Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-03-27
RAILROAD RUMORS
Metropolitan Line May Be Absorbed
by Capital Traction.
WHAT FINANCIAL G0SSIPERS SAY
A Deal That Many Believe Will
Ultimately Be Made.
P R E S Mt Gle S

For several days past there have been
rumors on the street" and among local
financiers generally of a possible railroad
deal which, II it goes through, will be a
bigger thing than Washington has ever
seen.
At the time of the absorption of the
washington and Georgetown road and the
Chevy Chase road into the Capital Traction
Company President Dunlop was quoted as
saying that the ultimate consummation to
be sought was the purchase of the Metro
politan railroad. 1t now begins to look as
though that scheme might be carried into
erect and before very long, 1t is said that
the Capital Traction people have recently
been putting out feelers to find out how
the proposition would be received by the
Metropolitan Company. 1t is hardly right
to say that definite offer has been made
but there is little doubt that If the PROPOSE
ton were well received 1t would not take
long for the Capital Traction Company to
accept any reasonable chance to secure
control of the rival road.
1t Is by no means certain that the deal
will go through within a few months, but
railroad situation in this city is the opinion
OF some OF the best informed men.
Great Powers of Absorption.
The absorption of the Metropolitan by the
Capital Traction was made possible by the
bill which was introduced into Congress
last winter by Representative NewIands,
who was head and front of the Rock
Creek road and the representative of the
Sharon estate. 1t is said that when the bill
was introduced its real significance was not
caught at the first glance and 1t became a
law March !, 1895, without attracting much
notice. 1t gave the Rock Creek railroad
OH fn c1,oc
Meeting or intersecting road, paying for it
in stock, which could be issued as an in
crease Of the capital stock and without the
expenditure Of 4 single dollar. All that is
needed is for a majority Of the stockholders
of the one road to agree to purchase and
OF the otner to agree to sell, and the deal
goes through The road was also given the
right to change it's name to the Capital
Traction Company. The same act which
enabled the Washington and Georgetown
and the Chevy Chase road to pool their in
terests now makes possible the absorption
Of the Metropolitan. provided only that the
stoe kholders of that road are willing to
sell.
The stock in the Metropolitan road was
quoted yesterday at 49, while Capital
Traction was quoted at ca. 1t is the gen.
eral impression that the first tender to
purchase would include an offer of two
shares Of Traction stock for one Of Met
ropolitan. Some people said today that as
high as 80 might be offered, but this is
thought to be putting 1t at rather q high
figure. as the stock is not dividend payer
at the present time. What 1t may be in
the near future is quite another matter
for the general impression ia that with
Its present management and the introduc-
tion of rapid transit the future of the road
is decidedly bright.
Bankers Making Inquiries.
One Of the leading banking houses in
town yesterday teiegraphed to Its Balti-
n cly yive hf,,, 70 {,fo
what. If any, foundation there was for the
rumor of sale. He was directed to see
the officials of the Mercantile Trust Com
pany. which floated the bonds of the Met
ropolitan and see whether any advances
had been made to them with view to pur-
chase. This morning the word came back
that SO far as could be learned the trust
people knew nothing about it. Neverthe-
less one Of the directors of the Traction
Company Is quoted on the street as hav-
ing said that the proposition is being ser!-
"'slv considered and meets with general
favor.
Inc prevailing impression is that the
traction company would he only too glad to
gather in its chief competitor. 1t Is ad-
mitted that the introduction of the under
ground electric system on the F and 9th
streets lines, with first-rate cars heated by
electricity in winter. will greatly increase
the traffic on those lines, and will probably
get back good deal. If not all, of the
IL ioAAS WHICH, WIS ufSeIleu WHen lDe caDl6
was put in on 7th street and Pennsylvania
avenue. The portions of the CITY from
which the Metropolitan draws a large sec
ton OF its business are growing rapidly,
and when it runs out into the country to
the northwest of the city L: will presume
bly, be in a still better position. The stock
OF the company amounts to $1j0GOO, With
bonds to the extent of s1,TO0,0OO, $500, 900 of
which are in convertible 6s, exchangeable
at the rate of one for two. The par value
of the stock is $50. SO that it is now way
above par, having gone up fifteen points in
the last month.
since a share of stock that would play
any part in the control of the road has
permanently changed hands. The stock
Is largely controlled by two men, and it is
be favorable to the proposed deal
The Capital Traction Company is capi-
talized at $12,OO0.OOO, and pays a dividend
of per cent.
The Transfer Question.
If the deal does go through finally the
public will, for one thing, have the benefit
Of an increased transfer system, for the
act of March 1, 1895, compels the Traction
Company to give its patrons a continuous
ride for one fare.
Frankly, do not think the deal can be
put through just now,' said one of the
best-inforned brokers of this city to a
Star reporter this morning But / do
believe that in time 1t will. 1 know tina
some of tine most influential men in the
Traction Company have dreams of the
day when all the roads in the District shall
be under one management. Personally, 1
think that will be the final outcome, un-
less. in the meantime, public feeling
against trusts and monopolies becomes too
strong and there should be legislation
which would make the combination impos-
sible."
4 Wills Filed.