The times., 1901-06-05
TRACTION AFFAIRS QUIET
Receiver McDermott Begins His
Work Under Orders of Court.
REORGANIZATION Plans of the Con-
trolling Interest Not DivuIged-A
Large Sale of the Company's Bonds
in the Local Market Yesterday

West Virginia, has appointed Allan l..
McDermott receiver and the property has
been turned over to him. There was no
opposition. G. A. Lieb, who represents
and controls the majority of the stock,
assented. The rumor of a fight between
the stockholders and bondholders is who'll
ly false.
The BondhOlders' Committee is busy ar
ranging plan of settlement. which will
probably be based on an assessment of
stock to pay of the floating debt, reduc-
tion of interest on new bonds, and an ex-
change of present bonds for half new
bonds and half preferred stock 1t is
claimed that while traffic Is increasing
and expenses diminishing that the pres
eHt extensive transfer system cannot be
maintained and leave any money for
stockholders. It will probably require
six months to effect a reorganization.
Meanwhile the receiver will control the
road.
Receiver Allan L. McDermott, of the
Washington Traction Company, was on
duty at the office of the company yester-
day in the rooms formerly occupied by
him as president Of the company. He
began Immediately the work of admins
tration as an officer of the courts for a
bankrupt concern. Mr.. McDermott refused
to make any statement az to his plans
or those of the controlling interest of the
bondholders. President Young. of the
United states Mortgage and Trust Com
pahy, which is the trustee of the bonds
also refused to make any statement when
seen IN New York yesterday. He declined
10 talk either as the president of the
company or as Chairman Of the Reorgani-
Zatiou Committee. There was a marked
disposition toward reticence in all officiaI
quarters.
The fact that the application for a re-
ceiVcr was made by the United States
Mortgage and Trust Company and that
Ar. Young, the president of the company,
IS asso the head Of the Reorganizatf6n
committee, Is generally considered suf1-
clentiy clear evidence that the Reoreani-
zation Committee is actually behind the
Application and that this move is the first
step IN the reorganization plan Any
holder Of the bonds of the company mimi
cal 70 the controlling interest could have
applied Tor receiver when default was
Ihade IN the payment Of interest. and
inlSIlt, or course, have made the work of
the REORGANIZATION Committee impossible
or at least much more tedious than it
may De under the present auspices.
Ihe question if any tangible important
opposing interest has deveIoped durina,
the past few days is discussed i'm f Street,
Dut there Is not much evidence either TO
support or to refute such a suppositfon
one theory is that the REORGANIZATION
committee did not at first contemplate a
receivership. Nothing was said of such
a plan by those who attended the meet
ing or the bondholders. 1t Is suggested
that the decision to apply for receiver
must nave been arrived at suddenly on
saturday or later. The best possible rea-
son for suck decision would be the dis
covery that some important interest.
either among the bopdholders or the
stockholders. was not willing to allow the
reorganization to proceed along the lines
at first considered.
On the other hand. people close to the
company allow It TO be inferred that there
Is no such important opposition to the
principal bondholders. 1t is intimated that
there has been a change in the control |
OF the stock of the company recently
which would carry with it the control of
the company itself. But the new interest
1t Is said, is entirely at harmony with the |
This is one of the matters
that may have interesting developments |
later.
The Washington Traction bonds were
especially strong in the local stock mar
ket yesterday. large block changing |
hands at G5& and SOS. 1t is said that
there vas an order from New York for |
more of the bonds than
could be purchased al this price. This |
demand was generally considered to mean !
side to have accurate information were |
satisfied with the prospects of the bonds |
under the reorganization plan. 1t was /
not thought that any outsider would care |
to venture in the dark so heavily imme-
diateiy after the default in the interest on !
the bonds. The bonds that were sold |
were nearly all in small lots and it I
seemed TO be the impression that many of |
the local holders were anxious to sell out !