Evening star., 1896-10-21
THE RAILROAD WAR
Coming Contest Over the Belt and
lexington Companies.
AGAINST TIE RECEIVER
Recital Of the Way in Which Two
Great Corporations Were Injured.
WILL THEY BE WRECKED?

settle the important question whether the
corporations known as the Belt Line Rail-
road Company and the lexington and Sol
dlers' Home Railroad Company shall be
wrecked beyond hope of rehabilitation or
not. Some of those interested believe that
the attempt to saddle new burdens upon
the two companies in the shape of re-
ceiver's certificates, which Mr. w. Kesley
Scnoepf, the receiver for the two roads,
has asked of the courts the authority to
issue, will mean. If successful, the complete
ruin Of the properties so far as their value
as investments to those who furnished the
money to build them Is concerned. In his
request for this authority. which will he
acted upon by Judge Cox, October %, Re
ceiver Schoepf stated that the money to be
raised by their means would be devoted to
introducing a system of compressed air
motors on the two roads.
Not Even n Mechanical Success.
1t is claimed that the air motor by which
1t Is proposed to attempt to solve the
theory of rapid transit on the two street
car lines In question is simply an expert
ment, and a crude one at that This par
tcular air motor, 1t is asserted, has not
yet been proven even a mechanical sue
cess, and In meeting the problem where
street railroads are concerned the COM
mercial success of any innovation must be
even more thoroughly established than its
mechanical power to meet reouirements
1t must be determined beyond all question
OF doubt whether it will cost more to haul
a passenger than the road receives from
that passenger for the service it renders
Rim. 1, is also a well-known fact that the
raiiroad companies of today equipped with
modern mechanical devices are compelle1
TO pay so much more relatively for the
Carrying of passengers that the Increased
travel brought about by rapid transit does
not more than compensate for the increased
expenses in the way of operating the lines
and the interest charges on the large sums
OF money borrowed to make :ne necessary
changes from horse power to an improved
system.
Consequently 1t is held that Mr.. Schoepf's s
request Is merely intended to raise money
and further embarrass the companies in a
financial way for the sole purpose OF ex-
perlmenting with an experiment.
Certificates as n Prior Lien.
1t is a part of the scheme to issue re-
ceiver's certificates to make these securities
a preferred lien on the properties under
consideration, thus securing to their hold
ers the right of their redemption before all
other claims against the companies. no
matter what their nature may be- In such
a case, if the desired authority is granted.
the receivers certificates would be payable
even before the bonds upon which the
money was secured to carry on the original
construction of the roads, and the hold
ers OF the latter securities propose to make
a bitter and determined fight against this
threatened invasion of their undisputed
rights. Many parties interested in the mat
ter do not hesitate to declare that the pres
ent request for the authority to issue 1e-
ceivers certificates would, If granted,
merely be the commencement of a sys-
n Cir1i1o
When the air motors would prove a failure,
they say, there would be nothing to prevent
the receiver from asking for additional au-
thority to try other experiments with other
experiments, and that there would be no
end to the financial burden which would
thus be piled up on the companies.
Some of the persons who are speculating
over the present condition of Belt and Eek
ington affairs are also inclined to the belief
that If the authority to issue certificates Is
given to Mr.. Schoepf and such securities
are made the first liens on the properties
that they would be quickly taken up as an
investment by the capitalists who now own
majority Of the stock of both companies,
in order that their hold upon them might be
tightened and strengthened So the bond
holders OF the two roads will contest .he
attempt to increase the debt Of the COM
panes in the manner indicated. The bond
holders in their relation to the companies
and the property controlled by them occupy
the same position as the owner of a mort
gage on a house. The trusts which they
hold as securities cover the properties of
the respective lines just as a mortgage
covers a house, and they are opposed to
allowing any other lien to interpose be-
tween their original claim and the mort
gagged property. :.
Persistent Mismnna9ement.
The value of the properties, If properly
managed, and sensibly modernized, would
be enormous, and there are some who be-
lieve that the persistence with which
those who have been operating the COM
panies for the past three or four. years
have clung TO obsolete methods Of transit,
has been inspired by the intention Of re-
ducing the price of the securities of the
could pc secured for song. When the
Belt and lexington roads passed into the
hands of Messrs. Elkins, Widener and
Dolan, the great Philadelphia street rail-
road syndicate, it was the intention to
equip the lines with the overhead trolley
system. Firm in their belief that the in
fuence they had welded with such effect
in other communities would be as potent
in the District of Columbia, they secured
the control of the two systems and pro-
ceeded to work toward the Accomplishment
of their purpose. But there was an intelli-
gent and determined opposition to the
consummation of this design. and to their
astonlshment Messrs. Elkins, Widener and
Dolan were prevented from gridironing the
capital of the nation with their dangerous
and ugly contrivances.
The Public Made to Suffer.
From the time that they realized their
inability to carry out their first conception
the policy followed in the management OF
the roads seemingly became opposed to ev-
cry interest OF those who patronized them.
1t was a fragrant case of 1.-The public be
d-d," and at the same time there was 1t
Is asserted, inexcusable extravaganza in
the conduct of their affairs. Offices were
established in an expensive suite Of apart
ments in one Of the leading Office buildings
down town, and a clerk was placed, ap-
parently, in charge of every detail.
When the other and competing lines in.
dicated the purpose of undermining theil
roads, the Belt and lexington companies
gave no consideration to rapid transit, but
rather contracted the accommodations thai
they already had. The Belt Line cars
which formerly ran in a steady trip on the
tracks which encircle a large portion OF
the interior portion of the city, were taker
out of this service and the road broker
into series of fragments in order that the
patrons. apparently, might be subjected te
the greatest trouble possible.
Competition Adds to tho Wreck.
A little over a year ago, or to be more
explicit. in August, 1895, the metropolitan
Railroad Company inaugurated the under.
ground electric rapid transit system on it.
9TH street branch, which paralleled the lltt
limo Of tho Rolf o1opr