Evening star. [volume] (Washington, D.C.) 1854-1972, 1901-01-31
RAILROAD PLANS
Consolidation, Not Reorganization,
Proposed for the Traction Company.
CHANGE IN The BASIS OF TEE BONDS
Confidence in Future Of Enterprise
by Those in Control.
AIDED BY MIR. STEW EMS

The announcement in yesterdays Star Of
the retreme at from the presidency of the
Washington Tractio ii and Electric Company
of Mr.. Frederick c. Stevens, and the cleo
ton to succeed him in the presidency, as
well as in the directory of that and the
constituent companies, of Representative
Allen l.. McDermott of New Jersey has
called more general attention to the af-
fairs of that company. AS might be nat
uraily concluded, not only from the mag
nitude Of this enterprise. but from its vital
relation to the material development and
prosperity of the city. much public interest
Is manifested in the company and it's con-
Germs.
There has been good deal of gossip
current, especially to the policy that
would be pursued relative to the consolida-
ton of the eleven street railroad compa-
nies and the two electric lighting com
panies, the stocks of which are the collat-
e1al upon which is based the bond issue of
the Washington Traction and Electric Com
pany. 1t has also been conjectured that
The enterprise was not as yet on paying
basis and that the receipts We're not suf-
ficient to meet the entire fixed charges,
and this has lead to a good many specu-
latonS as to a probable change in the con-
troll.
In the absence of specific and definite in
formation the street rumors have been Of
a conflicting character.
Since the resignation of Mr.. Stevens
which had been anticipated for some time
as 1t was quite generally believed he had
no intention of neglecting other interests
by continuing for any length of time at
the head of the traction company, state
mentS OF more positive character have
come direct from those in control of the
company in regard to its prospects.
II is now asserted positively that the
prevailing rumors relative to an alleged
reorganization of this company are without
foundation, and that those in control have
no intention Of carrying out such policy
as is conveyed by the meaning of the word
reorganization, that is, sealing down of
the securities of the traction company,
either by another issue of bonds or In any
other way.
Consolidation Proposed.
What Is contemplated is asserted to be
the consolidation of the various properties
as authorized by the legislation obtained
at the last session of Congress
The present stock and bond issue Of the
Traction company result Of the con-
solidation, proposed, will remain un-
changed in amount and the bonds, instead
of being collateral, will become a mort
gage bond, secured on the united proper
ties. The outstanding traction bonds will
be exchanged at their par vaiue with those
of the new issue, as authorized by the law
permitting consolidation.
This policy, 1t is further stated, will be
pursued by those in the control of the
company, because they believe in the fu-
ture of the enterprise and have confidence
that 1t Is sure to come to point where
the fixed charPes can be fully met. Fur
ther, 1t is stated, they are willing to con-
tinue in the future they have in the
past to supply any deficit in the earning
capacity of the system, but they do not
asticipate that this result will be long de-
ferred. 1t is rlso claimed that the change
in the presidency does not mean a change
those who are the large owners of the Sc
curities retain and will retain their hold
tngs.
One OF the phases of the change that is
commented upon favorably in local busi-
ness circles is the freeing of Mr. Stevens
from the absorbing duties Of street rail-
road management, thus enabling him to
give more time to the important local In
addition to being the president of the West
End National Bank Mr.. Stevens -has per-
haps more varied interests locally than
any other one Individual.
During his residence in this CITY, which
mas extended over such period as to al
most entitle him to be cal ed an old resi-
de 2e has applied rare gift for business
ni -sement to number of local concerns.
w!tn beneficial results. Those associated
with him In the railroad management have
only words of appreciation Of his capabili-
ties in business transactions, and of his
good qualities as a man.
His record as president of the railroad
company is exceptionally fine, and the con-
dttion OF the property az compared with
what 1t was when he took office last June,
remains as an enduring monument to his
abilities as the principal executive officer of
large enterprise.
Some of the improvements which he
planned have not as yet been carried out,
notably that Of the enlargement Of the
United States Electric Lighting Company's
plant so as to make 1t the central plant of
the system All the principal contracts for
this undertaking were made by Mr..
stevens. with the exception of that for the
erection OF the building. which will prob
ably De closed In the near future.
Mr.. Stevens successor.
The new president, Mr.. McDermott. is
the representative Of the large owners of
the properties, and Is one Of the we'll
known men in the state of New Jersey. He
is bright. active man, and his presence
in the management Of the Traction Com
pany insures the continuance Of the pro-
gressive policy.
What is Current in BaItimore.
Special Dispatch to The Evening Star
BALTIMORE, Nd, January 31.-Presi-
dent Robert c. Davidson Of the Baltimore
Trust and Guarantee Company announced
eS~S ~NA~~
the interest on the Washington city and
suburban per cent bonds, as well as on
the Metropolitan 5s, which are due tomor-
row. 1t is further given out here today
that the interest on the consolidated bonds
will, in the near future, be reduced from
AZ to per cent. and that the Issue of
$13,5OO,OOO in bonds will be changed to two
classes, one Of $6.750.OO0 4 per cents, and
the other $6,7Jo, 900 income bonds. in which
manner the fixed charges will be reduced,
as the income bonds will only receive in
terest when the earnings Of the system
justify it.
1t is estimated that the fixed charges now
exceed the earnings by nearly $30O,0 and
the effort will be made to so reduce them
as to more nearly correspond with the
earning capacity of the property. Selig-
man & Co., the New York bankers. are
said to have agreed to take charge of the
bonds under the new scheme
Late Consul Hunts Remains.
Steps are being taken by ithe State De-
partment for the removal to the United
States of the remains of United States Con-
sui Henry Nj. Hunt. who recently died at
his post. Antigua. w. l. The island au-
- 49,