Evening star., 1901-09-24
RAILROAD TRANSFERRED
EFFECT OF DEED RECENTLY
PLACED UPON RECORD.
Old Southern Maryland Onspanys
Franchise Passes to New own
ers-Name Changed.

| BY the deed Of transfer placed on record
here Saturday last purporting u convcy
| the franchises of the Washington and Po-
| torac Railroad Company to the Washing
ton and Potomac Chesapeake Railroad Com
| pany, Gs announced in The Star, the last
step was taken in the final reorganization
| and closing out of the interests of Wash
| ingtonians in the enterprise known at the
/ time it was originally organized the
| Southern Maryland Railroad Company.
| About twenty-five years ago a number of
| Washington'S principal business men and
| prominent capitalists in the city of those
| days. consisting of Samuel S. Smoot, John
| Van Riswick, NJ. II. Hoffman and ]. II.
| Linville, and later Frank Hume and others,
| began the construction of railroad by
| which it was intended to open that SectfCn
| of southern Maryland extending from this
| city to Point Lookout, which territory. in
| the estimation of financiera of that day,
| was supposed to possess great possibilities
| for future development, and the town of
| Marlboro, in Prince Georges county, was
| thought to be capable of being considerably
enlarged.
In 1881. however, before the road had
been developed to any great extent. 1t was
| found to be necessary to raise more funds
| than the stock of the company had pro-
vided. and to this end it was determined to
| acquire $1G00,000 by the issue of gold cou-
pom bonds in denominations running from
| 5000 to 81 0Q0 each. to be secured by a first
| mortgage upon the assets of the company,
| and while several hundred thousand dol
| lars worth of these bonds were at once
taken up by local capitalists. majority OF
| the S941 600 sold was subscribed for by in
| vestors of the city of Boston.
Road In Operation.
! Shortly after this Mr. John Van Riswick
| was elected president and the road was
| actually constructed and put in operation
| to within about ten miles of the proposed
| terminus at Point Lookout, but, owing to
| alleged rismanagement on the part of
| some of the subemployes and of difficulty
| in the procurement of proper legislation,
the road again became involved in diff
| Guilty and failure was had upon the in
terest coupons of the first mortgage bonds
as they became due and Il foreclosure Suit
was said to be threatening.
1t was decided in 1883 by q ajOrity of
| the bGndholders, as well as stockholders.
that in order to carry into effect the pur-
pose of protecting the interests of all con-
cerned and rendering the property avail
able for the payment of the debts of the
company ii was best to place the entire
corporation in the hands of committee or
trustees: in pursuance Of which Benjamin
T. Brooks, Franklin E. Gregory, Edward
j. Brown. Tallmadge A. Lambert and j. o.
! Weatherby Were appointed a committee
with authority TO take such measures ard
60 Sucn acts as tney deemed proper Tor
the protection of all parties interested in
the road, and on which account the agree
ment then entered into assigned and trans
ferred to the members of the COM
mttee all the bonds with full power
in them to surrender the same for
other securities, and otherwise dispose
OF them If they were their own prop
eTty, the bondhCders agreeing to pay on
demand such sums of money, not exceeding
. per cent of the amount of bonds held by
each holder. might from time to time
be called by the committee. All the men,
bers of the committee, it is understood,
were non-resdents of this District and rep
reSentatives of the holdings of the Boston
contingent, excepting Mr.. Lambert, who
was delegated to represent the interests of
the Washington capitalists.
Compliance With Charter.
Acting under the authority conferred by
the agreement referred to. the committee,
it is said, has from 1883 up to the passage
of the recent deed managed and opera ated
the read. running cars required by the
charter. and from time to time endeavored
to obtain purchaser for the road in order
that a fair amount should be realized by
the original investors.
1t having been deemed eXpedient to
change the name of the company from the
old Southern Maryland to the Washington
and Potomac Railroad Company, the COM
mittee in May. 1900 having succeeded in
obtaining offer of purchase from certain
gentlemen who proposed, by the organZa-
ton Of a new company to take the fran
chiseS held by the committee and complete
and operate the old Southern Maryland
read, applied to the circuit court of the
United States for the district of Maryland,
sitting at Baltimore, for the privilege of
making the sale as desired, which authority
by Decree dated May 22. 1900, was granted
to 1t. In pursuance thereof, and after
due advertisement. the property and fran
chises Of the road were offered for sale at
public auction and bid in. on behalf of the
committee. for the nominal sum of 100000.
Finally Consummnted.
Subsequently, upon the details of the sale
and the legal points being adjusted In the
Baltimore courts by Attorney John P. Poe
OF that city, and Attorneys Wilton ]. Lam
bert and d. W. Baker Of this city. repre-
senting all the interests involved, the trans
fer was finally cOnsummated and the pur-
chase money, it is understood, paid to the
credit of the committee, the gentlemen who
had arranged for the purchase of the road
having in the meantime formed a company
known as the Washington. Potomac and
| Chesapeake Railroad Company which has
now in fact succeeded to the rights, prop
erty and franchises of the Southern Mary
land and its nominal successor. the Wash
ington and Potomac Railroad Company
1t is understood that the case has been
referred at the instance of the attorneys
conducting the case. to James w. McElrsy
master in chancery at Baltimore. for the
purpose of taking testimony and stating the
account of the committee, and the proper
distribution of the balance of the fund that
may remain in hand for that purpose.
What you pay for extracts Is important.
but what you get for your money Is ten
times more important. Burnett's Vanilla
costs more because 1t Is worth mere-Advt.