books and from the stories of life, the sea and the war that I have told her. Sings Poems to Herself. “Nathalia sort of sings her poems to herself—they come into being that way. She reads Kipling constantly and Conan Doyle is her favorite. The only poet she likes is Longfellow, but she is not enthusiastic about him. “It 1s absurd to say I may haveq written some of her poems. True, 30 years ago when I was a young Jackfool I had a volume of my verses published. It was terrible junk—I haven't even a copy now. Her work try—mine was just silly kid While Mr. Crane was talking, Nathalia herself came in—a very tiny, physically immature looking ~ little girl with a thin, high voice and flufty bobbed hair that stands straight up in the wind “The Janitor's Boy." “Roger Jackson is the red-headed janitor's boy about whom I wrote that poem,” she said in referring to the poem, “The Janitor's Boy.” “Roger and I built a raft and we tried to float it down the street after a rain. Roger still comes to see me—every Thanks- giving.” The Cranes lived at 781 Ocean ave- nue, Brooklyn, when Roger's father was janitor there. Her favorite poem of her own s one dealing with the inside of a newspaper office and written after a paper sent her to Pennsylvania to interview Wil- lie Cavaller, the 15-vear-old boy who killed his grandmother. Nathalia con fessed she'd like to go into newspaper work—but no more of prison assign- ments. Story on Cavalier. The story she wrote about Cavalier, written in a hurry and under stress, is cited by her father as proof of her knowledge of words. One line refers to the “cubicle of steel’— the prison— and another reads: “But Willlam Cavalier s an argo- naut whose ship has stunbled over the threshold of the dariest of all oceans. The able seamen )f his gal ley are the wardens of :| Pennsy power, while other utilities are at a level at least ten times their capacity. Included in the latter list is the class “A" stock of Associated Gas and Elec- tric, earning $3.32 and selling at $35; North American, earning about $3.47 and selling at 72; American Light and Traction, earning $14.40 and selling at 3, and Consolidated Gas, earning $9 and selling at 94. This, in his opinion, is due to the fact that earnings have been largely hidden; that the regular dividend rate has been held to $5, and that the North American connection has not been advertised in a broad sense. The consolidated net earnings per share on Railway common (Washing- ton Railway and Electric and Potomac Electric Power Co. only) for the last four complete years are taken from records of the Public Utilities Com- mission. Per common share. $18.11 2 1.359.043 These figures do not include the earnings set aside in reserve, amount- ing to about $3,000,000, that were re- turned to the company. These would have to be estimated for years. Hotel Inn Phone Main 8108-8109 604-610 9th St. Nv{ve. 7 rooms, $0 weekly: $10.50 rooms H shower anc atory., ‘lzn Tt 190% mabre. Booms like Mo simple and practical For each $50 or fraction borrowed you agree to de- posit $1.00 per week on an Ac- count, the pro- ceeds of which may be used to cancel the note when due. De- posits may be made on a week- ly, semi-monthly or monthly basis as you prefer. THE MORRIS Loan $100 thing About the Potomac Electric,” ' the article reads: “This company has a wonderful rec- ord of earnings, its gross having risen from $3,602,567 in 1919 to $6,235947 in 1924, while the balance available Easy to Pay The terms of Morris Plan Loans are and fair. Loans are pass- ed within a day or two after filing application — with few exceptions. MORRIS PLAN notes are usually made for 1 year, though they may be given for any period of from 3 to 12 months. PLAN BANK Weekly Deposit Under Supervision U. §. Treasury 1408 H Street N. W. “Character and Earning Power Are the Basis of Credit® vania prison and the creeping things that slumber in the siit of the first blood have risen and bound him with their tentacles.” Nathalla recited some of her poems, speaking in a singsong fashion and keeping time with her hand. Some days ago, her father said, a newspaper