The times. [volume] (Washington [D.C.]) 1897-1901, 1900-08-22

70, 1888, being an act TO amend the cnar-
ter Of the Metropolitan Railroad Company
OF the District of Columbia, which pro-
vides:
=" That the Brightwood Railway Company
and the Georgetown and Tenleytown Rail
road Company be and they are hereby re-
spectively authorized and required to sell
four coupon tickets for % cents, good for
one continuous ride in the District of CO.
lumbia over the lines of the said COM
panies, respectively. and the lines of the
Metropolitan Railroad Company, AID the
said suburban roads shall redeem the
| tickets collected by the Metropolitan Rail-
road Company at the rate of 2 1-2 cents
for each coupon ticket presented by the
said Metropolitan Railroad Company.
This law is clear and unambiguous. and
does not require the application Of rules OF
construction for its correct understanding
! ard Interpretation. Since its enactment
there has been no provision Of law re-
quiring the Metropolitan Railroad Com
pany to give free transfers for the trans
portation over the Brigntwood Railroad
| Company, or vice versa. 1t follows. there
fore. that the act approved February Is,
1895. above quoted, controls unless 1t has
been in any way affected by the act of
| Congress passed at its last session, au-
! thorizing the consolidation of local street
1 railroads under certain conditions.
BY the act Of Congress approved June
! D. 1900 entitled An act relating to certain
railroad corporations owning or operating
street railways in the District of Column
bia. it is provided that the Brightwood
Railway Company of the District of Co
lumbia, the Metropolitan Railway Com
pany of the District of Columbia
and other companies therein named.
may enter into contracts with each other
or with any Of the others for the use of
their respective roads or routes upon GER
| tain conditions. Section provides that
| the Washington and Great Falls Electric
Railway Company may acquire and hold
stock in any of the railroad corporations
mentioned in the act, and may also con-
tract for the purchase of the estate, prop
erty rights and franchises of such other
corporations.
THE next TO the last paragraph of sec
ton of said act provides as follows:
THAT the Washington ard Great Falls
Railway Company. on the purchase of the
property or franchises OF any or all of said
railroad companies as in this bill author
lied, shall be empowered to charge over
the said route or routes thus acquired the
rates of fare now authorized by law 10 be
charged thereon by the respective CON-
panies owning or operating the same and
no more
and the concluding paragraph of said
section provides as follows;
All obligations imposed by law upon
any corporation whose road or route is ac-
quired in accordance with the provisions OF
this act except as the same may be ex-
pressly modified or repealed by this act,
shall continue to be applicable to such ac-
quired road or route, and shall be confined
thereto, and such road or route shall BE-
acquired subject to such obligations and
with all the rights and powers possessed
by the selling corporation
Voc hi utn md a
trio Railway Company has not yet exer-
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 II the consolidation OF the
various roads mentioned In said act is eff
fected, in view of the express reservation
in reference to rates of fare quoted. the
situation would not be charged in any way.
1T is suggested in the papers herewith.
and seems to be within the scope of tn
reference. that the various roads. includ-
ing the Metropolitan and Brightwood Rail
road Companies, have already besn consoli-
dated, and are in legal contemplation, il
not in fact a single corporation, owning a
single road with various branches. This
claim makes it proper and NECESSARY to
state briefly the actual condition OF affairs
I now existing.
Several gentlemen purchased the con-
trolling interest of the stock and bonds In
some. and all of the stock and bonds Of
other of the local street railroads, among
others, OF the Metropolitan Railroad Com
pany and the Brgntwood Railway Com
pany. These gentlemen. for the purpose OF
convenience, organized the Washington
Traction and Electric Company. corpora.
ha Law cf pf
ginia, with very broad powers, among
others, with power to purchase bonds and
stock Of other corporations, and to issue
in exchange or payment therefor its own
stock or bonds or other obligations. The
purchasers OF the stock and bonds of the
local companies transferred the same to
the Washington Traction and Electric
Company, as ! am informed in considera-
ton CT certain stock and bonds OF said
Washington Traction and Electric Com
pany. The Washington Traction and Elec-
trio Company. in order to secure an au-
thorized issue Of twenty millions of bonds,
transferred the various shares of stock
and bonds of the several local corpora
tions acquired as above stated, to a trust
company by way of pledge, reserving to
the Washington Traction and Electric
Company the right TO vote the stock
While therefore, it appears that a sin
gle corporation has become owner of a
majority 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 author
lied issue of twenty millions of bonds, ii
does not follow that such corporations
have become a 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 corpora
ton, possessing all rights conferred by
law, as il the stock and bonds of such
corporations were held by the original
purchasers as individuals instead 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 as basis for the issue
Of stock and bonds. without the power IL
it so desired to effect merger or consoli-
dalton u the local street railroad compa-
MES.
Il am, therefore. of opinion that pas
sengers OF the Brightwood Railway Com
pany are not entitled to free transfers
to the Metropolitan Railroad Com
pany, and that the act of February %,
1895, authorizing and requiring the Bright
wood Railway Company to sell four cou-
pom tickets for % cents, good for one con-
tinuous ride in the District of Columbia
over the lines of said company and the
lines of the Metropolitan Railroad Com
pany is still in force
Treaty With Spain.
The State Department was Informed YES
terday by Minister storer. at Madrid, that