The times., 1899-06-14
PAYING THE BALANCE.
The Syndicate to Take Control of
the Consolidated Roads


The street railway and electric light
syndicate yesterday paid the entire bal
ance of the purchase money due for the
Metropolitan and the Columbia railways.
a check for the amount, signed by Fred
eriek c. Stevens, the Washington head of
the syndicate, was paid to President Bell
OF the American Security and Trust Com
pany, which has been the trustee for the
stockholders in the transaction, This
payment virtually completes the deal for
the requirement OF all the consolidated
street railway lines and the two electric
light companies. The syndicate has been
at work on the deal for over a year.
gradually absorbing one company after
another, and now no step remains TO finish
the deal except the cashing of the check
and the surrender of control by the ofT
GERS of the Metropolitan and Columbia
roads: 1t is understood that the check
viii be cashed. and the old stockholders
receive their money this week.
The affairs of the various properties OF
the syndicate viii be managed as has been
stated heretofore by holding company"
known as the Washington Traction and
Electric Company" which was incorpo-
rated last week at Norfolk
Connections between the lines are be-
ing made as rapidly as possible, and will
probably be completed within three
months. The work on the equipment OF
the Belt and Anacostia lines with elec.
trio power has been begun. The subur-
ban lines will be reconstructed almost
completely and contracts have already
been let for this work on the Seventh
Street line to Forest Glen. These i'm
provements will occupy several months
and it will be impssible to run the
suburban cars into the city for some time
owing to the present poor condition of the
suburban tracks.
1t is stated that there will be large
economies in management owing to the
cutting off of superfluous officers. and that
great savings are expected through the
operation of the electric and railway COM
panies in conjunction. The installation of
modern systems on the several lines that
have been operated heretofore by horse
power is also counted on by the syndicate
to greatly augment its revenues
1t is now realized that the syndicate in
tends to free itself from all uneasiness
regarding this problem. at least to the ex-
tent of securing Immediately all it has ex-
pended and good return on its invest
ment, by selling bonds of the holding COM
pany for more than the total cost OF all
the properties. The holding company is TO
issue bonds for s20,O00,0 600 and stock for
sl2,o00.000. The sale of the bonds will,
it is estimated, give to the syndicate all
that it has already invested. pay for the
outstanding bonds of the various compa-
nies. pay for the Improvements being made
on the railroads, and leave reasonable
profit for the syndicate. A small slice of
the new stock will be given TO the brokers
who float the bonds, and there will be other
minor stock outlays. The remainder prac-
tically the entire $4,000 600 of stock, will
be retained by the syndicate.
The syndicate. in a circular to banks
and others who will float the bonds, has
estimated that the gross earnings of the
various companies for the next year Will
De S2,SO0,000 and the operating expenses
S1,150,000. The interest on the portion of
the new bonds now to be issued and the
interest on the outstanding bonds of the
constituent companies will make a total
of fixed charges of SSS7. 460. This estimate
leaves a balance for the stock of s262, ,520,
or about per cent.