Evening star., 1901-10-03
THE RAILWAY JUDGMENTS
COMMENT ON FUTURE OF CITY AND
SUBURBAN INTERESTS.
EFFECT of the Action Taken in Court
as Viewed In Financial
Circles.

The announcement in yesterdays Star
that judgment in default was given yes
terday in suits brought against the City
and Suburban Street Railroad Company
for loans made to that company was the
topic of considerable comment in local I'm
ancial circles today. AS to the effect of
this action it is generally the opinion that
this course was adopted by those who
brought the suits. and who also control
the Washington Traction Company, in or
der to provide for certain contingencies.
The next step in the legal process may be
the filing of judgment creditors bill and
in due course the railroad would then be
sold.
fled from the proceeds of such sale pro-
viding anything is left after paying off the
bonds, which aggregate 81, 10000 of per
cents.
1t is not known definitely whether or not
it has been decided by the interests con-
trolling the Washington Traction Company,
the holding company for the City ana Su-
burban and allied roads, to proceed as far
as that in this case In the event the road
is foreclosed it is thought the present own
ers will be the purchasers, and that the
principal result from the procedure will be
that the present issue of stock, amounting
to 81, 1900, will be wiped out, AS all the
stock but about 1000 shares is owned by
the syndicate, their assets at least on paper
swill be to that extent reduced, although
the actual value of the stock at this time
may not be large.
~4tSome of the minority holders have al
ready filed a petition in court asking for
the appointment of a receiver for the road
and 1t is conjectured that possibly the judg-
ment suit plan may have been adopted in
view of such contingency. 1t is probable
that there will be some developments in
the course of the next few days which
will show whether or not proceedings are
to be continued along the line as marked
cut by the result of the courts action yes
terday in the Judgment suits
1t is possible, of course, that nothing
more will be done in that direction, and
that the plan of reorganization will be car
ried out, which involves in the first place
order from the court directing the sale
of the stocks of the various companies held
by the Washington Traction Company
Then, as will be recalled, it is proposed
that the purchasers of these properties
organize q company.
On the other hand, there are people who
believe that the syndicate adopted the meth
cd as indicated by the judgment suit against
the City and Suburban Company for the
purpose of getting rid of the minority stock
even though it involves the obliteration of
the entire stock issue. 1t is said by the
same persons that they would not be sur
prised if judgment suits were entered
against the Georgetown and Tenleytown
company, and also against other of the
companies where there is a minority stock
interest except, of course, the Metropolitan
company, which is a solvent concern. and
the Columbia company, which is also SOL
vent, the entire stock issue of the last
named company being owned by the syndi-
cate
In this connection it is interesting to note
the reported demand here for the bonds of
the Washington Traction Company. 1t is
said that especially when offered in block,
a ready market is found for these securi-
ties 1t is believed this demand comes from
New York, and that the bonds are being
bought by the present owners of the prop
critics in preparation for carrying out the
plan of consolidation.