Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-03-28
RAILWAY CONSOLIDATION
A HEARING BEFORE THE HOUSE
DISTRICT COMMITTEE TODAY.
Mrs. Letters Objection to the PrOpos'
cd Bill Stated by Nathaniel
Wilson.

The House District committee gave a
airing today upon the bill H. r. 9493.
authorizing certain railway companies in
the District to consolidate.
The railroads authorized to be CONSOLE
dated by the bill are the Anacostia and
Potomac River company, the Brightwood
railway, the Capital Railway Company. the
City and Suburban, the Columbia COM
pany, the Georgetown and Tenleytown, the
Metropolitan, the Washington and Great
Falls, the Washington and Rockville. the
Woodside and Forest Glen and the Glen
Echo company. The hearing was given at
the request of counsel for Mrs. L. z. Letter,
who opposes the proposed consolidation as
a shareholder in the Metropolitan Rail-
way Company.
The hearing brought to the Capitol rep
resentatives of the railway companies and
legal counsel in the persons of MIR. Jere-
miah Wilson. Mr. Nathaniel Wilson, ex-
Senator Faulkner, Mr.. J. ]. Darlington and
MIR. Joseph r. Auerbaoh of New York.
Mrs. Letters Objections.
Mr.. Nathaniel Wilson opened the case m
Mrs Letters behalf. He said the bill pro-
v:des for consolidation, to which Mrs Letter
was opposed, but that the principal objec-
ton was to the paragraph which provides
that after 30 per cent of the stockholders of
any of the roads have consented to the con-
soidatiOn the assent of the remaining
stockholders may be compelled through
application to the court and the appoint
ment of appraisers.
He said that Mrs. Letter owns one-twen-
tieth of the stock of the Metropolitan Rail-
way Company, amounting to 1870 shares.
She objects to the proceedings contemplated
in this bill, because it is unlawful. mex
pedient. unnecessary, and intended to de-
n vinlaffnn nj
the fundamental law of the land Mr.. Will
son contended that practically all of the
transfer and trackage arrangements con-
templated by the bill, and which would be
urged in favor of its passage, are already
provided by existing law. He said the OBJ
1ect of the bill is to use the profits of the
metropolitan Railway Company and the
Columbia Railway Company for the benefit
of the non-paying properties which would
be included in the consolidation. Mr.. Will
son read from the annual reports of the
lines proposed to be consolidated, and said
that they showed that outside of the CO.
lumbia and the Metropolitan companies,
none of the other roads was on a paving
basis, but that their operations for the last
year produced a deficit of $4,000.
The Absorption Described.
At this point Mr. Wilson proceeded to de-
scribe the absorption of the various lines
OF the city by the foreign corporation
known as the Washington Traction and
A-iStliit NoHpdlly IlS company was Or
ganized in Norfolk, Va, last June, with a
capital stock of s12,OOO,OOO. The company
was authorized to take anything in pay
ment for stock, labor, bonds, stock or any
other consideration. The company issued
S1O.OoO000 of capital stock, reserving s..
100000 for future use. The company is
bonded for s2O,OOO,OO0. 1t reserves $780,
ooo worth of bonds for the constituent COM
panies. 1t withholds 81 100000 more and
has actually issued $12OOOOOO worth of
bonds. These bonds are secured by the
stock of the constituent companies held as
collateral. Mr.. Wilson said that the for
eign corporation has secured 1O2.OS2 shares
of the III ,9!4 shares of stock of the eight
city roads; has obtained $3.50 shares of the
GOO shares of the three Maryland roads,
and owns 2D,4O shares out of the ~, SGD
shares of the two electric light companies.
He contended that under the bill Congress
turns over to the company an option to
consolidate or not. The bill does not re-
quire consolidation, but leaves 1t in sus-
pense at the discretion of the company.
Value of Mrs. Letters Holdings.
At this point discussion arose as to the
value of Mrs. Letters holdings, and Mr..
Jenkins questioned Mr.. Wilson, who re-
piled that the par value of her 1.27O shares
was $50 share. The company had offered
$3.50 share to all holders. Mr.. Jenkins
wanted to know if Mrs. Letter demanded
$3.50 a share for her stock.
Mr.. l.. Il. Letter, who was present, said
that Mrs Letter had never placed a price
on her stock. Her son had said that he
would suggest to his mother to sell at $3.50
a share, but Mrs. Letter had not accepted
the suggestion, and she desired to retain
her interest intact. The company had never
made a specific offer. except the general
offer of $40 contained in the circular sent.
all stockholders.
Mr. Wilson was questioned by Mr.. Jen-
kins, Mr.. Pearre and Chairman Babcock
tl,n, o;,, H.,
consolidation. Mr.. Wilson took the ground
that it would not be for the benefit of the
city to make the suburban roads part Of
the city system. 1t would mean the &C.
commodation Of the man in the country at
the expense of twelve men in the city.
Mr.. Pearre suggested that 1t might mean
the accommodation of the city man who
wants to go out into the country.
What Mrs. Letter Can Do.
Then the question comes back" said Mr.
Jenkins, ito the proposition that the
greater roads must help the weaker, and
if Mrs. Letter doesn't want to help the
weaker ones, she can take her money and
go out of the company"
Mr.. Wilson said that If it was proposed
to say that because Jones' income was
greater than Smiths, Jones should divide
mis-, that might be SO.
Mr.. Jenkins held that was not an answer
to his question.
Mr.. Jenkins said that the railroads were
willing to bear the burden of the suburban
business, and no one seems to stand in the
way except Mrs. Letter. 1t would seem,
therefore, that Mrs. Letter must be al
lowed to keep her money where 1t would
grow, while the city suffers.
Mr.. Babcock wanted to know If the Met
ropolitan railroad can afford to carry pas-
sengers for a 3-cent fare
Mr.. Wilson said that, taking into consid-
GRAFTON what the road had lost in the past,
he would answer no. In its present condi-
ton it might be possible to carry passen-
gers at a less rate than the current one,
but he was not prepared to say what the
extent Of the reduction might be-
Time to Answer Wanted.
At this point Mr.. Joseph Auerbach of
New York. counsel for the Washington
Traction and Electric Company, demanded
that time should be given to answer the
allegations made by Mr. Wilson.
I'VE are not here in the interests of the
public said Mr. Auerbach. I'VE are here
for our own selfish interests, those of a
great corporation, as Mr.. Letter is here for
himself"
He commended that Mr. Viycop boa 80