Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-05-18
FOB CONSOLIDATION
Hearing on New Local Street Rail-
way, Bill,
CITIZENS FAVOR ZEE MEASURE
Favorable Report Decided on by
the House Committee.
MAY COME UP MONDAY
MAY COME UP MONDAY

The House District committee, at a spe-
cial meeting today, gave a hearing on the
new bill for the consolidation Of certain
street railway lines of the. city. The bill
Oh. r. 1850 was introduced in the House
late yesterday afternoon by Mr.. Alien of
Maine.
The bill authorizes the consolidation of
all the roads now operated by the Wash
ington Traction and Electric Company.
This is to be done by contracts entered into
by the respective boards of directors Of the
roads. but no contracts shall be made with
out the written consent of the holders Of at
least three-fourths of the stock.
The Washington and Great Falls Railway
Company is made the parent company in
the proposed consolidation. The contracts
having been made. it is provided that pay
ments for the properties acquired may be
made by the issuing by the parent company
of obligations-stocks or bonds-"not ex-
ceeding the amounts Of the actual consid-
Grafton paid or payable for the stock so &C
quired, and may also issue further amounts
of its stock or bonds. or other obliga lions.
not exceeding the amounts Of the actual
consideration paid, or to be paid. for any
equipment or extensions of any such road
or route or for electric power therefor
Existing Liabilities Not Affected.
1t Is provided that the existing liabilities
Of the selling corporation and the rights Of
its creditors shall not be affected by any
changes which may take place under this
act. The rights Of the minority stockhold-
ers are guarded at some length. and pro-
vision Is made that II after sufficient period
Of time has elapsed the minority stockhold-
ers have not agreed to the action of the
majority the majority may institute pro-
ceedings in court for the appralsement of
the shares of dissenting stockholders The
Supreme Court of the District of Column
bia is charged with the appointment Of three
appraisers. and the expenses Of the APP
praisement are to be assessed against the
railroad.
No changes In the rates of fare are made
nor In the transfer system. All the statu-
tory obligations of the selling roads attach
to the parent company except as modified
or repealed expressly by this act. The
purchasing company may hold stock in any
company selling electric power to 1t, and
may exchange stock and securities and
guarantee them, but cannot receive a trans
fer of the property or franchises.
The companies authorized to consolidate
are the following: The Anacostta and Po-
tomac River Railroad Company, the Bright
wood Railway Company, the Capital Rail
way Company, the City and Suburban Rail-
way Company. the Columbia Railway Com
pany, the Georgetown and Tenleytown Rail
way Company, the Metropolitan Railroad
Company, the Washington and Great Falls
Electric Railway Company, the Washing
Washington, Woodside and Forest Glen
Railway and Power Company and the
Washington and Glen Echo Railroad Com
pany.
Present Mt the Hearing.
There were present at the hearing today
President Truesdell of the Washington
Traction and Electric Company, Mr. Jere
Wilson, Mr.. Geo. w. Young Of New York,
Mr. Joseph Auerbach of New York, Mr.. A.
A. Wilson, Mr.. w. H. Moses, Mr.. NJ. NJ.
Parker Mr.. E. J. Stellwagen, Mr.. H B.
Davidson, Mr.. Joseph Willard Mr.. s. w.
York.
Mr. Geo. w Young addressed the COM
mittee He said he was president of the
United States Mortgage and Trust Com
pany of New York city. He did not come,
he said to make formal presentation OF
the case, but to answer questions.
He said the practical situation was that
there were thirteen separate corporations
here, of which his company owns practi-
cally all the stock. 1t was desired to facili-
tate business by combining the roads. This
would do away with the necessity for keep
ing thirteen sets of books The trackage
accounts, the transfer accounts and other
business arrangements make very com
picated system of accounts under the pres
ent plan. Every time car of one line runs
over the tracks of another line 1t requires
an accounting to be made.
No Consolidation with Capital Trnc-
ton Company.
He said it was not the purpose Of the bill
to permit consolidation with the Capital
Traction Company.
"In fact" suggested Mr.. Mercer, you
have no such intention?'
1--WE have no idea Of It," replied MIR.
Young.
Mr. Cowherd called attention to para
graph in the bill which seemed, he thought,
to grant the right Of practical consolidation
with bn nit al Traction ('OnDapv and
suggested that this feature be restricted.
Mr. Young reiterated that he did not ask
for consolidation, and the section referred
to only related to the Joint use of tracks.
He consented, however, 20 striking out the
clause.
Mr. Cowherd also suggested that pro-
vision be made for giving notice to each
stockholder of the filing of the certificate
of the consent of a majority of the stock
holders to the consolidation. An amend
ment to this effect was made in accordance
with Mr. Cowherd's recommendation
At this point Mr.. Babcock said that there
were a number of gentlemen present who
We're prominently identified with the bust
ness interests of Washington. but We're not
Interested in the railroad. He would ask
for their opinion Of the contemplated cen
SoidatfOn.
Mr. E. J. stellwagen Of the firm Of Thos.
]. Fisher & Co. said ne was very much in
favor of the consolidation.
Mr.. Stellwagen's Views.
IF CONSOLIDATION Tledils, ne Sdlu, tHal
we are to have transfers over the entire
system. there Is no question that the citi-
zens OF Washington favor the consolida-
ton"
DO YOU know Of any objection on the
part Of citizens to the consolidation"
asked Mr.. Babcock.
II do not" ne replied.
Mr. Joseph Willard said he was interest
ed in Washington property. He said he
could unhesitatingiy indorsc what Mr.. Stell-
wagon had said, and he believed that it
would be to the advantage Of the travelling
public that The consolidation should be
Mr.. 8. w. Woodward of Woodward & Lo-
throp said the benefit which the improve
mems already made IN the system could not
be oyerest1mated Greater benefits, he
thought, would come if the plans of the
company should be carried out under the
proposed consolidation.
'.Do you know of any objections to the
consolida tion?" asked Mr.. Babcock.
IT do not, and l have not heard any ad
verse criticism 1t would be great benefit
to the suburban residents, bringing them
down to the center Of the city for one
fare.''
1T would help the residents of Maryland
adjacent to the city, would 1t not?" asked
Mr. Pearre of Maryland
Most decidedly he replied.
Mr.. Moses Advocates the Bill.
Mr.. w. H. Moses advocated the bill. He