Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-08-21
Consideration Unnecessary.

Consideration Unnecessary.
THE Washington and Great Falls Elec-
trio Railway Company has not yet exe--
cised the powers conferred by said act, and
the consideration of the sections of the law
quoted is therefore unnecessary at the
present time. 1t is apparent, however that
even If the consolidation Of the various
roads mentioned in said act is effected, IN
view of the express reservation in refer
ence to rates of fare quoted. the situation
would not be changed in any way.
1t is suggested in the papers herewith
and seems to be within the scope of this
reference, that the various roads, including
the Metropolitan and BrightWood Railroad
Companies, have already been consolidated
and are in legal contemplation. If not in
fact. single corporation, owning a single
road with various branches This CLAIM
makes 1t proper and necessary to state
briefly the actual condition of affairs now
existing
Several gentlement purchased the con-
trolling interest of the stock and bonds in
some and all of the stock and bonds of
ether Of the local street railroads, among
others, of the Metropolitan Railroad Com
pany and the Brightwood Railway Com
pany. These gentlemen, for the purpose ne
convenience, organized the Washington
Traction and Electric Company, a corpora
ton under the laws of the state of Virginia.
with very broad powers, among others.
with power to purchase bonds and stock
of other corporations, and to issue in ex-
or bonds or other obligations The pur-
chasers of the stock and bonds of the local
companies transferred the same to the
Washington Traction and Electric Com
pany, as / am informed. In considera ton
of certain stock and bonds of said Wash
ngton Traction and Electric Company.
The Washington Traction and Electric
Company In order TO secure an authorized
Issue of twenty millions of bonds trans
ferred the various shares of stock and
bonds of the several local corporations ac-
quired as above stated to a trust COM
pany by way of pledge, reserving to the
Washington Traction and Electric Company
the right to vote the stock.
Not Single Corporation
while therefore, it appears that single
corporation has become owner of a major
ty Of the stock and bonds in some of the
local companies, and all of the stock and
bonds in others. subject. however to a
mortgage or trust, securing an authorized
issue Of twenty millions of bonds it does
not follow that such corpora lions have be-
come single corporation, and all the roads
a single road with various branches At
the present time each and every one of the
corporations referred to is in law as much
an independent corporation, possessing all
rights conferred by law, as If the stock and
bonds OF Such corporations We're held by
the original purchasers as individuals in
stead of by the company organized to hold
the same. The Washington Traction and
Electric Company is nothing more nor less
than what is popularity known as a holding
company, holding the stock and bonds of
the local companies basis for the issue
of stock and bonds, without the power If
IL so desired TO effect a merge or con-
Sc}ilatiol OF he local street railroad COM
panes.
Il am therefore of opinion that passen-