Evening star., 1896-10-22

motors with compressed air, the cost OF
which is estimated at from s, 800 % S5,G00:
(c) to pay for the ten compressed cir
motors contracted for by rhe company be-
fore the appointment of said receiver for
the purpose of testing :he efficiency OF
that motor, at cost of probably $4,000,
and (d). in the event the motor is success
full, then to meet the expenses of ccm-
pletng the equipment OF the road, which
would amount to $5O0.000 or s6o0.0O0. These
are the items apparently contemplated by
the receivers report as We understand It
In view of the gravity of the matter
submitted to US. We have en1eavored, by
all the means within our power, to ascer-
tain the real situation, end to give TO the
bondholders our best Judgment as to what,
under the circumstances. shoJid De doue;
and, without going into minute details and
leaving out of view all legal questions
that might be raised. but considering Tie
matter from a purely business Standpoint
and In the light of the best Information
that we have been able 20 procure, we
have to say that We have reached the con-
clusion that the best course to be pur-
sued, under the conditions now existing,
is embraced in the following suggestions:
81. There should be a change in tic re-
ce!vership. Neither the bondh olders ncr tie
stockholders We're represented or had any
voice in respect to the appointment of the
present receiver, and We find that there is
almost; aim II not not quite universal, dissatisfac-
-. Inasmuch as the road appears now
not 10 be paying its operating expenses, II
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 $500
n. In view of the fact that the act OF
Congress requires 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
tr a,a1 hfrlr no
upon, that the ten motors that have been
contracted for are in such state of for
wardness of construction that, in very
short time, possibly within two weeks, one
or mere of them can be placed on the road
snC 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 commercial as Well as mechanical
success. If they are a success, they would
have to be paid for at a cost In the neigh
borhood of 100000. There are no means 10
pay for them, in the event of success, ex-
cept by the issuance of receivers certfh-
Gates; and as rapid transit is essential to
the prosperity of the road, and as Con-
gress has required that this motor shall
be tested and used If successful, ii is ouf
opinion that, from a business standpoint,
it is best to authorize the Issuance of re-
ceiver's certificates to pay for the ten mo-
tors above referred to when IL is ascer-
tained that they are mechanical and
commercial success. OF course, provision
should be made that no certincatoS shall
be issued until this success is demonstrat-
eG
-. We are of opinion that no provision
whatever should now be made for the is
suing of certificates for the further equip
ment de, in excess of that in payment
for the ten motors) of the road, even If the
said motors prove success.ul-that resis-
tance should be made to any order to that
effect, or looking TO that end, at present
at least. IL these motors are successful,
the company should be entirely unembar-
raised by any provision for the issuing of
such certificates, and the affairs OF the
company, and everything pertaining there
to, should be kept in such a position that,
the future prospects of the road i'm
proved, advantage may be taken thereof,
either by issuing new bonds 10 cover those
now existing, and including such further
sums as might be necessary for this fur
| ther equipment or by reorganization or by
any other means that good business policy
may dictate. We do not think that at
| present there should be any recognition of
a purpose hereafter TO issue receivers GER
tificates for the purpose of completing the
equipment. as above indicated.
Looking at this matter frcm a purely
business standpoint il 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
The bondholders will act upon the report
| at a meeting TO be held Wednesday next.