The Washington herald., 1912-09-15
UTILITIES
MAY Be COMBINED
Maryland and Virginia Railroad
Company Said to Have Been
Organized for Amalgamation.
ALL STREET CAR AND LIGHTING
CORPORATIONS CONCERNED
Prominent Local Brokers Admit
Plans Of Company-$6o, 900, 900
Probable Capitalization.

Long current rumors of the amalgama-
ton of all the public utilities corpora
tions of the District yesterday gathered
around a seemingly authoritative report
that the recent organization of the Mary
land and Virginia Railroad Company,
was accomplished for the purpose or
consolidating the street railway, gas and
electric light and power companies
The report created surprise, despite the
fact that It followed rumors to the same
effect, for circumstances yesterday
seemed to indicate an early achievement
OF the plan. 1t was said that the devei-
opment OF the Maryland and Virginia
Railroad Company. which is capitalized
at s30.0oo.00o. would be followed closely
by the formation OF the Washington Sc
curities Company, tc serve as holding
cooperation for the several securities.
Organized to Consolidate Interests.
w. B. Hibbs. who has long been an
important factor In the public utilities
securities on the Washington Stock
Exchange, said yesterday that the
Maryland and Virginia Railroad Com
pany had been organized to accomplish
the consolidation of the street railway
companies, but that the company had
not gotten as far as the gas and electric
light and power companies in Its progress
toward amalgamation OF all the public
utility corporations.
That the Maryland and Virginia COM
pany and its securities company contem-
plate taking over the gas and electric
companies is regarded as certain.
The Potomac Electric Light and Power
Company, in fact, is a subordinate COM
pany to the Washington Railway and
Electric Company. At the same time.
the Washington Gaslight Company and
the Georgetown Gas Company. between
which there have been varying differ
ences, are said to have been approach
ing an agreement that would lead to
consolidation.
Congress Would Not Object.
Legal obstacles in the way OF a con-
solidation would not prove an effective
barrier. 1t is believed. Congress, which
could provide a very considerable oppo-
sition, probably would welcome the plan,
local financiers said yesterday.
A saving Of expense. greater conven-
ience in handling business. better control,
and closer supervision are advantages
which a union Of all the corporations
would afford, it is claimed, and Congress.
1t is believed. would recognize the ad-
vantages and do whatever should be nee
essary for the coalition.
Other Washingtonians than Mr.. Hibbs
said to be interested are Clarence F.
Norment. George King. Charles ]. Bell.
and Clarence P. King. About 5000 900 of
the Maryland and Virginia Railroad
Company stock has been sold. Washing
ton and Philadelphia men being the pres
ent holders.
The company has acquired a large
block OF the common and some of the
preferred stock Of the Washington Rail-
way and Electric Company, and smaller
holdings in the Great Falls and Mount
Vernon lines.
Responsible for Advances.
The activity OF the Maryland and vir-
ginia company in the market is said to
have been responsible for the sensa-
tional advances in the stock Of the
Washington Railway and Electric Com
pany-
Disposition of more of its own stock
is expected to enable the Maryland and
Virginia company to acquire control Of
other corporations. and thus make the
merger possible. A capitalization greater
than $50, OOO 900 would be needed to ac-
quire control of all the public utility cor
porations of the District, 1t is claimed.
however. and it is said that the Mary
land and Virginia company is therefore
Nothing to Prevent Plan.
It is generally conceded that there Is
in the charters of the compa- |
MES to prevent the carrying out OF the |
alleged plan. The consensus of opinion |
IS that a common ownership of a ma
iority of the stock held by the various |
public service corporations eventually |
would lead to consolidation Of the |
The capital stock of the public utili. |
les corporations follows:
Capital Traction Company. si2 0O0. 900; |
Railway and Electric Com /
pany, ss.5ooOoO preferred. ss,5oo.ooo COM
mon; Washington Gaslight Company.
{, $4,000.
Bond issues are as follows: Capital /
Traction IS, $3.50. 600; Washington Gas
light IS, s2.sso, 900; Washington Rail-
way Is, so. .3s3. 900; Potomac Electric SIS,
!. 700 900; Potomac Consolidated IS. S5.o2s,-
100; Anacostia and Potomac, s2517,ooo
Anacostia and Potomac Guarantee, s4s2,-
90: Metropolitan Street Railway, 81, S50.-
90; City and Suburban. n.75o,ooo; Colum-
,ia Railway, s1,ooo.00o.