Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-10-09
PLAN CONSOLIDATION
Rumored Intentions of Well-Known
Street Railroad Men.
One GRAND MONOPOLY AIMED At
Inwardness of S. L Phillips Return
to the Traction Company.
A REVIEW OF THE GOSSIP

Business circles continued to discuss to-
day the various phases of the conditions
which are believed to surround the selec-
tion of MIR. Samuel L. Phillips as a member
of the building committee having charge of
the construction and equipment of the
Pennsylvania avenue and 14th street lines
of the Capital Traction Company with the
underground electric system. The opinion
was expressed today by men whose judg-
ment in street railway affairs here is I'M
questioned that the renewal of the rela-
tions of Mr.. Phillips with the Capital Trac-
ton Company was one of the preliminaries
to a plan now under consideration for the
consolidation of the latter company and the
Metropolitan Railroad Company. 1t was
said on very good authority that Director
.Manice. who represents the New York in
terests in the Capital Traction Company.
and Vice President Charles C. Glover had
3 consultation recently with this end in
view, and that the result of it was that
Messrs. Phillips and Glover were brought
together.
This was due, 1t is said, to the alleged
fact that Mr.. Phillips. Immediately after
the power house was destroyed. set to work
10 secure report of the majority Of the
stockholders who favored the introduction
OF underground electricity on the disabled
lines, and that he succeeded in making a
powerful combination, which, it was fear
ed, might open fire on the present manage
ment.
1t is also declared that an examination of
the conditions confronting the Capital Trac-
ton Company shows that a sum approx
mately between s1.I50. 600 and s2,O0O.1OO will
be needed to pay for the contemplated re-
habilitation of the road.
EndenvOrinE to Reach a Plan.
To secure this, therefore, 1t would prob
ably be necessary to issue bonds to the
amount of s2.0O0,0O0. Persons familiar with
such things say that If such an issue is
made the Traction Company would not be
able TO pay dividend for five or six years.
Accordingly, it Is said, that an attempt is
being made to secure an equitable plan of
consolidation between the Capital Traction
that would assure dividends to all the
stockholders of both corporations. The
par value of the stock of the METROPOLITAN
Railroad Company is 80, and the last SELL
ing price quoted was 11S The par value of
the stock of the Capital Traction Company
is 100. and the last selling price quoted was
%. although 1t has been freely declared on
the streets since the fire that sales of it
nave been made at a.
1t is consideration of universal inter-
est among the brokers and other well-in-
formed men in financial life as to how the
desired consolidation of the two companies
rCmor that Mr.. Phillips and Mr.. Glover are
WORKING toward this end Is true. The Met
ropolitan Railroad Company is now on a
prosperous basis. 1t was making large
profits when the disaster occurred which so
seriously affected the caring capacity of the
Capital Traction Company, and owing to
seriously affect the earning capacity of the
poitan have become even greater.
The Men In Control.
The majority interest in the stock of the
Metropolitan Railroad Company Is COM
monty understood to be controlled by Mr..
John Cammack and Mr. Robert D. Weaver
MIR. Weaver personally does not own a very
large number of shares, but he has con-
troll of great many. He does not own
or control any stock of the Capital Trac-
ton Company far as known. He is
large holder of the stock of the Columbia
Railway Company. Mr.. John Cammack
owns very substantial portion of the
stock of the Metropolitan and is a heavy
holder of Columbia 1t is understood that
he was not possessed of Capital Traction
stock until within the last few days, when
1t is said he became the purchaser Of a
block
While Mr.. Weaver could not sell a large
amount of Metropolitan stock that he con-
trcls. he could temporarily dispose of it's
use by proxy If so inclined. Messrs. Nath-
aniel Wilson, William B. Gurley. John Joy
Edson and C. A. Spence, the latter of Bal
tiJnore, who are, like Messrs. Cammack
and Weaver, directors OF the MetrOpoli-
tan Company, do not own any Capital
Traction stock. The other two directors,
Messrs. S. Thomas Brown and A. b. Grun-
well, own, however, a larger quantity of
the Capital Traction stock than they do of
the Metropolitan, and MIR. Phillips himself
who while not Metropolitan director has
been commonly regarded as the chief in
hCence in the management of the COM
p3ny, also possesses more traction stock
than Metropolitan. Therefore, 1t is stated
by those who are considering the possible
consolidation and all its phases, that If
Messrs- Cammack and Weaver join their
voting power in the company with that of
Messrs Phillips, Brown and Grunweil, a
new board of directors could DE chosen and
the consolidation brought about law
purchasing other lines which intersect its
own. and, so far the actual CARRYING
out OF plan Is concerned, Ii it Is matured
there will be no trouble.
tneasiness Over the Probabilities.
Representative citizens wko are not
financially interested In either company
but who have learned of the rumors which
are noted above. express great uneasiness
at the probability of the plan being car
ried into execution. Tney take the ground
tnat the existence of two great rival
street car railway companies In this Dis
trict VIII assure excellent service to the
puDhc. which viii naturally profit by rea-
son OF such rivalry. Any consolidation of
the two companies. however. they think
would lead, perhaps. to a discontinuance Of
some portions of the two systems now in
operation and possibly to the disregard ~
public convenience and comfort thar is