Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-09-26
How the Metropolitan Railroad Com
pany Secured Needed Money.
coHFRoNqEPFITH SERIOUS CONDITIONS
The Bonds, Placed in Baltimore at
a Good Premium.
A FEW BOUGHT HERE

An issue Of first mortgage S per cent
bonds of the Metropolitan Railroad Com
pany OF this city to the amount of 81, $780,
wv was disposed Of In Baltimore yesterday
py the Baltimore Trust and Guarantee
company and the Mercantile Trust and
deposit Company. Subscription books
were opened at the companies offices, and
wnen they were closed at 8 o'clock pm.
II was found that the issue had been over
subscribed 5000 Eight hundred thousand
collars were subscribed to by Baltimore
savings banks and individuals: 100000 by
New York parties, and the remainder were
sold In this city. and other places The
bonds were placed at 10TH and accrued in
terest from August 1 to October Is, when
they VIII be deliverable. By an arrange
ment entered into previous to the opening
VI !ne books. each subscriber will receive
for. e OAo' 'oos'i i'eu
The committee on securities of the Bal
timore stock exchange has recommended
the nsting of 100000 of the first mortgage
per cent bonds of the Metropolitan Com
pany These bonds are numbered from /
70 ~, inclusive. for $1,000 each, and are
part OF the same issue that was disposed
OF yesterday, having been placed by the
same companies some time ago.
Inc ponds were issued by the Metropoli-
o oan company to secure the loan of 81, $780,
mCoernlzlng the system used on the lines
OF the road in this city. The 9th street
9ranch was improved with the Connect un-
foreground electric system with portion of
1t. and by next August the same system
Will extend over the entire road.
disappointed at First.
The loan was secured shortly after Mr..
Samuel l.. Phillips was called to the presi.
dency of the road. When the act passed
Congress requiring the Metropolitan Com
pany to build, equip and have In operation
before August I. 1895, an underground cleo
trio system on the 9th street branch. Mr..
Philips was chosen president, and meas
sary funds to carry out the directions of
congress. Acting upon the suggestion of
prominent official of the government here,
who Is from New York. Mr.. Phillips and
Marshal A. A. Wilson, who Is heavily in
terested in the Metropolitan. went over to
New York city and proposed to a powerful
institution there the ACCESSIBILITY of loaning
the Metropolitan Company $1.S50.ODO at 6
per cent per annum, the loan to be secured
by first mortgage on all the franchises,
lires. rolling stock, real estate and OTHER
property of the company. The officials of
the New York concern seemed to regard
the idea with favor. and it was taken I'M
der consideration. Subsequent indics TONS
were so good for the securing of the loan
on the terms described from the New York
capitalists that the Metropolitan Company
went to work preparing all the plans for
the 9th street road. Bids were invited for
various portions. of the work. and tho
Pennsylvania Steel Company was even in
formed that their figures had been accept
ed Still the New York Institution ad not
given positive reply. After repeated in
Qciries, word was received from New York
that the Institution there had reconsidered
the matter" and could not advance the
amount required.
Conditions Looked Serious.
This was 4 dilemma that was as perplex-
ing as it was unlocked for. The steel COM
pany and other bidders were clamoring to
have the promised contracts with them
closed, and at last President Phillips was
compelled to inform them that he could not
close the contracts, because there was no
money to carry them out If made. 1t was
at this critical moment that Mr. Phillips
went over to Baltimore and called on Pres
ident Davidson of the Be-. timore Trust and
Guarantee Company. He presented the re-
quest of The Metropolitan Company for
loan of 81, $780, 600. When the interest to be
paid was inquired he boldly replied per
cent President Davidson favored the in
vestme mt and called in other capitalists. A
personal examination Of the holdings Of the
company in this city satisfied them of the
safety of the investment and the loan was
made. Two hours after this agreement had
9th street were signed. 1t may be interest
ing to know that the placing of the loan at
5 per cent instead of 6, as originally con-
templated, will result in an ultimate saving
to the Metropolitan Company in interest of
ono