Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-10-29
THE Bedtime SALE
Some Bondholders Not So Anxious to Have
the Courts Order Il.
Interesting Gossip as to the Causes
for Desired Delay-The Attitude of
the Big Railroad Corporations.

Considerable interest is being manifested
in financial circles over the probable dispo-
sition of the Belt Line Railroad Company.
The bondholders of the company recently
went into court and asked that an order
be issued for the sale Of the company's
property because 1t had defaulted in the
payment of the interest on the bonds for
the last six months. The bonds of the
company amount in round numbers to
$5OO,OOO The first mortgage bonds amount
to $4,000, and the second mortgage bonds
to 100000. When the second mortgage
bonds were issued 100000 worth of them
were laid aside to be exchanged for the
$4,000 of first mortgage bonds above men
toned but the holders Of the latter de-
cline to give up their securities and conse-
Quently but $4,000 of the $50O,O0O second
mortgage bonds were put out. The interest
on the bonds for the past six months was
not paid when due, and on this account
the trustees for the bondholders went into
court and asked for an order for the i'm
mediate sale of the property of the COM
pany. Under the law 1t is not believed that
it Is necessary for the bondholders. or those
representing them, to secure an order such
as has been requested from the court but
the fact that the property was already
virtually in the hands of the court and was
being operated by receiver led to the ac-
ton being taken. so that everything might
proceed in order. 1t has transpired within
the last two or three days that certain of
the bondholders, who are said to be inter-
ested either substantially or otherwise in
the Capital Traction Company, are inclined
to favor a poStponement of action on the
request for the order of sale, and it is said
that this desire for delay is inspired by the
fact that the Capital Traction Company is
very anxious to become the owner of the
Belt Line system, but at the present time it
cannot see its way clear to make the pur-
chase. and that it fears that the Metropoli-
tan Railroad Company, which has also been
casting covetouS eyes on the Belt Line sys-
tenn, may come in and purchase it at a
froced sale if such is ordered at this time
by the court.
Another phase of the discussion includes
the possibility that a strong syndicate may
be formed to buy the Belt system in the
interests of the Brightwood Electric Rai!-
way Company. 1t is said that this project
is under serious consideration and that
wealthy capitalists may put up the funds
necessary to buy the Belt Line, spend half
a million or SO in improving its system of
transit, connect it with the Brightwood
Electric Company and run the two systems
as trunk line from the District line to the
water front. The probabilities are that the
question of selling the property at the re-
quest of the bondholders will be settled one
way or another before Tuesday next.
or course it Is well known that the Met
ropolitan Railway Company, as a company,
could not purchase the Belt Line property,
but 1t is said that some Of the capitalists
heavily interested in it are considering the
idea of becoming its owners.