The evening times. [volume] (Washington, D.C.) 1895-1902, 1901-06-01
PRICE ONE CENT.
FALLS TO MAKE PAYMENT
The Washington Traction and EIec-
trie Company in Default.

RHmor of a Plan of REORGANIZATION.
BOndhoIders to Receive go Per
Cent of New Issue and 30
Per Cent in Preferred Stock.
NEW YORK June 1.-The Wash
ington Traction and Electric Company
today defauIted in the payment Of the
interest on its first mortgage collateral
bonds. At the United States Mortgage
and Trust Company, where the inter
est payments are made, the statement
was made that the railway company
was unable to meet the interest pay
ment amounting to somewhat over
$500, 900.
The New York News Bureau says:
Default having occurred in the pay
ment Of the interest due June 1 On first
mortgage collateral trust bonds of the
Washington Traction and Electric
Company, c. ". Young, J. c. Brown,
James Simpson. W H. Hollister, and
C. NJ Lane have been requested by the
holders Of the majority Of said bonds
to act as a commission for the protec-
ton of the majority Of said bonds and
to prepare a plan Of reorganization,
which they are now doing. George W.
Young has been elected chairman
"Bondholders are requested to send
their names and addresses toge her
with a statemest Of their holdings to
Richard NJ. Hurd, SO Cedar Street, the
secretary
The News Bureau adds on the author
ity of "a banking house" that it is an
derstood that an agreement has been
reached whereby the company viii be
reorganized or the following basis: The
present 81. SOC, 900 of 1-2 per cent bonds
are to be exchanged for IS per cent in
the new per cent bonds and So per
cent in new preferred stook The com
mon stock is 20 be assessed Is per cent
The announcement in The Times this
morning that the Washington Traction and
Electric Company would default in the
payment of its interest today vas the
topic OF conversation on F Street, to the
exclusion Of almost every other subject.
The holdings Of the bonds in this city are
not large. comparatively, but several hun
dred thousand dollars are invested il
them here. Aside from this direct pecu-
MARY interest OF many people in the an
nouncement, the financial community in
general has watched the affairs Of the
Washington Traction Comrat1y from the
beginning with much interest.
The plan outlined IN the New York de-
spatches for the reorganization of the
company was heard locally early in the
day. It is not understood that this plan
has been decided on finally, but It is
thought probable by careful financial peo-
pie that it viii be adopted as the best
solution of the difficulty possible under the
circumstances. The plan gives TO the pres-
ent bondholders 50 per cent Of new bonds,
ead thus cuts the bonded Indebtedness
nearly in half The interest IS reduced 70
! per cent, and this reduction makes the
interest payments a trifie less than half Of
the former amount. This radical reduction
is thought by many to make the outlook
for the new bonds an excellent one
Estimates were various in the Street
as TO what the price OF the new issue
viii be IN the market One conservative
banker stated his belief that it viii be at
least 50. The preferred stock viii take the
place Of the second half Of the bonds. This
stock is very much an unknown quantity
but oDtimisticaiIy inclined people are Of
the opinion that its value should be at
/ least sufficient to make Ut to the present
bondholders the recent market price Of
| the old issue round 65-
1t was learned today that d very large
| block OF the bonds was purchased yester-
day afternoon for 66 after the news of the
inevitable default in the interest had been
heard This purchase was argued to show
confidence on the part of insiders that the
reorganization plan viii be successful
It is supposed that the assessment Of
SIS per share on the issue OF 100000
stock of the company or 3, SCI. coo viii be
utilized to pay off the floating debt Of
| the concern.
| Further rumors that an entirely new
coterie of New York capitalists are in
control Of this stock and hence OF the
! company itself were heard today. II
there is a new control it is possible that
| the plan of the bondholders' committee
| viii not meet with approval from IL and
/ that further complications may arise. In
| this event the disruption Of the Washing
/ ton Traction Company is thought to be
| not impossible
The Washington Traction bonds were
! firm on the local exchange today around
| t65, a slight concession from yesterdays
price