man asked Nathalia to write a poem in front of him as a demonstration. In 15 minutes, ac- cording to Mr. Crane, she produced this verse: Lo and behold, God made this starry world, The maggot and the mold, Lo and behold. He taught the grass contentment blade by blade. The sanctity of sameness in a shade. John V. A. Weaver, a young poet who formerly was literary critic for the Brooklyn Eagle, today gave that paper a statement saying he did not believe Natalia could have written the poems carrying her name. “Weaver saw her only once and then for just a minute,” said Mr. Crane. “First we have the dodering Markham with nothing to do but at- tack a little poetess he has never seen. Now comes Weaver with a statement in the paper that once paid his salary. Tomorrow, some office boy, I suppose.” The Investigation that is most needed is the kind that comes before- hand, not afterward. e SN2 $5,199,000 IS PAID ON DEBT BY ITALY AT PARLEY’S CLOSE (Continued from First Page.) Count Volpi will investigate the great hydroelectric development at the Falls, a source of power, which is increas- ing and becoming a growing source | of national wealth in Italy. Count Volpi's party will return to New| York tomorrow, and it was under- stood the debt commission and the members’ secretaries and experts would sail for Rome in two groups on November 18 and November 24. A series of social functions awaits them in New York. By funding, Italy tenth power to come to an agreement with the United States for amortiza- tion of its debt in 62 years. The only debtor owing more than $1,000,000,000 remaining on_the unfunded side of ledger is France, which recentl; iled after a week of hectic nega tiations here, to arrive at a settle- ment. Italy's is the fifth agreement to be signed since Congress adjourned,and with the other four, Belgium, Czecho- slovakia, Latvia and Esthonia, will rded by President Coolidge to becomes the NOVEMBER 15, 1925 PART 1 Congress shortly after the convening of the next session in December. Five Pacts Approved. ‘The other flve agreements ap- proved by Congress are Great Britain, Finland, Hungary, Lithuania and Poland There are still nine debtors listed on the Treasury books, the only fig ures of any considerable size being chargeable to France. Good pr pects for settlement remain in the case of but four more in the next months. Rumania has a debt funding com- mission in the Capital with which conversations will be resumed some- time early this week. Greece, Jug slavia and France are the others likely to open negotiations soon. Debtors from which little is expected include Armenta, where there is no government; Russia,” not recognized by the United States; Austria, given z0-year moratorium by_special of Congress, Liberia and Nic: By far the greater part of the more than $12,000,000,000 debts owed the United States has been funded, and if Congress approves the agreements al ready arrived at, and equal success is had with thé four in prospect, the principal work of the American debt commission may be expected to near an end soon. Informal convers bly be resumed cholas Titulesco tions will Tuesday president proba- between of the RING Set in beautiful 18-kt. white gold, hand-pierced mounting. Has the appearance of a 2-carat solitaire. Pay Next Year 75 Pay $1 a Week v SR SN S ANNNN7777; 22, It's Just Wonderful! You'll just “rave” about this magnificent, fiery Soli- taireDiamond, set in an exquisite 18-kt. solid white gold mounting. $100 Pay $1 a Week Pay Next Year <~ S22 o 8Day Guaranteed American Make Mantel Clock Mahogany Finish 19-Inch Base $Q.75 Pay 50c a Week and Pay Next Year All standard make mantel clocks, Including Seth Thomas, New Haven, Ansonia and Gilbert' “Chimes in Normandy and Westminster. Regu- Iar cash_prices on dignified eredit rms. To deal with Kay in Hke dealing with your bank. No red and “no collectors NNSZZN\NHs7z2Z tape to e UL from us we will pack, 2\ world AN 2 W “Charge It”’ D 22 SN Any article purchased A2 AWZ2NN NN SIS WRIST WATCH Pay Next Year A popular model that com- bines beauty with absolute Reliability. 