Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-11-05
It is Believed That It VIII Be Sold
ats Auction.
PROBABLE ACTION OF BONDH0LDERS
Some Of thee Current Gossip in
WeII-Informed Circles.
TALK OF sYNDICATEs

The proceedings in the court yesterday,
when the receiver of the Belt Railway
Company made answer~to the petition Of
the trustees of the bondholders, asking
that the road be sold. were followed with
good deal of interest by those who are
concerned in this particular road, as well
as In other street railroads in the city. AS
was stated in the report in yesterdays
Star. Judge Cox decided to have the entire
case heard next Thursday. 1t seems to be
the opinion Of those who have given the
situation Of the Belt railroad some consid-
Grafton that the answer of the receiver,
which was made yesterday. indicated that
the present owners of the controlling inter-
est in the stock of the road were willing
that the road should be sold.
When the proceedings were first begun
there was some question as to whether or
not 1t was the intention Of the Wfdener-
Eikins syndicate. which is supposed to own
the controlling interest in the stock, to al
low tie road to be sold. and It was said in
some quarters that there had been a changS
In the ownership of this property, and that
PROBABLY an effort would be made to pay
on the accrued interest and thus prevent
she property from coming under the auc-
tioneer's hammer
Willing to Let Go.
1t is row believed, however that the syn
dicate has no intention of sending any more
money after what they have already in
vested in this road, and it is said that some
time ago they offered to sell at the prevail
ing market rate, which was much below
the par value Of the stock, their entire
holdings, which, of course, represents a
controlling interest in the road.
1t seems to be the impression in well-in-
formed circles that the syndicate is not
only willing but anxious TO ge. rid of this
property, and 1t is therefore believed that
the result OF the present proceedings in the
court will be that the road will be put up
for sale to the highest bidder.
Assuming then, that the road Is to be sold
at public sale, there is good deal of Cos
sip as to the probable outcome of such
sale 1t Is, of course. believed that as SOON
as the court orders the sale of the property
a meeting of the bondholders will be called
In order to determine whether the bond
holders shall have representative at the
sale and whether any bid shall be author
iZed and how much. There is no doubt that
the first question will be readily answered
in the affirmative, but as to the price at
which the bondhelders will let the road go
rather than take it themselves there is UNI
certainty. = 1'
Value of the Road.
Some are of the opinion that the bond
holders will be willing to take so cents on
the dollar. while representative Of the
bondholders said today that probably bid
the debt for which the road is to be sold.
namely, the present issue of bonds, amounts
to half million dollars, II is seen that the
value of the road. according to current gos-
sip. ranges from $25o.000 to 100000.
There has 8. been considerable talk about
the formation Of syndicates to buy this
road. but nothing definite seems to be
known about such movements. 1t is ru-
mored that there Is syndicate, composed
of local capitalists and of those who are
w wi
railways. which has in view the purchase
of the property, provided it can be obtained
at a moderate figure. cr
1t is estimated that the entire Belt Line
can be equipped with the underground cleo
trio system similar to that which is in
operation on the Metropolitan road at an
expenditure within s1.000,0OO. If these cal
culationS are correct the entire road with a
rapid-transit system would then represent
an outlay which 1t would not be beyond the
business of the road to render profitable
investment.
Some Current Rumors.
1t is also said in this connection that
several of the large Belt bondholders are
also interested in the Metropolitan and in
the Capital Traction railroads. and it is ru-
mored that combination might be effected
which would result in the transfer of the
ownership of the Belt road to them, so
that the road reconstructed would be oper-
ated in their interests, If not directly by
one or other Of the two street railroad cor
pOrations.
1t is, Of course, not known what will be
the outcome of the present proceedings, but
it is believed that the Belt road under a
new management, as it seems now bound
to have, will be operated so as to serve to
a greater degree the interest of the public
and of the important section of the CITY
through which it passes than is now the
case. 1t is also believed that the control of
the road in the future will be in the hands
of local men, although. of course, it is pos
sible that some outside capital may be Sc
stalling on this line modern rapid transit
system.