The Washington times., 1901-10-16
RAILWAY PLAN APPROVED.
Holders of Washington Traction
Bonds and Stock.


Time for Deposit of Bonds and stock
Extended to October 81 to Sc
cure Unnnfmity-Earnin of Syn
dicate Lines Increasing Rapidly.
The statement is now made on official
authority that the reorganization plan of
the Washington Traction and Electric
Company in all probability will be carried
through successfully, and the new COM
pany formed in the manner set forth in
the official plan advertised and de-
scribed heretofore in the newspapers and
in circulars issued by the reorganization
committee. There is also official infOr-
nation regarding the recent earnings Of
the different companies Of the system
which makes the outlook for the new con-
Germ excellent from financial standpoint.
There was some opposition on the part
of the stockholders of the Washington
Traction Company when the reorganiza-
ton plan was first proposed. Some of the
holders of bonds also cid not deposit their
holdings with the deposftary company at
first. This opposition has been Withdrawn
and the depositaTy company has received
a very large majority of both stock and
bonds as subscribers to the plan. This
withdrawal of opposition is considered to
presage the smooth adoption and carrying
out of the plan. The time for the deposit
of both bonds ard stock has been extend
ed to October 81 in order to secure a
unanimous consent to the plan if possible.
The opposition of the stockholders was
for the most part based on what they con-
sidered their poor outlook for any returns
for their Investment in the near future.
It is stated that the recent earnings of
the company have been so much larger
than those of last year that they are
much encouraged. The August earnings
statement of the company discloses gross
earnings of $1,000 in round numbers, op-
Grating expenses of SOS, 600. and net earn
ings of SS1 900. The net earnings show an
increase of $40, ,O00 over the net of August
1900. All of these figures are most en-
couraging. but the excellent effect of the
economies in management shown by the
reduction in the operating ratio is perhaps
even more important The relation Of
cost of running the system to total re-
ceipts in August year ago was Gf per
cent. The figures above given show that
the cost of operation this year was only
81 per cent, leaving for net earnings 46 per
cent OF the gross receipts instead of only
II is believed that several additional
economies can be effected in the immedi-
ate future which viii reduce the operat-
ing expenses to 30 per cent. If this is
done with the reduction in the interest
on the new bonds of the company to
per cent instead of ~ per cent. it seems
certain that the company Immediately
will be able to pay interest charges and
have a good balance over for the pre-
ferred stock. The preferred stock thus
may be put on dividend basis of to
per cent next year This is a much bet
ter showing than was at first hoped for.
Tie earnings figures Of the reorganiza-
ton committee printed in its pamphlet
have been given heretofore in The Times,
but may be referred TO here again in this
connection. Tine committee made the
following statement.
THE gross earnings of the combined
railway and electric light properties from !
January l. 1901. to July l, 1891, as certified
by the officers of the company. have been
81, ,Os6, ,240; the net earnings for the like
period so certified have been $iS2,S6S.
AT the same rate for the remaining
six months of the year 1901, which the !
president of the company has certified is.
in his opinion. a conservative basis of
estimate, the earnings Of the properties |
for the year 1901 would be as follows:
Gross earnings, $2,172, $50; net earnings. |
1866, 726. The annual fixed charges of the !
new company. even if all properties whose |
shares OF stock are h ald as collateral are |
acquired by the new company, viii be: |
Interest on s., ,6Q7, $50 underlying mortgages |
tassuming all street railroad properties to |
be acquired by the new company. for !
which an equal amount of first mortgage I
per cent bonds are reserved ir the |
treasury, $3SS, ,019: interest on first mort |
gage per cent bonds issued to present !
bOndholders and for additional property /
aud for part expenses of reorganization, |
about SS35,69 interest on present funded |
ard floating debts of electric lighting COM
panies not exceeding S5l.50e; taxes (esti- |
mated, 900. Total (abou9 $S75,AS
il will be seen that the ''esti- |
the earnings for the first half of the |
present year, is of gress earnings, s.. .172,- |
$50, and net earnings. 1866, 1856. This esti- |
mate is not so good as the August fig
ureS seem to warrant. 1t may be noted. |
for instance, that in this estimate the net /
earnings are less than IS per cent Of the /
gross earnings, whereas the August |
is hoped to increase it sun further. TO |
30 per cent. Supposing the gross earnings I
for the full year 10 be s2,172.4s0 and the |
net earnings 80 per cent of this, they
would be 81 .C15 240. If then, the fixed 1
charges. as given by the plan quoted |
above, are to be about sS75 900. there !
would be a balance over fixed charges Of
something over S20SO90. This would be
equal to between > and 3 per cent on the
preferred stock.
1t Is quite probable that the City and
Suburban Railway which has been the
heaviest load of the system, win be
dropped out by the reOrganized company,
as one Of its first economI -. 1t is not
known how this viii be accomplished.
Possibly the receiver now in charge may
tod al HFaF FNfHFN n
The City and Suburban bondholdcTs or |
anyone else that may see fit to buy. This |
would be a drastic measure, and in all
would lose to the reorganized
company the $224. 900 that was lent TO the |
City and Suburban.
Ii is believed that tho improvements and |
;avines now being established in the cleo
.ric department of the system viii result |
ilone in a net increase OF income of from
10 coo to 100000 a year.
ST. JOSEPH'S GERMAN SOCIETY.
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