The Washington times., 1904-10-24
MCDERMOTTS BIG OFFER TO GIVE CAR LINE CREATES STIR


Continued From First PageJ
as "a so-caued gift and try 10 carry ms
staggering DEBT would inevitably mean
failure ana SO Mr. McDeruo.L Is per
tecuy SAFE I'D making the oner. .-,--
'Alr AcDermott says also ne tiLlli-7
the road should be thrown into tllS
hands OF a receiver and De cut on
from assistance from the naFeht com
paLy- Possibly. tnaT Is I'M eau -4i
tended 10 inumidate the BrlBhtWoyI
people. Let Us look into the nosslDlll-
ties and see gust what can DC done. "a
If i buy house that IS EAOIlsaBea
beyond all value 4 have made mistake
that is my own loss and no one else
affair. / cannot go down TO the Tax OI-
nee and MAKE my tale of woe an excuse
TOR not paying the tax assessed py law
III / failed TO make payment tnc properly
would be sold Tor taxes ana 4 "otLd
lose not only what i mad PUT INTO inc
bad investment but also what / might
nave made by holding the property and
selling IL Tor a better inquire imam was
brought by the tax sale.
Just Like Taxes.
Just as the payment of taxes is an
obligation 10 the municipality. so the
proper conveyance OF passengers is the
duty a railway owes 10 the municipal
ity in exchange for the grant Of the
franchise. The power that gave tho
franchise can also take IL away. IL the
BrIghtwoOd line went into the hands OF
a receiver and proper service was re-
fused, Congress could revoke the fran
chise, order the company TO remove its
rails ana equipment and grant a new
franchise TO some unencumDered com
pauy VINO would gladly undertake sucl
q profitable investment. II this should
be done the Washington Railway anC
Electric Company would lose what has
been sunk into the Brightwood road and
throw away what is really valuabI
franchise.
It's Blanket Charter.
1T is definitely established that the
Washington Railway and Electric Com
pany received from Congress a charter
which gave them the power 10 merge all
Of the roads mentioned IN the bill grant
ing the charter. This was not done. AS
Mr.. McDermott admits, only three roads
were merged and two of them were
among the most profitable in the city
The third was necessary TO the merger
because the terms of its charter allow ed
II 20 absorb other lines which was not
the case with the otner two lines OF the
consolidation.
1T would seem that no provision was
made 10 compel the Washington Rail-
way and Electric Company TO merge all
OF the lines mentioned in the bill. The
situation is therefore just this. Any
lines that are profitable can be merged
intu the system while those which do
not pay can be dropped with the loss
OF what was invested in them. This sit
uaLlOu surely could not have Deeu clear
IS understood when the powers they en-
JOY were given them by Congress.
Management a Secret,
The exact method of handling the va
rious Ines and the details incident TO it
are kLt wn only 10 the men on the in
side To a man up a tree 1t would
seem that any profits accruing 10 the
lines outside the merger would 90 10 the
central company. On the other hand
the entire association of roads cannot
be considered a legal entity Therefore.
~ line Ike the City and Suburban
should Kill q hundred passengers q u-y
Tor several weeks and claims for dam
ages should occasion great many
suits II seems 10 me that the
Washington Railway and Electric Com
paIlE could throw the road away, and
il IL was already heavily in debt there
would be nothing TO attach IN satisfac-
ton OF judgments. and certainly there
would be no way Of getting al the parent
company without instituting proceedings
IN law that might develop the extent OF
their responsibility.
Washington and W0odside
For instance. there is the Washing
ton and Woodside Railway Company
OstensIbly il is an independent organi-
it now. Suppose you get a judgment
There is nO office anywhere on the line
and no one 10 serve notice on. Possibly
the cash in the conductors pockets
could be attached, OF some Of the rolling
stock OF the roau But as far as the
pubic is concerned il is road lost in
the woods without anyone 10 appear ia
the vicinity 20 be responsible for its
management.
.In the statement Ina yesterdays Times
the Washington Railway and Electric
Company IS admittedly ia a most pros
porous condition. The present situation
shows profitable returns on the invest
men and the outlook is even more
promising. This prosperity IS possible
because OF their enjoyment or the fran
chise they secured iu the bin permit
ting them 10 merge the inside lines. Be
cause the suburban lines do not pay IS
hardly sufficient for abandoning them
10 their fate in the face OF the impress
sion that was gained when the company
they succeeded secured the charter COW
eriug inside and suburban roads. IL
was certainly understood by the general
public that the syndicate was taking
up all of the roads and would make one
system or them regardless Of the pro-
portion 81 profit accruing from each
line
cit Is IN the power OF the Washington
Railway and Electric Company 10 make