Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-08-19
Genesis and Development Of a Great
Corporation.
PROSPERITY PAST and PRESENT
Stirring Incidents That Attended
Its Wartime Birth.
AN INTERESTING HISTORY


the past history Of the corporation may not
be found uninteresting. AS carly as 1860,
and even before then, citizens of Washing
ton who were possessed Of progressive
ideas began to consider the wisdom of Sc
curing some means to annihilate the mag
nif1cent distances for which the national
capital was famed in more rapid ana
trustworthy manner than by the omnibus
system and the numerous individual public
vehicles which were then the sole de-
pendence of those who wished to get any
where in a hurry and were regardless OF
expense The people here at that time
knew as little Of horse railroads as their
con- emporaries in New York did of the
elevated kind Indeed, there were very few
of what the English called "tramways' in
this country, and a large number or thor
oughly good citizens were convinced when
the subject of introducing such an innova-
ton in transit here was broacned That
Gilbert Vanderwe rken's omnibuses, that
plowed through the mud of the avenue be-
tween the Capitol and Georgetown, were
abunianty able 10 meet all the demands
of residents and visitors alike In the capltal
of the nation for a long time 70 come. 50,
when the matter was first preached In the
city council here, there was something like
storm of indignant protest, and the OBJ
lection was seriously made that the pro-
posed horse cars, on account or their IN
usual appearance and gayly painted eXte-
rior, would frighten the horses attached to
business and private vehicles and thereby
cause continual danger to persons who
might happen to be on the streets occupied
by the cars, and who would be liable to be-
come the victims of runaway horses.
The council was even attacked for send
ing special committees away to examine
horse car systems already operated in
other cities with a view of reporting upon
their availability for Washington, and sew
eral small but none the less emphatic fndig-
nation meetings were held to protest
against the introduction of any such new
tangled notions in this city. The investi-
cation of the subject was still continued,
however, despite all sorts OF opposition,
and at last the war broke out and Wash
ington became crowded beyond all dreams
or expectations. The necessity of some
sort OF cheap and rapid transit system be-
came more apparent than ever and men
were quick TO como forward and meet the
emergency.
Congress Grants II Charter.
1t was during the session of Congress Of
1s61-G2 that a charter was asked for the
Washington and Georgetown Railroad
Company. and May II. 1862, the request
was granted. The act which was approved
on that day was somewhat voluminous
in its directions and provisions. The in
corporators of whom a majority were au-
thorized to carry out the provisions Of the
charter were Elijah Kingman, then the
correspondent of the Baltimore Sun, who
had made the signature of Ion famous;
Franklin Tenney, proprietor of the Ma
tional Hotel; Hallet kilbourn, then chief
clerk of the census office; Judge ]. ].
Coombs, at that time leading patent at
torney; ex-Congressman Charles H. Up
ton of Uptons Hill, Va, and afterwards
consul to Genoa; Henry Addison, mayor
Of Georgetown, and Sayles ]. Bowen, af
terward mayor of Washington.
The charter provided that the company
should have the privilege of laying tracks
and running cars propelled by horses on
Pennsylvania avenue and Sth street east,
and Bridge street in Georgetown from the
junction of the latter thoroughfare with
High street to the navy yard gate on
Sth street east. 1t was also authorized to
build similar line on 7th str Get from the
Boundary to the Potomac river, and to
construct another line on 18th street from
Pennsylvania avenue to the Boundary. 1t
provided that the road from the Capitol to
Georgetown should be completed and in
operation within sixty days after the pass
age of the act; that the portion from the
Capitol to the navy yard should be in OPP
GRAFTON within additional sixty days
thereafter, and that the entire system, in
Guiding both the 7th and 14th street lines,
Should be III complete operation within six
months after the approval of the act.
The Capital Stock Limited.
The incorporators were authorized to
issue capital stock in the sum of not more
than 100000 and not less than 100000,
in shares of $50 each, and that books for
subscription to this stock should be kept
open in some convenient and acceptable
public place in Washington city fer the
purpose of accommodating public SUBJ
scribers 1t was provided tina: twenty-five
per cent of the face value of this stock
should be paid in at the time Of the SUBJ
scription, and that no securities money
should be received by the incorporators,
except such that was marked good and
guaranteed by the president of some repu-
table local bank.
The charter had also provided that first
class and comfortable cars should be placed
upon all the lines; that not more than
cents for each passenger should be charged
from the terminus of one line to that of
itself or any other, and that the schedule
time on the avenue should be not more
than five minutes between cars during the
day, while on 18th and 14th streets they
were required to run at least once every
quarter of an hour. 1t was also provided
that the government should have the right
to use the road at any time 1t so desired
for the use of cars that might be loaded
with freight for the use of the government.
Active Operations Are Begun.
When active operations We're about to be
commenced Mr.. Sayles ]. Bowen and Mayor
Henry Addison relinquished their active
connection with the other incorporators,
who proceeded to carry out the provisions
of the charter. They decided to use the
discretionary power vested in them and to
fix the amount of stock to be offered for
popular subscription at 100000, of which,
as before stated, twenty-five per cent was
to be paid in, $3.50 on each $50 share
Mr.. Hallet Kilbourn was made the treas
urer of the company for the reception of
subscriptions, and five days after the char
ter had been granted two large rooms on
the ground floor of the National Hotel
fronting on 9Th street, We're selected as
Offices They were attractively fitted up
and, assisted by Thompson bank note
detector and several clerks, Mr. Kflbourn
prepared for business. By the terms of
the charter almost any kind of money then
in vogue or in circulation was made &C
ceptable, so that the bank note detector
was very important portion of Mr.. Kill
bourn's stock-selling paraphernalia. The
taking of subscriptions for stock had been
limited by the law to two days, and the
first of these passed off without particular
incident. 100000 worth Of stock was SUBJ
scribed and $4,000 paid in.
A Nevcr-to-Be-FOrgOtt Day.
The next day, however was a memorable
one in the financial history of Washington.
The passage of the bill granting the char
ter through Congress had been secured by
tho ipduaoce of prornipeDt New York ant.