Evening star., 1901-01-26
Rumors Regarding Affairs Of the
Washington Traction Company.
GOSSIP CONCERNING REORGANIZATION
Statement by One Interested in
the Corporation.
THE EARNING CAPACITY

local financial circles for some time in re-
gard to the affairs of the Washington Trac-
ton and Electric Company was expressed
in part at least, in the dispatch from Bal
timore in yesterdays Star stating that a
reorganization of that company was con-
templated. AS was reported in The Star OF
yesterday, the officials of the company in
thls~city declined to say anything IN re-
gard to this rumor, and this reticence pre-
vailed today, as Star reporter found wnen
he sought to interview those officially con-
nected with the company.
While, of course, those who give attention
to local financial matters have heard a
good many statements about the company
which have proved to be without founda-
ton, it is the general opinion shat recently
the prospects of the company have been
represented in a better light, and it has
been apparent that those who have been
supplying the money needed to accomplish
the great work that has been done of mod
erniZing the eleven street railroad COM
panies and the two electric lighting COM
panies have confidence in the enterprise
which is substantially shown by the ability
to secure the needed supplies of money
1t is pointed out that the large sum re-
quiTed to enlarge the United States Electric
Company plant, with the view of making
it the sole power plant of the entire sys-
tenn, is stated to be in hand and also that
the funds needed to meet the interest
charges have always been promptly avail
able 1t is further claimed that the men
who undertook this enterprise, realized it's
magnitude, and that they have expended
here millions of dollars, with the result
that splendid modern system of street
railways has taken the place of bankrupt
city and suburban lines, and the trunk
lines of the Metropolitan and Columbia
roads have been expanded by the addition
of weak lines, to the great advantage Of
the public.
Progress Noted.
While il is claimed that this policy has
not as yet led to condition where the in
come is equal to the cost of operation, it is
said on excellent authority that the Prog
ress in this direction has been more rapid
than was anticipated, and that the earnings
of the system which was finally completed
in all its parts only last June, are regarded
as satisfactory.
The local financial Identification with this
enterprise, far the funds used in the
purchase and equipment of the properties
are concerned, is small, but the company, is
so closely connected with the material de-
velopment of the city, and its Importance
and value generally recognized, that the
widest interest is expressed locally in this
undertaking.
Statement of Interested Party.
gentleman who is interested in the
w washington lTdCllOH OOmpdHy, III TAIN
ing with a Star reporter today, said:
Congress last year authorized the ac-
tual merger of the various railway prop
critics whose stocks are now owned by the
Washington Traction and Electric Com
pany. The outstanding bonds Of the trac-
tion company are collateral bonds, Sc
cured on the stocks of the existing COM
panies. 1t is the desire of those interested
to make use of the provisions f the act
nf referred
would permit mortgage bond to take the
place of the present collateral bond. and
discussion Of this change has taken place
from time to time and still takes place.
THE method Of accomplishing this
change may be varied somewhat according
to the choice Of those interested and the
problem is not altogether simple one;
hence the delay thus far in utilizing the
provisions of the bill mentioned. The ex-
listing collateral bonds would be replaced
under such plans by mortgage bonds. No
change in the Washington Traction collat-
eral bonds can in any way affect the Sc
curity of the outstanding and underlying
bonds on the various properties.
while considerable work remains to be
done in order to reap the full benefits of
consolida ton, the earnings of all controlled
companies are largely in excess Of their
past earnings, and this is particularly graf
flying. since complete operation of the
property electrically has been carried on
very much less than year.
The Anacostf2 Branch.
1.-The Anacostia road, including the old
Belt line, was begun as an electric opera
ton only last June and many of the SUBJ
urban roads were under reconstruction dur
ing similar periods. these delays interfering
with their earning capacity. There has
also been, for various reasons, delay in
obtaining consolidated power station, which
is now under way, and which will save
100000 year in operating expenses.
''Snce the completion of the whole sys-
tenn its earning capacity, both the electric
lighting and railway departments, show in
the most satisfactory manner.
Amy estimate of the earning capacity OF
this system based upon the conditions
which existed when large part of the
whole trackage was not operated at all or
operated by old-fashioned horse cars and
this interrupted by construction then in
progress, becomes merely ridiculous.
Attacks made upon the property,
using such figures as are absolutely out of
date, seemed to me to emanate only from
the disappointment the part of those
who through attempted legislation which
failed last Monday, have shown a desire to
compete with the electric lighting business
of the Washington Traction Company"