Evening journal., 1905-06-20
NJ 'DERM0TT HAD
HIS OWN TROUBLE
As President He Gave
Orders to Himself AS
Receiver
WASHINGTON RAILWAY MIl-UP
Ry WIIIam WoIH smlth.

Washington, June 2O-Representa-
tive McDermott, of New Jersey. has
recently had some troubles Of an un-
usual character In addition to the
distinction of being the only Demo-
cratic member Of Congress from New
Jersey Mr.. McDermott is at the head
of one of Washington's two street
railway systems. Some years ago
New York capitalists secured control
Of all the lines in the city. except
those of the Capital Traction Com
pany' together with the electric light
ing companies and undertook 10 con-
solldate the interests thus acquired
several Of these properties were hank
rupt and only two of the street car
llnes were paying dividends. Under
the new management roadbeds were
rebuilt and lines extended, millions
spent IN equipment and improvements
ana a large suburban traffic develop
eu' IN this process Mr. McDermott as
president of some of the wealthy lines.
agreed with himself. as receiver for
some Of the bankrupt lines, To issue
transfers from one line to the other.
Ihe minority stockholders of the
paying lines took exception to this and
other actions of the president-receiver
claiming that he was attempting to
build up the bankrupt roads al their
eNpense. They We're finally paclfed
ana all went smoothly until recently.
when a handful OF minority stockhold-
ers OF one Of the bankrupt roads went
INTO court and complained the transfer
system was injuring them, aud secured
IAN injunction against the exchange.
Considering that under the manage
ment of Receiver McDermott and his
associates these roads had been re-
built and extended and the traffic in
creased until they are almost on the
point OF paying a dividend this aotiol
on the part of the minority stockhold-
ers was unexpected, to say the least.
However in obedience to the order of
the court Receiver McDermott noti-
ned President MoDermott the deal was
of and on June I transfers between
the roads affected were abolished.
AZ this point the citizen taxpayer
took hand, Several thousand per-
sons having acquired suburban homes
on the strength of the improved serv-
ice and the transfer system established
by the president-reeeiver, roared with
anger when they heard they would
have TO pay two fares where they for
merly paid but one, and their counsel
succeeded I'm convincing the judge that
the patrons of the bankrupt roads had
rights which even the minority stock
holders should respect. The operation
lof the injunction was therefore post
lponed. This led TO a peculiar state of
lafairs. In obedience to the first order
OF the court Receiver McDermott di-
lrected that no more transfers from
president McDermotts lines should be
accepted,
He represented to President McDer-
lmott, however that it would work a
lgreat hardship on his patrons to be de-
lprived of their transfers and so moved
was President McDermott by the
statements of Receiver McDermott that
he directed that his lines should re-
lceive transfers from the bankrupt
lroads, but should not issue transfers
Ito them. Incidentally. new transfers
were ordered printed and President
Receiver McDermott left town with
the consciousness Of a public duty
lwell performed. In consequence of
II Ahtct dlAdAlbtNltllst Wntl the hfNel
lsuspending the injunction was issued
on the day II should have gone into
force, the conductors had new style
transfers with no place TO punch and
no orders to punch.
Then rose the indignant citizen in his
might and shook the evening paper
with the announcement Of the victory
lin the face OF the recalcitrant con-
ductor and pointing to the announce
lment OF the decision, demanded a
transfer or one that should be accept
ed. Jaw g'wanl" replied the con-
lductors. "We'se amt runnin under
the judge. McDermotts runnin' this
line and he says no transfers go
lSee2" Whereupon the citizen tax
payer paid two fares or walked.
Telephone and telegraph, however
placed the roads I'm connection with
the receiver and the president who
happened to be IN the same place, and
now everything is running smoothly
as the court has indefinitely suspend
]