Evening star., 1896-11-16
SEVERE CHARGES
tcon,ipued from First Page.>

VI NdTCu' 4Sst8S duOislOnut OIL
Donds were charged to the account of one
Richard +. BoWer as representing Eikins
and Widener, which account was credited
by the transfer of the account of Elkins
ana Wldener inNthe amount of S56. .4Z2B7,
and from the transfer of the account of
Heward Munnikhuysen In the amount of
81, ,295.30.
1t is declared that the s:s2. 4O.36 of these
accounts as so transferred, being for mon
eys advanced defendant railway company,
and interest credited said account SO trans
1erred from the 30th day of June. 1S!E1, to
February II, 1894, when the first charge of
said bonds, amounting to- $40 was
charged to the account Of Richard F.
Bower as representing Elkins and Widener.
Mr.. Patterson's affidavit also declares that
prior to 1892 the. road was operated at
profit, but that since that time it has
been operated with a large annual loss,
stated by the accountant as follows: Aver
age monthly loss, April 30. 1882. to Decem-
Der 81, 1883. 1,675 50: average monthly loss
during the year. 1894, $l,S22.G2; average
monthly loss during the year 1875, 81. .G':
average loss eight and two-thirds months OF
the present year up to September 70. 1896.
$4,725.27
Mixed Companies.
The affidavit of Accountant Davis states
that the capital stock Of the railway COM
pany consisted of 10000 shares. of the par
value of $50 per. share, on winch, there has
been paid $22.972. The answer AYERS that
E1kins, Widener and Dolan transferred
their entire holding Of 5,O0S shares in Oc-
tober. 1893, to the Central Trust Company
OF New York, but that 1t will clearly appear
from facts which have come to the knowl-
edge of, the American Security and Trust
Company since the filing of the bill in the
suit that the actual interest therein of the
said Widener, Elkins and Dolal has con-
dnued. 1t Is then recited that Elkins.
Widener and Dolan. in 1892, became inter-
ested in promoting the construction Of an
electric railroad line to connect baltimore
and Washington, and TO that end .ertan
companies We're Incorporated. The Balu-
more and CatonsviIle Construction Com
pany was incorr Grated for the purpose of
constructing, building and equ:png lines
OF railways, and on June ~ lS'l, entered
into a contract with the Columbia ana
Maryland railway, whereby on receiving
from the said railway SO,DDO full-pad
shares-the authorized issue-of the capital
stock OF said railway of the par value Of
IN per"ShHre, and amounting to S4.Np,0b.
and also s.. ,.:OUUGO of the authorized issue
or $60n,OU0 of bonds of said railway the
said construction company agreed to fully
build and equip continuous doubie-track
iaiiWsy from Saratoga and Howard streets
in Baltimore TO connect with the tracks of
the Belt Railway Company and Of the
lexington and Soldiers Homa Railroad
Company In Washington" and to acquire
all necessary rights of way, construct all
power houses, install all necessary ma
tne Iuli operation OF the road The con-
struction company fully agreed to equip
In all respects for operation by electricity
or compressed air or other motive power
the lines OF the Belt and the lexington and
Soldiers Homo Railroad Company The
construction heompany further agreed to
transfer and ito make over to the Columbia
ana Maryland railway a number of stocks
DonuS SecurlleS and properties, including
1o.6s5 shares of The capital stock of the
Eckington and Soldiers Home Railroad
Company. 5.uf8 shares of the capital stock
OF 81 the defendant Belt Railway Company of
the CITY or Washington, and the majority
ated. ~
The answer theT. declares that if is in
formed and believed that the construc ton
company did so secure the transfer of the
shares of the Solniers' Home and Ecking-
ton and the Belt Railway compa MES owned
fy Elkins. Widener and Doian, who re-
ceived for then bonds of the Columbia and
Maryiand railway amounting to from sla.-
4D to @lSeT. and which bonds. or large
portion of them, are still held by the said
Elkins. Widener and Dolsh.
The answer further AYERS that at the
time of the purchase it became matter of
general community knowledge in Washing
ton that the purchase had been made. as
well that of the lexington and Soldiers
Home Railroad Company. for the purpose
of equippiBg both lines with the electric
trolley system of propulsion. and declares
that after obtaining the control of the, said
Belt Company, Elkins. Widener and Doian
SO conducted its operations and manage
meat by ceasing to operate portions of the
line, by irreguary operating other por-
tons thereof, by arbitrarily dividing the
railway line chartered and constructed
and by charging two fares for transporta-
ton where one fare had heretofore been
charged as to canse friction with the public
and large loss of patronage and revenue
The answer continues that the act incor-
poratirg the Belt Railroad Company makes
each stockholder individually liable for the
debts and liabilities of the cOmpany in an
amount equal to the amount of stock held
by such stockholders, and that it appears
that the stock purchased by Elkins. Widen
er and Dolan never appeared upon the
books OF the company in their names but
was transferred to the Baltimore and Ca
louisville Construction Company, which has
become bankrupt and is now in a receiy-
ers hands. and that said stock now stands
In the nlmes of the Central Trust COMPANY
of New York, which holds it to secure tha
bonds of the Columbia and MARYLAND rail-
way, and the defendant is informed. and
peneVes. and charges that all these acts
and things were done in order to eyade the
liability! of the stockholders of the ReIt
Railway Company as imposed by its char
ter. and to tho manifest injury of such
raliway property 70 The extent of the hold
ing of said stock therein, as Originate nur-
chased by the said WidsccE, Elk;ns and
-Dolan." anu
Pretty Serious Charges.
IT Is further averred that in February
and March of 1894 Elkins, wtdener and
Dolan. or some of them, received ReIt
bonds IN about the sum OF 10000. ostens;-
bly, in satisfaction of certain prior ad
vances made by them to the ccompaov
which sums could not have been SO ad-
vanced for any of the purposes of original
construction which would lawfully a;,fhor
lie the issuance or delivery of bombs to
Elk1fIs, Widener or Dolan or any of them in
payment or satisfaction thereof 'cf's7
Contemplated the Present Conditions.
1t is further declared that it is now
manifest from the proceedings In the cause
since the filing of the complaint, and par
'acularly from the report of the receiver
made in pursuance OF the order of the
court on October p, 1885, and the pro-
posals filed with said report that certain of
the averments made in the bill of Complaint
as constituting grounds for the appoint
ment of receiver and for the granting tn
the receiver the authority asked for in the
bill of complaint we're and are wholly incorz
rect and without fotindation and factMtbat
Is Is to say, thE proiess of equipping said
not been theretofoTe commenced and had had
rot at the time ths,, bill of Complaint was
hled progressed to:a point where the rars
We're nearly ready to be put in oner,tion
and that the, t,H. X. Porter Comnanv ons ~
flttSburg had not then and has ~ 80, ~