Evening star. [volume] (Washington, D.C.) 1854-1972, 1892-12-01
w. AND G. RAILROAD BONDS.
The Stockholders Adopt Resolutions PrOvid-
for Half a Million More.

There a meeting of the stockholders Of
the Washington and Georgetown Railroad Com
pany today at the office of the company, in
Georgetown The meeting was called by the
board OF directors for the purpose of voting
upon the question of iasuing bonds.
The following resolution was offered and
adopted:
"Whereas. The cost to date Of CHANGING the
motive power on all lines of this company from
horses to cable has exceeded the amount of
bonds issued therefor by some $3.50, 900; and
Whereas, the cost of completing the said
work estimated at $3.50, 900 in addition
thereto:
Resolved, that the directors be, and arc here
by, authorized to issue $500. 900 in bonds to
pay for completing the aforesaid work.
Resolved: That the directors shall have au-
thority 20 determine the form of bond to be
issued, to specify the security to be given there
for and to dispose of the said bonds at such
times and in such amounts a. shall be deemed
expedient.
Provided, that no greater rate of interest
than per cent shall be paid. and that no bonds
shall be sold for less than the par value there
Of"
SOME OPPOSITION TO THE PLAN
The resolutions were not adopted without.
opposition. which proved to be stronger in
language than In votes a. only about 100 out
OF the 5000 odd votes cast were against the
resolutions. The point OF the objection urged
against the proposed action was the discretion
AIRY power vested in the board BIZ the resolution
leaving 1t within the power OF the board ito
dispose of said bonds at such times and in such
amounts shall be deemed expedient"
1t was claimed that the board ought to be
! directed to issue the bonds pro rata to the
stockholders. On the other hand it was claimed
that such instruction not necessary al tho
board would probably do as in the case of former
issues Of bonds and make pro rata assignment.
However. the opposition we're of the opinion
that they would feel happier If this point was not
LEFT in doubt. resolution offered as an
amendment directing the issue of the proposed
new bonds to the stockholders, but it was not
adopted.
WHAT THE OPPOSITION SAYS.
Those who opposed the resolution and
are known as the "kickers' believe
or at least some of them assert the
belief that this new issue of $500. 900 worth OF
bonds will never come into the hands of
the stockholders but will be distributed among
those who viii likely be OF service to the bond
! holders in procuring the legislation which is
nesded to make the bonds convertible into stock
or course all this is denied by the representa-
tiyes Of the directory and it is claimed that
I there is reason to believe that different
course will be pursued in placing this issue than
WAS the case when the other issues were placed
The total issue OF bonds 10 meet the expense Of
putting In the cable system ID now 90, 000 900.
and 1t ia said that restriction of the character
proposed was laid on The directors and vet the
interests of the stockholders had not been
neglected The face value Of the bonds "a ! 100
while the market value IL about $50
The market value Of the stocks is about $500
with the stock the value of tine 800 invested
in @he hon do Vrr,ld ka rTyole6