National Republican., 1883-11-01
A History Of the Organization and Growth Of
Washington's Second Street Railway.
The Dscouragements and Difficulties
Which Beset Its Earlier Years,
What Conservative and Judicous Management Have
Done for the Road and Its Stockholders,
Legal History OF It's Controversy with the
Capitol and North o Street Line.

tended the inception and completion OF the
Washington and Georgetown street railway
enterprise by outside capitalists, convinced
oven the most skeptical Washingtonians that
o similar project upon some other route could
be made paying investment. Regretting as
they did that the first street railway corpora
tion had been organized SO largely by outside
talent and means, some of our most enter
prisng citizens began to cast about for
route, which should at once provide for i'm
mediate requirements and prospective growth
as the metropolis advanced in size and i'm
portance.
But the new projectors found themselves
environed by difficulties which had not ex-
listed in the first instance. Tho Washington
and Georgetown railway had met an imme-
date public emergency which assured its sue
cess from the beginning Its rails were laid
in the heart of thckly settled section, and
united with iron links those two remote
neutrality-suspicious. and the navy yard.
The citizens of tho former antiquated
birgh, while indignant that the tail of Wash.
iugton horse had been Haunted in their faces
from its pedestal in the circle, were very
willing to come into the city by the late style
of conveyance which was offered by street
cars. Seventh street, also, from the laying of
the first rail. was q paying route, and Four
teenth street was sure to be.
But from the capitol to the treasury depart
ment, via + street, afforded no sure promise
Of remuneration, for some time to come, at
least. The war had not yet ended. The
brilliant genius of southern leaders had not
spent itself, and the pcrmanence of the ma
tional capital was problem not fully solved.
Could the capitalist of 1864 have known
whether the termination of the civil war,
even if successful would dwarf the city by
tho hcgira from it of its new citizens of the
camp, or expand it with fresh element of
growth having high hopes and purposes, he
could have acted with some degree of intelli-
gence. But to all his questionings the sphinx
Of destiny opened not her marble lips. 1t
required downright pluck to build and equip
the Metropolitan street railway, and its pro-
.iectors should be held in highest esteem.
Tho charter awarded the applicants for a
second street railway franchise will be found
at length in revised statutes, chapter 100,
July l, 1864, with amendments; revised stat
utes chapter 20, Jan. 80, 1865, and revised
statutes, chapter SO, March 3, 1865.
The main features are the same in both the
Metz opoitan and Washington and George
town Railroad companies, the chief diverGen-
cies being in size of share capital, the former
having the privilege of 81 ,000,0 900, the latter
$4,000, and the former having personal
liability clause incorporated among its pro-
visions.
The Metropolitan Street Railroad compan6
was organized with the following board of
directors: $. p. Brown, NJ. G. Emery, John
II. Semmes, William b. Todd, A. r. Shepherd,
Lewis Clephane, and J. w. Thompson. S. 2.
Brown was elected president, Lewis Clephaue,
acting secretary, aud NJ. G. Emery, treasurer.
Almost from its commencement the enter
prise met with embarrassments which an
noFed and disheartened its projectors, Their
. main efforts were directed to building the
line from the capitol to Seventeenth street,
at which place the stables were located, just
south of Pennsylvania avenue. Owing to tho
inclement season in which the roadway was
built the cobble pavem ment could not be laid
down. and it became necessary to uso plank
foundation between the tracks to prevent tho
horses sinking in the mud. A large portion
of the rails were laid SO closely together that
no space was allowed for the contraction and
expansion of the metal. Next summers heat
caused them to bulge up from the stringers
and necessitated fresh expense in relaying.
This fact was commented upon by the scien-
tiiic papers of the day.
The original cars were large carriages which
rendered conductor and two horses neces-
sary. Tho road rassed through compara-
lively sparsely settled region and derived its
main patronage during sessions of congress
from members of the two houses and visiting
strangers.
When one considers that an additional
horse and conductor for each of the present
cars of the Metropolitan line would mean
an extra annual expense of from $4,000 to
100000 it is no wonder that the original
stockholders became disgusted, and in many
instances sold their securities for less than
actual cost.
1t was at this crisis that John W. Thomp-
son, the present chief executive of the road,
came to the front Possessed of u remarkably
clear head, indomtable will, and thorough
comprehension of business details. even down
to the cost of horseshoe nail, he took in the
situation at glance. He banished the two
horse cars and substituted the single ones,
which were at that time a great novelty. AT
every point he entered upon policy of re-
trenchment, the good effects of which were
seen at later day. Mr.. Thompson associated
with him, as secretary and general manager
in the active work of building up the re-
sources Of the road, Capt. w. w. Moore, and
these two, in conjunction with their associate
directors, succeeded in placing the Metro.
was not regarded by them as fully assured
until all the various branches of the road haG
been completed and thoroughly equipped.
But this was all accomplished with such
admirable precision and absence of blustei
that q local capitalist, never dreaming of Tho
value Of the property, was glad to dispose o
q large block of his stock at figures which
seemed at that period extravagant. Tht
original share capital of the Metropolitan
road was SlS3,l50, actually paid in, and al
j sue of $4,000 in per cent. bonds. These
latter were redeemed partly from sinking
fund and partly by conversion into STOCK
until oil were retired.
In 1S72'73 the road was extended, which
rendered an increase of capital necessary
Upon the thirtieth of June, 1875 the tota
number of shares issued amounted to 1864
with par value of $69S,200 upon which $3l
per share had been paid or an actual amoun
of $41s920. By section 10 of the charter
however, each stakeholder is liable for debt
of the corporation to the full amount of stool
held by him. In 1881 this capital was still
further increased by an issue of scrip divi
dend lone share in each fifty, which wa
convertible into stock, SO that the total issu
up to date is about 1i,200 shares,
For tho first fourteen years ending July
1878, the gross receipts of the road wer
81 ,32i 341.5 SO, or an annual average of abou
$9i ,595
For tho same period the operating expense
and various disbursements were 81 O62, l45 81
or an annual average of about S75S67; leav
ing net earnings for the first fourteen year
of S262 l9620. Out of this there was paid Il
dividends SlS02S9 interest on bonds, $2o
1861; redemption of bonds, $46,55O; leavin
a surplus Of $6,560,23.
During the first three fiscal years endin
June 80, 1867 no dividends were paid. Afto
that they were as follows:
For year ending June 80, ls6s..........." sl2,li
For year ending June 30, 1869. .........".. l2,2l
For year ending June 30, 1S10............u l2,6t
For year ending June 30. lS7l......".."... l2,6l
For year ending June 30, lST2...,.......... 1911
For ear ending June 80, lS73..,......".... 60
nFa.la lam