The Washington herald., 1912-10-01
Capital Financiers Explain Plan of
Holding Gorporation-How Far
1t Has Progressed.
NOT INIMICAL TO LOCAL
INTERESTS, THEY DECLARE
Work on Proposition Has Been Go.
ing on for Two Years.
Not Stock Scheme.


street railway and electric lighting prop.
critics in Virginia, Washington, and
Maryland under the control and manage
ment Of the Maryiand-Virginia Railway
Company, a Herald reporter yesterday
had conversations with several local
fnanciers interested in the project. Most
of the men approached talked freely
about the corporation, its objects. and
what II was hoped to accomplish. Each
of them declared there was no mystery,
nothing hidden, nothing sinister. and
nothing inimical to the future develop
ment of Washington in the enterprise.
1t was declared that the big holding
corporation was devised. promoted. and
put on its feet by the same financiers
who few years ago bought control of
the. Washington Railway and Electric
Company. wrested it from foreign con-
troll. instilled economical management,
and put II in the way of improving the
service and paying dividends. The new
holding company was at first organized
and chartered by these local capitalists
before they associated with themselves
certain interests on the outside with
capital to spare for the project.
Are Security Owners.
These men who formed the holding cor
poration are owners of securities in the
properties represented, and they vehe-
mently deny that there will be any at
tempt to steal anything or any purpose
to overload existing properties unduly
with a load of securities which will
swamp the revenues for years to come.
The projectors of the holding corpora
ton say that with the economies to be
introduced. the extensions of service con-
templated, and the financing and refund
ing scheme worked out for the railway
and lighting properties involved that the
revenues will be ample to pay all fixed
charges and leave a comfortable surplus
with which TO pay dividends. They say
the financial end of the project has been
figured down TO the last sou, and that
in the judgment OF the ablest financiers
of Washington and those of Philadelphia
and New York who are parties to the
corporation the project is on a safe, sane.
and enduring foundation.
To a man these financiers yesterday
declared that the fundamental purpose
of the corporation was to refnance the
Washington-virginia Railway Com
pany. the lighting plants in nearby Vir-
ginia, the Washington Railway and Elec-
tric Company and its allied interests.
Something had to be done to provide
money to pay certain bonds of these
companies to provide for necessary ex-
tensions and equipment in order to meet
the demands OF service and to provide
cash for the exigencies of a business
larger than any other enterprise in the
city of Washington.
Hfbbs Father of Plan.
William B. Hibbs, who several years
ago engineered the deal by which the
Railway and Electric Com
pany was purchased by local capitalists,
and has since been managed by them,
may be called the father of the plan
now emerging into view as the Mary
land-Virg1nia Railway Company. He said
yesterday that the plan was devised
about two years ago and began to be
worked out by obtaining the first charter
of the company in 1911. BY slow de-
grees the project has been taking shape
since that time. and some of the final
steps in the enterprise are about ready
for elimination.
Mr.. Hibbs said a good deal that. had
been published in the newspapers about
the company was very wide of the mark.
He said the holding company was
formed in the first instance to take care
of the Indebtedness and growth of the
Railway and Electric Com
pany. Then, he said. the Washington
company and the properties now in
~'ANSo III lllt w SlIlld fldll-
way Company came to have inter-
ests in common. and that in perfecting
the plan the Virginia properties had
come into the lead by way of actual
Mr.. Hibbs stated that a
perfect understanding exists between the
several boards OF directors in regard to
the plans and that everything is mov-
ing along toward the fulfllment of the
original purpose.
This is the union of the Virginia and
railway and lighting proper
ties under one management with conse-
luent economy and resources with which
10 take care Of the finances and the ex-
tension and improvement of the services.
Mr.. Hibbs said there is and never was
any other object in view.
Union Next Step.
When II came to working out the de-
tails of the corporation it was suggested
hat it be made big enough to cover all
the street railway and lighting plants of
and vicinity. This was done,
and the charter provides for a minimum
and maximum capitalization to be issued
and put out as circumstances may re-
luire. Mr.. Hibbs said that the newspa-
pers seemed to have hit upon the maxi
mum of Capitalization and authority of