The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-08-03
Street Railway Experts De-
clare Present System in
Richmond Cunlbrous
and Unwieldy.
COMMITTEE GIVES OUT
REORGANIZATION PLAN
Will Be Submitted To-day to
Holders of Various Stocks, Bonds
and Mortgages, With View to
Forming Corporation
and Terminating
Receivcrship.
~ LANS for the reorganization Of
the street railway and electric
power interests Of Richmond.
E.c.t b

HLA.Ss for the eorsaniza,ion Of
the street railway and electric |
power interests OF Richmond,
L Petersburg and vicinity, drawn
up by special committee rep-
resenting majority OF the securities
of the several companies now opcrat-
Ing here under joint receivership, |
Will be submitted to-day to the holders /
OF the various stocks, bonds and mort |
cages with a view to the formation |
OF new corporation. which will takc |
over all the properties. thus tcrmlna:-
Ing the recciverslip by a sale and the !
distribution OF the proceeds under the |
order OF the United States Court.
Plan Of Reorganization.
The scheme OF reorganization out
lined by the committee provides for
the protection OF the holders OF the ga
rIous classics of securities by the de-
posit OF all outstanding bonds. stocks |
and securities under q definite agree
pient and under the supervision OF The
committee on reorganization.
Tho ultimate plan contcmplatcs the
formation of a new company organized
under the laws of the State OF Hir-
Einia. with headquarters in Richmond
to take hold and operate all the prop
critics so acquired. II is proposed that
this company shall have an authorized
capital stock OF sl2 100000. with an au-
thcrized bond issue of si5.0oD00e EN-
pert electrical engineers who have ex-
arnined the properties with view to
determining their physical valuation
and their earning capacity under o.
combination such as Is proposed. agree
In recommending that all present fran
ellses be surrendered and that the
corporation, when fully organized. .sp-
ply to the city OF Richmond and the
city OF Petersburg for new blanket
franchises covering the whole electrical
properties operated by the new COM
pany. 1t Is held that this course will
best serve the interests. both of the
railroad company and OF the cities in
volved. The present franchises are
declared TO be cumberous and unwieidy.
working hardship In many particu-
lars on the companies, and at the same
time preventing Improvement and bet
terment of the service.
1t Is the opinion of the experts that
advisable notifications OF the exist
ing franchises could be made. espe-
caliy by extending the time limit, so
as to enable the companies to de-
vclop the properties in the future in q
way more likely to promote the growth
of the city. Reference is made in the
report OF the experts to the franchise
granted by the city in 1902 TO the
pany as a competing line. on which
but a small amount of construction
work has been done. The engineers
do not regard 1t as probable that this
line will ever be built, and state that
the threatened competition is not
worthy of very serious consideration
In regard to the agitation for mu-
nicipal street lighting plant in Rich
mond the experts state that this SER
vice has bcen furnished at rate Civ
ing so little profit that the loss OF the
business would not materially affect
the net earnings of the companies.
The water power rights on the James
River at Richmond arc reported to be
fully developed. while those on the
AppomattoX above Petersburg are oniS
partly utilized. and are capable OF u
large further development.
The water rights in the Rappahan-
mock at Fredericksburg. reported as
exceeding the power of the James ano
Appomattox combined and the Rlcn-
n;on.l-Ashland line, known as the Rich
mond and Chesapeake Bay Railroad
Company, are not involved IN ths
scheme Of reorganization, being inde-
nendent properties not connected Will
the recelvershp although generally
understood to be controlled by the
Gould interests. which predominatc u
the Virginia Passenger and Powel
Company.
Those Who Prepared Plan.
The committee on reorganization j!
nlesided over by Mr. Douglas Robin
son, Of New York, a brother-in-law g
President Roosevelt, and trustee 0
the Astor estate Other members Q
the committee on reorganization a,
Mr.. Frank Jay Gould, the largest sin
gle stockholder In the electrical prop
critics involved; Mr.. Percy NJ. Chandiat
of the banking firm of Chandler Bros
& Company OF philadelphia; Alr. Chas
S. whelen OF Townsend. Whelen
Company, philadelphia, bankers; MI
r. Lancaster Williams. representa-:
John L.. Williams 4 sons, of this Guy
organizers OF the Richmond Tractio,
Company, and Il, William Mittendor
g. Company Of Baltimore. and Mr. Frit
sitterding., of Richmond. the presiden
OF the Virginia Passenger and Powe
Company, when the various allied eloc
r trio interests were placed in the hand
of the receivers on July 16. 1904
Mr.. Henry W. Anderson, nf tho laN
firm Of Munford, Hunton. Williams
Anderson, of this city, has been coun
sci for tho reorganization committee
with Messrs, Carter. Ledyard d MI
burn, of New York, as consulting cou'
sci. The Bowling Green Trust con-
pany, of Now York. trustees Tor Ger
tain bonds. who brought the origina
action looking TO the receiversi,lp 9
the companies, Is named as the depns
itary. with whom all stock and othe
securities are to he deposited,
Judge A. l.. Iolladay, special mas
tor in the case, appointed by luds
ritnlund Waddlll, of tho United Stats
H.