Evening star., 1901-10-05
CITY AND SUBURBAN ROAD
THE MINORITY STOCKHOLDERS
PROPOSE SALE OF HOLDINGS.
EHort to Settle Differences Out of
Court-Matter of Appointing
Receiver.

Signatures OF minority stockholders OF
the City and Suburban Street Railroad
Company are being secured to an agree
ment by which their holdings Will be de-
posted with the Union Trust and Storage
Company as trustee The understanding is
that this stock is to be placed at the dis
rosal of President Davidson of the Balti-
more Trust and Guarantee Company OF
Baltimore, which concern placed on the
market the bonds of the City and Suburban
Company.
This action on the part of the minority
stocRnoiders .oans,.a was taken IN response to a
peared to do what he could to bring about
settlement out of court of the proceed
fngs brought by the minority stockholders
against those in control. This can be ac-
compifshed II terms can be agreed upon by
the purchase of the stock of the minority.
By the terms Of the agreement the mi
nority stockholders authorize Mr.. David
SON to dispose Of their stock at not less
than $40 per share. In the event a price
equal to that Is not offered and a lower
figure is proposed by the majority, then it
win be necessary for Mr. Davidson to Sc
cure the consent of the stockholders be-
fore concluding the transaction.
1t is the opinion of some that II the mi
nority stock. amounting to about 1000
shares. or the major portion of 1t, becomes
the property of the present controlling in
terest. that then possibly the proceedings
begun yesterday for the appointment Of a
receiver will not be pushed and the reor-
ganiZation plan will be carried out without
recourse to the sale of the City and Sub
urban road.
The Application for Receiver.
According to the bill filed yesterday ask
ing for the appointment of receiver the
complainants say that the total receipts OF
the defendant railway company from all
ilo
it's total disbursements during the same
period amounted to $43S, 497 %, the disburse-
ments exceeding the receipts by s2G2 56s. 90.
The expenses of operating and repairing
during the year were $197, ,3i2. .06, and inter-
est charges were $92, 1928 making a total
of $3.50, 46S.O1 exceeding the total receipts
of the company by 500, ,536 73. No dividends
were paid upon stock. nor was any fund set
apart as sinking fund for the retirement
of bonds.
The complainants charge upon informa-
tion and belief that 'the gross earnings of
the company since January 1, 1901, have
not been sufficient to meet its fixed charges
and necessary operating expenses although
no default has as yet been made in paying
interest upon it's bonded or mort gage debt.
The complainants also aver upon informa-
tion and belief, and upon the statements
made by the officers of the company in
their reports, that the company is not now
able to earn It's operating expenses and fixed
charges, and is therefore hopelessly insol-
vent"
The complainants aver that "the railroad
and property owned and controlled by the
defendant company constitute one of the
most important lines Of street railroad In
the District of Columbia and form con-
Meeting link of communication between the
city of Washington and many of the pop
uous neighboring towns and villages OF
the state of Maryland; that it is essential
for the preservation of the many interests
involved and for the security of the COM
plainants that the railroads In the District
should be operated as whole for the bene-
fit of all parties concerned; that suit has
already been instituted against the de-
fendant company by certain stockholders
in which it is alleged that the company is
insolvent. and In which 1t Is prayed that
it's property may be sold and that trustee
may be appointed for that purpose"