Evening star., 1896-10-24
Interesting History Of Belt and
lexington Transactions.
PUZZLE FOR TEE OBSERVAHF PUBLIC
Gossip Concerning the Present
Ownership Of the Stock.
AIR MOTORS AND ELECTRICITY

and the lexington and Soldiers Home street
railroad companies is said to be narrowing
down to the simple question whether the
persons now in control of the properties
will retain that advantage, the Wash
il gtonians who are largely interested in
them will become the owners of something
worth more than the paper their securities
are printed on. Both sides are powerful in
financial sense. and both are determined
the one, it is claimed, to secure the prop
critics by increasing the burdens now rest
ing heavily on them to such an extent that
they will become practically worthless and
the other to prevent any such an intention
fiom being successfully carried out. A few
words Of history regarding the roads may
be found interesting at this juncture in
their affairs.
Some Financial History,
The Belt Line is capitalized s50U.Us0 in
shares of a par value of $50 each. OF this
amount only s2223, coo have been paid in, but
there is such a complication of conditions
surrounding the early and late history cf
these securities that it is believed to pe a
question for legal decision whether the
stock can be regarded paid up or not.
The accounts of the company relating to
the stock are in q deplorably mixed condi-
uon, and the certificates issued from time
TO time canceling former issues and includ-
ing still others are puzzle even to an ex-
pert accountant.
No sensible system was followed IN keep
ing these records, and the result was con-
fusion that has become almost chaotic
The original stock, 1t Is said, was assessed
altogether SIS per share, but at intervals
When money was needed, the directors of
the company would authorize the sale of
blocks of stock, after ascerta.nir,g possible
purchasers and the figures hey would be
willing to give. The board would then pass
resolution directing the sale Of so many
81
oasions Of this kind stock was sold at 33
50 and 81.
Mr.. John r. McLeaE's Purchase
When the Philadelphia syndicate, it is
said, indicated a desire to control the Belt
line the majority of the stock was bought
by Corson & Mccartney for aIr. John r
Mclean. MIR. Mclean secured few shares
over 5000, paying for them 55. This was
more than half the stock. 1t was then
transferred to the Provident Life and Trust
Company of Philadelphia. presumably the
representative of Elkins Widener and Do
lan- Although this syndicate was known to
control the Belt and the lexington as
well. there Is no scratch of a pen on any
OF the stock book stubs or certificates is
sued from them to show that Elkins Wide
rer or Dolan, as Individuals or collectively
ever owned share of the stock
Ihe sale of the controlling interest I'm the
lexington was directed by the late E
kGrtz johnson and George White The
lexington stock was in three issues and SO
per cent of it was paid In. Twenty per
cent OF the capital was subject to assess
ment, and the certificates had this condi-
ton engraved on their faces There were
also 5000 shares of value of $500 GOO
which were full paid ard worcestershire
winch were fioated for betterments of tie
road Including the building of the East
Washington line and the reiaying of the
tracks from lexington to Brookland and
for equipments.
When the Philadelphia capitalists secured
the controlling interest they received all
the 5000 paid-up shares and a large ma
Jority Oh the flrst and second issues.
Where the Stock Now Stands
All this stock. of both companies is now
held In the name of the Central Trust Com
pany Of New York, and while the PhHa-
delphia syndicate professes to have dis
posed OF all its interests a year ago to the
party OF Baltimore street railroad capital
lsts, headed by T. Edward Hambletou.
David NJ Newbold and John R. CarsweII
there Is a strong belief that Elkins Widen
er and Dolan still have the upper hand in
the exercise of its influence The annoint
ment of Mr.. W. kesiey Schoepf as The ra
eeeiver Is taken to strongly indicate this
because IL IS a matter of common eossin
~ ~ c, notai rallroad circles that Mr.. Schoepf
is not on good terms with Mr. NewhoIJ
VINO was president of both companies urtii
tne receiver was appointed but who de-
ed clllled 10 serve as receiver when such q
Ine haste with which a rece.yershtn u,os
sought when the liability upon which the
request was based was merely an inconsid
Haole nlii Tor feed. and the equal haste with
Nhfch the receiver asked for authoritv To
issue over S1OO,OOO worth of receivers certi
hcatcs to experiment with air motors and
10 Hidke such certificates a prior lien on the
PIoperues OF the companies are taken in
some quarters to Indicate a determine tion
CT the part of the majority stock hoIdars
10 secure absolute control of the roads nv
making them for the time being at least
worthless to those who hold the minority
interests and to the bondholders as we'll
Another View of the Case.
On the other hand. it is claimed that
Elkins. Wildener and Dolan have no interest
whatever IN the roads. having disposed of
their entire holdings about a year ago to
the gentlemen represented by Mr. IT Ed
ward Hambleton, who already own the Co
lumbia and Maryland road and that the
secuslsies Sc were paid for largely in the bonds
OF the Columbia and Maryland road. and
are now held by the Central Trust Company
OF New York 1t is also declared that Mr.
HamDieton and his associates are in favor
OF trying the experiment with the air mo-
tors. and incline toward the belief that they
Will meet the requirements of rapid transit
II the test is made and 1t proves sue
cessIul IL Is said to be the intention to
reorganize the companies and issue add.-
tonal bonds for the equipment of all lines
with the motors, and that reorganization
would perhaps result in a onsol,dation of
the Belt and lexington into a single sys-
tenn.
That Air Motor Experiment..
In the opinion of many persons yitaJIy
interested In one or the other Of the roads.
however, the impression Is strong that
the trial of an experiment with compressed
air is ridiculous when the commercial al sue
cess of the system has not even been ap-
proxinated- These individuals say that
when the underground electric system has
been proven such a mechanical and ccm-
meroial success in this and other cities
there Is no necessity for tinkeriag with
untried and improved systems, whose
claims to merit. either in pra clical or.
what is mere important, econ omical scpse
have not been established.
They further say that If REORGANIZATION
Is desired 1t can easily be accomplished now
and that 1t would be easier to float bonds
to equip the lines with the underground
trolley than for the purchase OF compressed
air motors: that In any case Congress
would have to give the necessary authority
and that the national legislature would be
more favorable to grant permission to in
crease the Indebtedness of the companies
for definite purpose than for an invest
ment whose outcome might be dubious