Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-02-01

the method of R*2ping accounts of sup
plies or materials purchased he defend
ants say that supplies are purchased for
the convenience ard ca5rmun benefit of the
Metropolitan and Columbia companies: that
the supplies are stored in the storage rooms
OF the Metropolitan company. On 4i2 street:
that separate and distinct account was
ke,,, OF the purchase and issue; that the
fuii rental value of such storage rooms is
pad 10 the Metropoifta:i company, and
that the Metropolitan company is not
charged anything for tac storage therein
OF its own supplies. The defendants deny
that tie amounts and sums OF money Tor
power material or supplies for operating
the power houses are ascrrtained by rule
or measure arbitrarily fixed or adopted
by the Washington Traction Company.
1t having been alleged in the Letter bill
that tickets belonging 10 other companies
had been sold Oil the cars of the Metropol-
ftan Company to the dcttiment of that
corporation and its Stockholders, the de-
PENDANTS in their answer show that the
supply of tickets of the Metropolitan Com
papy became exhausted in July, and that
the Metropolitan Company purchased from
the Brightvood and City and Suburban
companies tickets. for which the companies
selling the tickets were duly paid. and
which were redeemed by the Brightwood
and City and Suburban companies.
The Question of Transfers.
An interesting paragraph is that which re-
pies to the allegation attacking the free
transfer system put in operation by the
Washington Traction Company. The de-
PENDANTS admit the organization of such a
free exchange system, and they also admit
that in the early installation of so large a
system there was some dissatisfaction over
details, but the dissatisfaction could not be
compared to the general convenience to the
public or with the general popular salts
he
There is the most direct denial as to the
allegations of diversion or :nisapplicati ton
of moneys credits and securities of the
Metropolitan Company.
The defendants say the matter of the
power of the Metropolitan Company to
make loans Of the proceeds of it's bonds
ana other funds to the suburban companies
was submitted to counsel, and the de-
PENDANTS, constituting the board of dlrec-
tors OF the metropolitan Company, were
advised that such loans were within the
Incidental corporate powers of the COM
pany, and thel: action within the province
of the board CT directors.
The defendants say the interest upon the
loans made has been paid up to and in
Guiding December 81, 1899, at the rate of
q per cent, aggregating the sum of 5,204 81.
and that the payment of their interest and
principal, upon demand, Is amply secured
in the judgment of these defendants by the
Endorsement Of the Washington Traction
and Electric Company.
These defendants further say that the
bank balance of the defendant company on
July I, 1899, amounted to over SIPS, 600,
CARRYING interest at per cent only, of
which $4,000, and no more, was loaned at
g per cent to the said suburban companies,
and that the bank balance, earning per
cent for the subsequent months to and
including the month ending December 81,
1899, We're respectively upwards Of $4,000.
Their Acts Lawful.
The defendants submit to the court that
their action in, relation to these loans and
lawful. proper and judicious, but If the
court shall be Of contrary opinion, or
should decide that it is the right of the
complainant. either legally or equitably, to
have the said loans to the said suburban
companies called in, these defendants are
able, ready and willing, and do hereby
offer to procure the immediate return Of
the said 2U7 bonds of the Metropolitan COM
pany, together with the repayment OF the
said $4,000, and the accrued interest at the
said rate of 6 per cent up to the time of
such repayment.
Specific denials are made of the allega-
tons relative to the wrongful payment Of
passenger receipts and as to any important
purchase of supplies from airy supply com
pany in which certain of the Metropolitan
directors are interested.
1t is denied that the roadWays, conduits,
tracks, cars or electrical equipment of the
Metropolitan Company have greatly de-
Perforated. Those essentials are all said to
be in good order.
AS to the bookkeeping, it is averred that
it is in far better shape than it ever was
under The old management; that it is now
according to the methods of the National
Street Railway Accountants Association.
The answer was filed by Attorney J. J.
Darlington, general counsel for the Wash
lngton Traction and Electrical Company.