The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1909-10-29

Baltimore, Nd, Oct. 28.-Judge
Morris, of the United States Cir
cult Court for the State of Mary
land, to-day appointed George T.
Bishop, of Cleveland, Ohio, and
George Weems Williams, of Balti-
more, receivers for the Washington.
Baltimore and Annapolis Electric
Railway Company. Mr.. Bishop is
president and Mr.. Williams is cOun-
sci for the company. They will op-
crate the property under the direc-
ton of the court without any
change in It's schedule and service.
The application FOR the receivership
was made by George A. Craig. Of Toledo
Ohio, a stockhoIder and creditor, through
his attorneys. Messrs Taylor. Keech.
Wright and Lord. The proceedings We're
not resisted by the officers and others in
terested in the property.
Capitalized Mt S6.OOO,O 900.
The washington Baltimore and An
napolis Company is capitalized al $780,
600. There are more than 90 stockhold-
ers, the majority OF whom are residents
OF Cleveland. \ number Of local cap
italists are also interested. The road has
been in operation since April. 1905, and it's
business has been fairly good. over 1e,-
600 passengers We're carried the first year
and the number has steadily increased.
II was stated last night that the road
has always been able to pay is operating
expenses in full. but has not earned its
fixed charges: hence. the application for
the recelvership.
There are now twenty or the large pas
senger cars IN operation. but there Is
soon to be a general change IN the equip
ment, thrty-four smaller cars taking the
place OF those now in service. The first
delivery OF the new cars will be made in
few days. and Il Is expected that all
OF them will be in operation within
niLety days.
MIR. Bishop Makes Statement
President Bishop. who is now in this
city, last night authorized the following
statement:
Tie reccivcrshiD for the Washington Baltimore
and Annapolis Electric Railway Company was to-
day decided br the officers of the company TO be
necessary fer the lrotcctou Of the security holders
upou II becoming apparent that all the recon
sIrcti0n changes. made necessary By the adoption
of the direct current power system and the acquisi-
ton of new suitable for use I'm the streets of
Washington. would not he completed as to en-
able the company 20 operate its cars in Washing
ton by November Is as bad been expected. and
relied upon by the company IN making plans TO
care Tor its obligations.
Il seems probable that al of said changes
cannot be completed before February l5 1910
owing - delays which the officers Of the company
aud the several contractors. doing the work were
unable 90 foree-e. considerable portion Of the
cost ot such changes has necessarily been paid by
the company from its current earnings. necesSitat-
ing delay IN the payment Of pressing accounts
which would otherwise have been made from the
earnings
Revenues VIII BE Ample.
It has been believed up 20 this time. and in our
opinion such belief has been justified that the
decreased operating expenses and increased eaFniugl
which will result from the changes. would have
furnished sufficient funds 10 provide for the com
pauys urgent and unusual requirements
Accounts which the company Is unable to Tay are
pressing. and under the plan decided upon these
can be taken cara Of from earnings. which would
not be sufficient 10 pay the May l. 1899 interest
on FIRST and second mortgage bonds, now in de-
fault and also within another s1 months the in
tercst on the same bonds which viii he due N0yem-
Der T. 1909 a total Of $4,000.
Under the recelvership which should not be Of
long duration. all the reconstruction work can be
continued and the c1st thereof which has not
already been paid can be provided for.
A plan Tor funding the accrued and accruing in
tcrrst aud other indebtedness VIII be soon sub
mtted TO the security holders. but it is the belief
Of the officers of the company that no drastic
action will be necessary.