Evening star., 1912-09-15
PLANS OF BIG PACT
Organization and Purpose of
$30,0OO,0O0 Company.
UTILITIES UNDER ONE HEAD
Seeks Control of District Gas, Rail-
ways and Electric Corporations.
ISSUE OF $5,ooo,ooo OF STOCK
Universal Transfers Among Street
Car Companies Assured-Reduc-
ton Of Running Expenses.
UTILITIES UNDER ONE HEAD
ISSUE OF $5,ooo,ooo OF STOCK

Details of the organization and pur-
poses OF the big thirty million dollar
| OBSERVATION-DISCLOSURES Company, made
public last night through an interview
with William B. Hibbs at his summer
home in Leesburg. Va, shows that the
founders of the corporation have the
one definite object in mind of getting
actual control OF every public utility
in the District of Columbia, especially
] street railroads This contemplates
the management under one executive
head of the street railways and of gas
ment of universal transfers and the
saving which would come from the
combining of several managing de-
partments into one.
The Maryland Virginia Company
| through its members and their friends,
| is declared to have a controlling inter-
| est in the Washington Railway and
| Electric Company and its affiliated
companies; the Potomac Electric Power
Company and the Washing ton Virginia
Company, whose cars operate into Vfr-
ginia across the Highway bridge. The
| consolidation of these companies, 1t is
declared, could therefore be accom-
plished at any time.
| Ownership of stock in the Capital
Traction Company and the Washington
Gas Light Company by members in the
big corporation does not at present
amount to control of those concerns.
but it is claimed that actual ownership
and control of stock in practically all
other utilities puts the new corporation
| in command. Five million dollars
worth of the new corporations stock is
already issued. 1t also holds much
District, and has been saving the divi-
dends from that ownership to create
surplus fund for extensions.
Charter Obtained in Richmond.
! The Maryland Virginia Company was
| granted a charter with dummy" in
corporators two years ago in Richmond,
Va, under the laws of Virginia, and
originally was capitalized at $5.00O.OOO.
This amount was later increased to
s3O,OOO,OOO. The actual amount of stock
which has been issued and sold amounts
| to about $5,000,O00.
! The present temporary organization
has Norman Gray of Canton, n. j..
president of a trust company there, as
president; F. H. Treat. president Of the
Was Virginia Company, as vice
president; w. w. Spaid, partner of W..
b. Hibbs. as treasurer, and Gardner
Booth. attorney. of Alexandria, Va, sec
retary. Mr.. Booth drew up the. papers OF
incorporation.
/ In TALKING Oh Ile OPcTdlIOH VI 1oSdi
street railroads under the control or
Ownership Of one corporation. William
B. Hibbs said last night that the new
organization intended to meet the de-
mand for universal transfers, and in
the present state of ownership this
would seem to be an easy matter. While
the ACKNOWLEDGEMENTS corporation does
| not own q controlling interest In the
Capital Traction Company. those inter-
ested in the new company profess that
| this is not matter which will inter-
fere with their plans. They are con-
fdent that cheaper and more efficient
control and one operation of the COM
panies taken into that merger.
Scope Of Company's Powers.
| The Virginia charter under which the
IMaryland-VirginiaC Corporation exists is a
broad one. allowing the company to buy,
sell and own stocks, to control and oper-
ate street railways, railroads, electric
light companies, gaslight companies. and
| to own real estate; in short, to have the
widest possible field for the operation and
control of large system OF utilities.
Par value of the stock in the corporation
| is $1OO. 1t is not listed, and no trading in
| the stock on any market has been record
| ed, those interested say, as all the shares
asked for have not been allotted. 1t is
planned to exchange shares OF the new
/
| listing corporations to be taken into the
new fold, on a valuation plan to be work.
ed out. A financial firm Of Paris, France.
has made an offer to underWrite the
Maryland Virginia Corporation, and to
take up all shares from present owners
| in local railways and utilities who may
not want to enter the new company on
| the exchange of stock plan.
To own the public utilities of the Dis
trict of Columbia and to operate them
r,;th head f.
| ing department is the aim Of the corpora
| ton, not merely to own a controlling
stock interest. The organizers OF the cor
poration have a definite objective point,
namely, to make the big savings which
| will be possible when all the lines are in
one name ana the expenses of several diff
ferent managements are reduced to one
large department.
Opportunity to Other Concerns.
The hackers of the new company admit
the washington Gas Light Company and
the Capital Traction Company are still
outside of the fold. No effort will be
made to gain control of them, it is un-
derstood, but an opportunity has been
extended and is still open for them to get
into the new concern. Public service cor
porations in the District of Columbia now
represent about $4,000, 600 In various Sc
curities, and are all susceptible of absorp
tion into the large concern.
The entire scope of the the Maryland
Virginia Corporation, its organizers say.
has been discussed with the Commits
sioners of the District of Columbia, with
Senator Gallinger, chairman of the Sem
ate District committee, and with various
members Of the House committee
on the District of Columbia. with a view
to bringing to light any flaws in the plan
or any weak points which could be made
the subject of attack later.
The present active members of the cor
poration declare that 1t will make little
difference whether or not the present bill
for the creation Of public utilities COM
mission Is passed. They say the uni
versal transfer Is the ultimate object of