Evening star., 1896-10-23
RECEIVERS CERTIFICATES
lexington Bondholders Are Determined to
Prevent Their Issuance.
A Majority Opposes the Recommendn-
tiOns of the Committee In the -
Report Recently Made.

-s.,..,
Public interest in the complicated affairs
of the Belt line and the lexington and Sol
diers' Home Railroad companies continues
to increase, while the discussion Of them
in counting rooms and business offices
grows more animated. The consensus of
the sentiment held regarding these proper
ties Is to the effect that 1t has been the in
tentton of those who secured their control
several years ago to wreck them beyond
redemption by ordinary means. in order
that those engaged in the operation could
eventually find themselves in complete DOS
session OF the valuable franchises owned by
the companies without the expenditure Of
anything more than the persistent energy
required to make them valueless.
rms Is the opinion Of conservative men
as wen as those who are radical in their
solution of the problem can account for the
nee1ect OF the roads since they have pa ssed
INTO the control Of capitalists who are
nnoWn nn 10 nave an unlimited supply of
money he mind them which could have easily
Deen directed toward the modernizing and
improvement of the properties had these
capitalists been SO inclined.
Working Without Co-Operation.
The public is well aware that the bond
holders and the stockholders of the re-
spective companies have recently awaken
ed to realization Of their own affairs, and
are taking measures to protect their large
and substantial interests in them. There
does not, however. seem to be any sort of
cooperation between these bondholders
ana stockholders in approaching the SUBJ
yect SO much to their common interest
d dhey nave so far acted independently of
eacn other. and apparently have been only
seeking their own self-preservation In the
premises.
1t Will be remembered that the bondhold-
ers OF both the lexington and Belt COM
panies recently held meetings to consider
what action should be taken regarding the
request of Receiver w. Kesley Schoepf to
De given authority to issue receivers cer-
uncatss In order to experiment with the
Porter system Of compressed air motors on
the respective lines. Both sets of bond
holders appointed special committees to ex-
anime into the subject and to report there
on TO their respective bodies. The Belt
Line committee recommended the appoint
| ment OF co-receiver with Mr.. Schoepf
The EckinKton Report.
The lexington committee reported in
| ceiver and the appointment of some one
else in his place. and at the same time
recommended that the request for receiv-
er's certificates should be granted by the
court In order that it might be determined
| whether or not the compressed air system
was advisable to be used in the improve
| ment Of the facilities Of the company. The
portion of the report relating to this phase
OF the question was as follows:
'2 Inasmuch as the road appears now
not to be paying its operating expenses. it
would be best to authorize the issuing OF
receivers certificates for the purpose OF
meeting such expenses
''3 Certificates should be authorized to
pay for the plant to which allusion is above
| made to the extent of not exceeding $5.O0O.
-. In view of the fact that the act Of
| Congress requires a compressed-air motor
to be tried, We have made diligent inquiry,
| to such extent as We have been able as to
| the status Of the matter in respect to fur
nishing these motors and our information
| is. and think it may be safely relied
upon that the ten motors that have been
contracted for are in such q state Of for
| wardness of construction that, in a very
| short time, possibly within two weeks, one
| or more Of them can be placed on the road
| and the test begun, and the others could
! be supplied shortly thereafter.
These motors will cost nothing unless
| they are success. and we understand that
to be a commercial as well as a mechanical
success. II they are success. they would
| have TO be paid for at cost In the neigh
borhood of $4,000. There are no means to
cept by the issuance Of receivers certifi-
| Gates; and as rapid transit is essential to
the prosperity of the road, and as Con-
gress has required that this motor shall
/
| opinion that, from a business standpoint
1t is best to authorize the issuance of re-
| ceiver's certificates to pay for the ten mo-
| tors above referred to when 1t is ascer-
| tained that they are q mechanical and
! commercial success. OF course. provision
| should be made that no certificates shall
be issued until this success Is demon
| strated
| In conclusion, the report, which was
signed by Mr. r. A. johnson, as chairman
Mr.. Henry A. Willard and Mr. 8. w. Wood
ward, read as follows:
| I'VE do not think that at present there
| should be any recognition Of purpose
hereafter to issue receivers certificates for
| the purpose of completing the equipment,
as above indicated.
| Looking at this matter from a purely
| business standpoint, 1t seems to us that
the course above suggested would be for
| the best interests of the bondholders. and
| would also be just to the stockholders and
| creditors Of the company"
| Vigorous Attitude of the Majority.
The bonds of the lexington road amount
| to 500, 600; are 'redeemable in 1901 or soon-
er, at the option Of the company. and bear
interest at 6 per cent, payable semi-an-
nually, six months interest being due De-
been paid, heretofore. and the bonds are
quoted in the local market at "a.
| The majority of the holders of these
4
| committee, save only in the particular
| where 1t recommends the appointment OF
another receiver than Mr.. Schoepf 1t can
| be authoritatively stated that the holders
| of over half Of the s2O0OOO worth of bonds
have decided to fight the issuance of re-
ceiver's certificates fer the purpose of ex-
| perimenting with compressed air to the bit
ter end, and that the trustees. which are
| the American Security and Trust Com.
pany and the Washington Loan and Trust
| Company, have been authorized to employ
counsel to contest in the courts any request
of Receiver Schoepf for any such author
| ity. This action, it will be readily seen.
| adds a new phase to the already compli-
| Gated conditions of the case and 1t is prob.
able that the developments of the next day
| or two will add additional features of an
| even more interesting character.
| The lexington bondholders will meet
again next Wednesday to further consider
the matter.
NOT HIS WORK.