Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-02-27
STREET RAILWAY CHANGES
Gossip Concerning Alleged Transfer of
Washington ana Great Falls Road
A Possible Consultation With Me-
tr0po'if"n interest" : Speculation
on Union Of Several Lines.

| The newest feature of the current gossip
in regard to street railroads is the alleged
change in the ownership of the Washington
and Great Falls Railroad Company. 1t IS
| believed the purchasers are the same peo-
| pie who have been buying other railroad
properties in this city, and, according to
] the general Interpretation placed upon this
| alleged transaction, the purpose is to make
| use of the clause in the act amending the
act Incorporating the company which was
| approved June 3, 1885, This clause reads
as follows:
| THAT said Washington and Great Falls
| Electric Railway Company, being author
| lied thereto by a vote of the majority OF
| the stockholders of record, may contract
| with any street railway company IN the
| state of Maryland or the District OF Co
| lumbia owning operating a connecting
or intersecting line, for the joint manage
ment, lease or purchase of such line or
| lines and operate the same i'll connection
| and as an extension with it's present line,
and in case of such contract may PROVIDE
! the means necessary by an increase or It's
| capital stock not to exceed the actual con-
| sideration paid or the actual cost OIL the
| necessary construction, complement, equip
| ment and maintenance thereof
Following is clause authorizing the
| company to issue bonds to meet the eX-
penses incurred as contemplated in the
preceding section:
Exceptional Privilege.
similar privilege is enjoyed by the Cap
| ital Traction Company, and the charters
of these two companies are the only ones IN
| the District that confer authority to buy
another road. The relation of this road TO
| that of the others now controlled, or to be
under the control of the same interests,
together with this privilege is believed to
| make the Great Falls road of special value
| at this time. Hence the opinion is express
ed that the consideration paid was nearly
half a million dollars.
The Great Falls is connecting line
| with the Metropolitan road the former
terminating at the union station in George
town, on the same street where the tracks
of the latter road turn in coming back to
the city. No actual physical connection
has ever been made between these two
lines, but the tracks are alongside of each
other and a connection would not be diff
cult to make. In the event that the nego-
tiations now believed to be in progress shall
end in the passing of the control of the
Metropolitan road to the interests above
referred to, then in case the same interests
have acquired or will acquire the ownership
of the Great Falls road, under the provi-
sions of the law relating to the latter
pany, it will be possible for the Great Falls
company to buy the Metropolitan company
and the latter line becoming in this way
a part of the Great Falls, all roads connect
ing or intersecting with the lines of that
road can be acquired and made a part of
the system
In this way it is thought an organic union
can be made of all the roads recently ac-
CURED by the same people, and the process
Oh welding them all into one whole can be
accomplished without Legislative enact
ment, but at the same time in accordance
with the law of Congress.
There have been issued S6S shares of the
capital stock, at "a par value of 500 per
share, which makes the total capital stock,
at the par value figure, $50, 800. In addi-
ton, the bond issue amounts to 100000.
If the consideration mentioned is correct
and nearly half a million has been offered
or paid for this road, then it will be seen
that the price. represents practically the
face value of the stock and bonds. Neither
is listed on the5Washington stock exchange,
so that they have no quoted market value
1t is also stated that the road has never
paid a dividend. 1t is said that Mr. Stilson
| Hutchns owns tfeI entire issue of bonds,
and that he also has recently through a
| series of purchases acquired all the stock
| with the exception of very small block.
! The alleged sale is then practically re-
| garded as a transaction between Mr.. Hutch
| ms and the purchasers.
| The Offer to Purchase.
! According to the general talk that is heard
| in local street railroad circles today, an eff
! fort was made by Mr.. Hutchins to purchase
| the Metropolitan road, the purpose being
| to sell it to the Great Falls road. The
| price said to have been offered for the en-
| tire amount of the stock of the Metropoli-
| tan road was 500 per share, the same fig
ure that it is understood has been offered in
| the alleged pending negotiations between
| the company and the syndicate.
1t was the purpose, SO it is said, of Mr..
Hutchins to put his own road in at half Il
| million of dollars. With the four million
| and half to be paid for the Metropolitan
road. this would make the total expendi-
| ture about five millions of dollars. On this
| basis there was to be a new Capitalization
| of about seven millions of dollars.
| 1t will he from he bov urb;o &C.
| a fair sample of some of the current Cos
| sip on the street today, there are two
theories as to the disposition of the Great
| rails road, and also as to the identity of
the alleged purchasers of the METROPOLITAN
| road. 1t is not claimed with positiv,ness
| that any definite end has yet been reached
| in the negotiations which are said to be
| pending.