15 jewels, guaranteed move- ment, in @ guaranteed 14-kt. solid white or green gold case. Our guarantee is a new movement free if old one fails to give service. 273 —And you can pay for it as convenient. Pay 50c a Week (SRS, Beautiful 3-piece Toilet Set, consists large bonnet mirror, brush and comb. Spe- cial value for the early shopper $7.50 Complete sets, featured in thi 52450 v Pay a Little Each Week and Pay Next Year 22X and 7 fire. GORGEOUS 2 [Z The _greatest Y/ N2 n early shopping event, are 9 pieces, including handsome doily, tray and manicure pieces. Three Blue-white DIAMONDS two synthetic BLUE SAP- PHIRES to contrast their flashing That's what you'll say when you J) see this beautiful DINNER RING. Diamond Dinner Ring offer ever made in Washington. Pay Next Year go 77 Give the kind of gifts you yourself like to receive! Gifts worthy of your friendship and affection—GIFTS THAT LAST. They don’t cost any more than the ordi- nary ones. Come to KAY’S and judge for yourself what a few Open a CHARGE ACCOUNT and PAY NEXT YEAR as convenient. Cash—or confidential CREDIT—you get the same prices and same Guarantee. of A wonderful selection of Strap Watches for men. Th venient watch to carry. Elgins, Illinois- Hamiltons and terlings, ¢ Prices Swiss movements. Pay a Little Each America’s most celebrate fabsol! GrA Kay. We positively zuarantee to sell all standard makes of watches, Flein, ), Guaranteed Pearls (Imitation) Beautifully Matched Pearls, in @andsome gift cases. crack. \\\\\ Wil ship and insure to any part of the FREE OF CHARGE No Red Tape — No Collectors—Just Say SN 2 = Guaranteed not to peel, break or Wm. s il il A Fine Gift for Thanksgiving 26 Pieces : N TSRS S A PN TR RGeS SIS 245 ., The Perfect Watch ILLINOIS-STERLING GARETTE and Silver-plated Cigarette Cases, guaranteed quality. Rumanian _commission, and Secretary | Winston of the American commission, ! concerning their $46,000,000 debt, on! cash advances and war supplies. Most of the actual negotiations, it is an- ticipated willi be carried on in sub- committee and a formal meeting of the two commissions called when somethinz of a definite nature has de- veloped for consideration. The Ru- manian delegation is preparing further ata on its country’s capacity to pay. for all negotiations. ASSER:FE BILLION A YEAR, ABNORMAL MINDS’ COST Declaring “abnormal personalities’ cost the United States a billion dol- lars a year, Dr. Arthur MacDonald of the Vetera Bureau, has drawn up a bill to be submitted to Congress, for plishment of a Federal laboratory tudy such cases. The main purpose of the bill, which he said had been widely indorsed by is to study the causes of nity, pauperism, alcohol- ism, defectiveness, degeneracy and other forms of abnormality with a view of lessening them. One general purpose of the labora- tory would be to determine more itely the border line between the,| nd the abnormal. to crime, in IS quarters will do!! ) ; W22 ZA\ f Beautiful e most con- guaranteed range from N7 Week pular watch—the ILLINOIS-STERLING _for ute accuracy. You get a DOUBLE RANTEE—from the factory and $34.50 Pay §1 a Week ot ey, Marmiien Ve nras i in_addition offer you of a most liberal cound: Pay Next Year Szl Rogers & Son, Tableware 26 Pieces Boxed In Beautiful Gift Case S TN S5 [ $14.75 Pay 50c a Week “1847” Rogers Tableware $22.40 1N, Pay 50c A Week 0 PAY NEXT YEAR Monday—Tuesday Wednesday Fresh Shoulders, Lb., 19¢ Smoked Picnics, Lb., 17¢ Pork Chops, o Shoulder Cuts Sirloin Steak, Lb., Porterhouse, Lb., Round Steak, Lb., Pure Lard, Lb., Chuch Roast, Lb., 17c Lb., 25¢ 27c 23c 25¢c 20c 18¢ Geese, Frying Chickens, Lb., 29c Butterine, 3 Lbs., 81 Country Roll Style EGGS DOZEN 43¢ Every One Guaranteed Packed in Carton Large in Size 2 Dozen, 85c Tomatoes, No. 3 Can 3 for 29c 3 for 25¢ Peas, No. 2 Can Stringless Beans, 2 cans, 15¢ HONEY DROP MAINE CORN Can, 15¢ You Can Buy No Finer Quality Cider, ' Gallon, 29c From barrels—if you bring container Coffee, Lb., 35¢ Marcella Peas, 3 for 55¢ Holland Belle Butter, lb., 59¢ Bread, Loaf, 5¢ 16 Ounces of Quality Van Camp’s Soup, 2 for 15¢ Van Camp’s Catsup, Lg., 19¢ SUGAR 03 |10Lbs.,56¢