The times., 1899-03-01
THE METROPOLITAN
RAILWAY deal
The Syndicate Will Also Abb
sOrb the Columbia Line.
Many Stockholders Now Demanding
$3.50 Per Share.
The Rumored Negotiations for the
Sale of the Great Falls
system Denied.

The Metropolitan and the Columbia
Street railways will be the property of the
great Stevens Crosby syndicate within
very short time, beyond any reasonable
doubt The negotiations have. in fact, ad-
vanced so far that il may be announced
positively that an agreement has been
reached as TO the Metropolitan road. The
price TO be paid for the Columbia road has
not been settled Also IL may be stated
that no papers have been signed in the
Metropolitan sale and no money paid. For
this reason the assertion made in a Wash
ington paper yesterday that the deal for
the transfer of the roads has been COM
pleted is not true. The facts as to the
deal are in every way as heretofore stated
in The Times
II il believed that some days may elapse
before the actual transfer Of the railroads
TO Messrs. Stevens and Crosby and their
colleagues is made. Mr.. Stevens is now
in New York endeavoring to secure the
several million dollars that will be re-
quired TO buy the roads. II is not doubted,
however, that he VIII be able to raise the
money. Another factor that may delay the
contamination OF the transfer somewhat is
the price to be paid for the Columbia line.
II is understood that the holders of the
majority stock of the line are holding out
for $50 share, and that the syndicate, up
10 this time, is unwilling to pay this price.
The facts OF the deal up TO the present
time are briefly as follows: Messrs. Stevens
and Crosby, of the City and Suburban syn
dicate, representing New York capital, not
as yet identified, desire to own the two
roads mentioned. the only street railroads
In the District not now owned by them
except the Capital Traction and the Wash
ington and Great Falls. They have agreed
with majority Of the stockholders of the
Metropolitan road to pay for the entire
capital stock, or as much as can be OBJ
tained over a majority, 1925 share. They
wish TO obtain the entire issue Of stock,
and a very large part of it, considerably
more than a majority, has already been
pledged to them.
IL is not to be doubted that in pur-
chasing the Metropolitan road al $225 a
share the intention IL to increase the
capital stock. or in some other way give
to the new holders a bonus to make 1t
more valuable. The par value OF Metro
politan stock is $50, on which an annual
dividend Of s. is paid. or 10 per cent.
Al s225 q share the stock thus pays only
q little over per cent on the investment,
despite the tremendous earnings OF the
road. II is in this fact that the great
competition for the stock on the Wash
ington and Baltimore stock exchanges is
explained. Present holders Of the stock
are BUYING more In order that they may
be in a better position to insist on receiving
their share of this melon" II is evident
that they believe that with considerable
holdings they can force the syndicate 10
make them positive guarantees by refusing
10 sell otherwise
The Metropolitan stock yesterday sold in
Washington for 225 and 22G. Many of the
orders TO buy came from Baltimore. The
prices paid in Baltimore were even larger
than this. II viii be seen that even more
than the syndicate price was paid. The
same heavy bidding for Columbia stock
was made yesterday and the price was run
up 20 SIPS share, at which figure fifty
shares were sold Apparently the reason
for this outside desire for Columbia stock
was the same.
The magnitude and importance of this
street railway deal can hardly be over
estimated II is safe to say that no larger
transaction ever occurred in Washington
and II is certain that no such combina-
tion of railroads and other corporations
as the syndicate will own was ever dream
ed OF before. The price TO be paid for
Metropolitan stock will make the cost
OF the road. If the entire stock Is Sc
cured, about si.5o0.000 The Columbia
road will cost, II $50 share is paid, as
seems likely, H,2oo.oo0. These roads, with