Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-05-21
ACTION MISCONSTRUED
ALLEGATION REGARDING CITY
AND SUBURBAN TRANSFERS.
Statement Made by Interested Citizen
Appeal to Be Made-Rev-
ocation of Order.

1t Is alleged that informa ton in the
possession of the general public regard
Ing the proposed fight by the amalgamated
citizens associations for the revocation of
the order of Judge Anderson by which the
receiver of the City and Suburban Railway
was forbidden, after the 1st of June, to
issue or receive transfers to or from the
other city railway lines within the District
of Columbia has been of the most unre-
liable character. 1t has been said that per-
haps not hundred of the inhabitants of
Washington knew exactly what the row
was about, and those who did not know
and who consequently found fault with
the action of Judge Anderson in his order
were not, therefore, to be blamed for a
misconstruction of the latter.
According to prominent member of the
lexington Citizens Association the trouble
began with the application of the minority
faction of the stockholders in appearing
before Judge Anderson and requesting the
appointment of coreceiver with Receiver
Allan A. McDermott. Mr.. McDermott op-
posed this action and supported his oppo-
sitfon by showing that as president of the
other railway lines In the District he was
in a position to obtain information that
would be Of advantage to the City and
Suburban, a power that he would lose if
coreceiver were appointed, since then the
opposing roads would decline to place him
in possession of the information necessary
to the successful operation of the City
and Suburban.
1t was argued that If a coreceiver were
appointed the expenses of the road would be
increased at least six times, and that 1t
had long been known that the longer
haul of a road the greater its profit from
the many passengers it carried. He said
that the free transfer system was calcu-
lated to build up the suburban portions
of the city, and that its discontinuance
would operate to the disadvantage of the
sections Disseminated against. He told
however, that he was entirely willing to
discontinue the transfer system If an order
of the court called upon him to do so, but
spoke eloquently against such action. Judge
Anderson, notwithstanding this opposition
issued the order for a discontinuance of
the transfer system after May 81.
What the Books Showed.
The books of the company January 81.
1905, showed that 1t had in stock ST. 75O 900;
In bonds the same amount, and a floating
debt Of s1S1, so, and that Its expenses
were larger than its income. This was
the reason for a request for a coreceiver
by the minority of the stockholders. The
majority were not represented at the call
of the case, and Judge Anderson had no
recourse, but to issue what is known as a
consent order, this being done at the
request of the stockholders when no op-
position was presented. The majority was
represented by the attorney of the receiver
only.
The member of the lexington Citizens
Association, who talked on the matter with
q representative Of The Star today said
that 1t is an axiom all over the world that
there are better profits in long rides than
in short ones, and that 1t was mistake of
the faction to ask for a receiver and the
forbiddance of the transfer system as a
means to attain higher rate of income on
the investment. Congress, he said, has sew
eral times recognized this feature of operat-
ing railroads in Washington, when, in one
case which he pointed out, that body en-
acted legislation providing free transfers
between the Capital Traction Company, the
Capital Railway Company and the Metro
politan Railway Company. That transfer
system still exists. and has been found to
be of greater benefit to the roads than If
the legislation had not been enacted.
The Case Investigated.
Following the issuance of the order of
Judge Anderson as investigation into the
matter was made by William G.. Henderson.
president of the lexington Citizens Asso-
citation, the result of which he reported to
the association at a later meeting. He was
then authorized by the executive committee
of the association to appoint a special COM
mittee, himself to be one member compos-
ed of five members of the association to
make further investigation of the order and
the incidents leading up to It, He appoint-
ed as his associates: Irwin B. Linton. w. J..
Hughes. Howard Boyd and A. r. Serven,
all attorneys and all citizens residing along
the line of the City and Suburban Railway
Company. They made the investigation,
and last Tuesday reported and recommend
ed the retainment OF attorneys to contest
the order of Judge Anderson and to take
s,,ch further action as thew deemed well