Evening star., 1898-10-04
A Majority Holding Acquired by
Those Controlling the Stock.
SIGNIFICANCE OF; THE DEAL
Proposed Equipment Of the Road
With the Underground Electric.
SOME CURRENT GOSSIP

There Is a bit of interesting gossip in
street railroad and financial circles today
and it Is to the effect that large block of
the bonds of the Belt railroad has been
sold to the syndicate owning a controlling
interest in the stock. 1t Is stated that The
purchase included some $35O,0J0 of the
bonds, which is much more than the con-
troll, as the total Issue is 100000. This was
not, however, the actual amount of money
given, as the bonds, while having a par
value of Sl00, are now quoted at As bid and
50 asked.
1t Is not definitely known what was paid
for the bonds, but the best opinion is that
the price was 5S. The general idea is
that this deal indicates that the syndicate
in acquiring this additional interest in the
road proposes to become a purchaser at
the sale of the road, which is to be held
by order of the court some time next
month.
The lexington System.
The road has been in the hands of a re-
ceiver, as is well known, for some time,
and there has been no interest paid on the
bonds for the past eighteen months When
the lexington and the allied roads were
bought some months ago by the syndicate
that is about to equip and operate the sys-
tenn under the name of the City and Sub
urban railroad, the control of the Belt road
was also acquired. 1t was proposed when
application was made to Congress for an
thority to consolidate the lexington and
the allied roads under the name of the City
and Suburban to include also the Belt road
such a provision was actually inserted in
the bill which became a law at the last ses-
SION OF Congress incorporating the City and
SUBURBAN, but owing to certain complica-
tons which arose in connection with the
Belt road, 1t was deemed best to drop all
alluson to that line from the bill and it
became law in that form. The principal
complication was the claim of the empIoyes
Tor money due them and then various
claims for supplies. A majority of the bond
holders took steps to have the road sold
put 1t was found that such sale would not
include the franchise or the right to operate
the road as a corporation
The New Chnrter.
1t was therefore necessary to secure adj
dftional legislation before a sale of the road
could be effected, and a bill to that end was
Passed at the last session of Congress.
Under the provisions of this measure any
corporation operating d street railroad
within the District of Columbia is author
lzed to purchase the property and franchise
of the road and operate it as a part of its
system, or in case the property is pur-
chased by any person or persons they shai,
enjoy all the rights, privileges and fran
chlSes conferred on the Belt road
This law, therefore, permits. the purchase
OF the road by any street railroad CORPORA
ton in the District or by an Individual or
set of individuals. AS the syndicate now
owns a controlling interest in the bonds as
Wen as IN the stock it is the presumption
among some of those who keep posted
about local street railroad matters that it
is the intention of the syndicate to appear
as a bidder when the sale cones off This
however, has been the opinion for some
time past, although the; name of another
local corporation, as well as Il combination
OF INDIVIDUALS, have been mentioned as like
ly TO appear as bidders at the sale
Debts Must BE Paid
The bill requires the payment of the
receiver certificates have already been is
sued In liquidation of this debt. 1t also
stpulates that all Indebtedness for coal,
leed, horSeShoeS and other supplies con-
tracted for by the receiver of the road
must be paid before any permit is issued
to begin the work of equipping the road
with the underground electric system as
the purchasers are required to do.
In the event those now owning the bulk
OF the securities of the road become the
purchaser, then under the law the road
can oe operated as q part of the system of
the city and Suburban railroad or by an
independent company. composed, of course,
or the same persons now in control of the
city and Suburban. 1t is believed that the
latter plan will be pursued and that the
Belt. 1t is estimated that the equipment of
the road with the new motive power will
involve an expenditure Of about three
quarters of a million dollars