Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-10-05
CAPITAL TRACTION PLANS
Rapid Progress Being Made Toward Com
mencing Active Work.
Shrewd Financial Policy to BE Car
ried Out in Raising the Money
for the New System.

The important prelimiraries recessary to
the practical beginning of the work of
placing the underground electric system on
the Pennsylvania avenue and 18th street
lines of the Capital Traction Company arc
being rapidly completed, and there is every
prospect that progress will be so far ad-
vanced within the next five or six days
that formal contracts can be entered into
for the great undertaking. The amount of
money which 1t will be necessary for the
company to spend in improving and at the
same time undermining its road to a greater
extent than ever will reach. it is believed,
million dollars. This INNER Sc prospect
I've expenditure has naturally attracted
the attention of all the firms, corporations
ana individuals who are engaged in electri-
ca. and mechanical construc ton, and 1t is
expected that the competition will cause
bids to be cut to close figures
1t can be stated in connection with the
new undertaking that while no present
Grange is contemplated en- It'll street. where
TIE track irons have been welded so as to
make two continuous rails on each track
from terminus to terminus, and where the
laGk OF curves assures long life to the
cs.oie, arrangements will be made SO tina
the caDle system can be changed to the
vi foreground ELECTRIC at short notice
Speculation IS rife over the procedure r.
De followed by the company in securine
the FUNDS necessary to meet the eynense
OF rehabilitating the lines. In some tin.n-
clai: quarters the opinion has been express
eu mat requisite means could and proh-
apiv would De secured by using the $3.50 ON
VI insurance carried on the power house
ana machinery and the proceeds of a sale
OF the power house site, which is placed at
valuation Of from 100000 to sI5AOn
mere Is no probability of this sort how
ever The sale of the site would take too
mucn time to make such course desjr-
ipie. II is almost certain on the other
iaho that the company will provide for a
popo issue amounting to sufficient to meet
me expenses of equipping the lines. These
PONDS VIII bear interest, it Is confidently be-
~ s,e Ve at o per cent, and will amount to
Si,op'oV they will contain a clause per-
uniting their redemption after a certain
limited period, but will otherwise run nroh-
years. wv Aoi I'LL y
. Ihese bonds will not be sold by the trac
tion company. They will be held in its
possessioh and used as collateral for secur-
, ,ne Loans oi tne money necessary to do the
work on the road. Owing to the fact that
the ponds will constitute a first mortgage
On the capital Traction Company it is he
HeVeu py hnanciers of conservative udp-
Hent tnat money can be borrowed on them
at rates of or 81 per cent interest a yegr.
ms intention. in the opinion of many.
SHOWS that the traction COMPANY directors
possess shrewd financial wisdom as we'll a
enterprise and determination The destruc-
tlon OF the power house and the accomnany-
ing stoppage OF rapid transit over the i'm
portant lines of the company caused n
number OF stockholders to seek purcha sers
Tor their holdings. The singular condition
was tnereupon presented of former stock
holders of the w. and c. r. r. who had
disposed of their interests several wears 90
seeking to renew their connection as stock
holders.