The Washington herald., 1912-11-03
Local Financial Matters.
~ I. A. FLENIN6.

~ I. A. FLENIN6.
1t is not at all likely that any injunc
ton will lie against the plans and pur
poses Of the Maryland-virginia Com
pany, which on Wednesday next will b
succeeded by the Washington Utilities
Company.
From the start of the entire so-callet
Financing plan" to date the tern
merger has been used inadvisedly.
1t Is not the intention to destroy tn
identity. the corporate existence OF an!
corporation, except in dropping the nam'
of the Maryland Virginia Railway Com
pany. nor yet to merge. In the meaning
of the word. any Of the utilities OF tn'
city.
Barter and sale are unrestricted save
in the case where the parties thereto are
lacking in mentality.
Any man holding stock In corpora
tion has o right to sell what ne aes
Any one can buy who has the price
There IL no law in contravention.
When the assets Of the Maryland-Sr-
ginia Railway Company are transferred
to the Washington Utilities Company the
latter will have in its treasury at least
60 per cent of the capital stock Of the
Washington Railway and Electric COM
pany and a large amount OF the STOCK
of the on-Virginia Railway
Company.
II is understood that the underwriting
of the entire capitalization OF the COM
pany has been arranged for. William
Soloman & Co. admit their connection.
and other financial houses Of Philadei-
phfa and New York have offered any
assistance necessary
Other utilities have not been mentioned
as desired or wished for. save on certain
conditions. The vehicle is at hand II the
other corporations want to come IN AT
price satisfactory to controlling inter-
ests.
Once upon a time the City and Suburban
Railway Company was absorbed by the
Washington Railway and Electric Com
pany 1t had and has a capital stock OF
N,1Jc 0Oo and the purchasing corporation
acquired all but $162.450. par value. $So
a share Of this stock.
Owners of these S.ee59 shares stood pat;
they did not sell to the railway company
To-day the City and Suburban Railway
Company, the G Street line Of the Wash
ington Railway and Electric Company.
IS a rather prosperous link in the system.
The Washington Railway and Electric
Company will buy any stock offered, but
the bid price is so share. 1t IS a
H54 miles system and ought to be worth
much more than so share.
supposinE. simply supposing that a
number of shareholders Of Washington
Railway and Electric Company refuse to
sturn in their stock to the Washington
Utilities Company. when the terms are
offered In due time the stock may be
more or less neglected on the exchange
Perhaps the bid price may be followed
to sag, 1t certainly would not be boosted
10 higher lewis.
1t is not possible that the story OF
City and Suburban might be repeated.
This is not inspired by any man or In
terest whatever-it Is a statement OF
fact-nothing else, with a surmise,
little specializing on possibilities.
But the minority shareholders would
have rights. decided and positive rights,
Just as the minority shareholders OF the
City and Suburban Railway Company
have. Any corporation attorney would
indicate these rights and enforce them
IL so instructed.
In carrying out their proposed holding
company plans. the Washington Utilities
Company is simply going through a sim
liar operation to that Of more than a
decade ago by the Washington Railway
and Electric Company, when II became
the holding company for many local
traction lines.
Here is a condensed history Of the
Washington Railway and Electric Com
pany:
Incorporated as the Washington and
Great Falls Electric Railway Company.
July 29, 1892. by special act of Congress:
name changed to Washington Railway
and Electric Company on February ].
1902. On February 4. 1902. purchased the
assets Of the Washington Traction and
Electric Company, which were sold under
foreclosure on November "a, 1901, in pm
suance of a plan for the reorganization
of that company's finances.
This plan of reorganization IS dated
August 1. 1901. 1t provided for the fore
closure of the collateral trust ~ per cent
mortgage of the Washington Traction
and Electric Company and the formation
of a new company. with authority TO
issue (a) 81. 900 4 per cent fifty-year
gold bonds: Ob) ss.50O.0o0 per cent pre-
ferred stock. cumulative after Jun" !.
1904: (c) 36.5oo0Oo common stock. Par
value of stocks, $100.
Holders of old collateral trust bonds
received for each s., loo bond: $3.50 in new
4 per cent bonds $3.50 in new perferred
stock and 500 In new common stock.
Each 500 share of old stock. on pay
ments of 50 per share. received - in new
perferred stock and $50 in new common
stock.
This company also consolidated the
United States Electric Lighting Company
and the Potomac Electric Power Com
pany.
On February I. 1s0e. the properties OF
the Metropolitan Railway Company and
the Columbia Railway Company were ac-
puired by deed in fee subject to their
mortgage debt In addition to the mile
age actually owned by this company,
ership other street railroads in the Dis
triot Of Columbia and State Of Maryland
with an aggregate track mileage Of 1ol.09
miles, making the total track mileage Of
the system l5S.67 miles. It also controls
tho Potomac Electric Power Company,
the only electric light and power COM |
pany in Washington. and the Great |
Falls Power Company, which has un.
developed water power rights at the !
Great Falls Of the Potomac River.
The companies controlled through stock |
ownership follow:
Anacostia and Potomac; Brightwood. |
City. and Suburban; Georgetown and |
Tennallytown: Washington and Glen |
Echo: Washington and Rockville: WASH |
ington, Woodside, and Forest Glen Rail- |
way and Electric Power Company: Po-
tomac Electric Power Company. and |
Great Falls Power Company.
Total capital of the various corpora
tions absorbed, Ss.SSs.35o. the company |
owning all but $s7s.7 $50 Of this stock. Some |
Of the Great Falls stock has been sold, |
q nd the Potomac Electric canita lixn tfou