Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-08-12
STOCK ISSUE 0. K.
Cannot Be GIVEN
Utilities Board Lacks Author
ity Over Baltimore and
Ocean City. 4
MUST WAIT TILL COURT
HAS RATIFIED THE SALE
When Application Il Renewed For.
feiture Of Charter May Be
Demanded.

The public utilities commission this
morning. after hearing on the appiica-
ton of the Baltimore and Ocean City
Railway Company OF Maryland, to issue
$l1S.3O0 worth OF stocks and bonds in
order to enable II to purchase the prop
erty Of the Baltimore and Washington
Transit Company. disposed Of the matter
for the time being by deciding that tho
Baltimore and Ocean City concern is .
foreign corporation and owns no prop
erty In the District over which the COM
missions Jurisdiction extends.
Announcement was maze by officials OF
tho companies that steps will be taken
Immediately to have the sale OF the prop
erty. which already has been approved by
the Maryland authorities, confirmed by
the District Of Columbia Supreme Court.
following which application for authority
to issue the s11s. 800 worth OF stocks and
bonds will be renewed.
In Hands Of Receiver.
The property in question consists Of
the traction line extending from the
l4th street terminus of the Capital
Traction Company to Takoma Park.
which some time ago went into the
ndnuS OF receiver.
1t was stated at the hearing this
morning that the sale of the line to
the Baltimore and Ocean City Company
Is planned AZ a reorganization OF this
utility service. and that III authority
to issue certificates of Indebtedness, In
order to effect satisfactory financial
arrangement, IL granted. the line Will
be Immediately improved and extended
through Takoma Park to the grounds
Of the Seventh-day Adventists' sani-
tarium.
William Mex. Clayton. who. as the
representative of the Federal on OF Citi-
xens' Associations. attended the nice. ne
was bitter In his denunciation T.! he
proposed financing scheme. The Balti-
has never been in operation. VIII lie the
line which II seeks to acquire ne de-
ciared. operates only two cars and has
failed to live UP to many Of its charter
obligations
Mr.. Clayton made II plain that II the
former corporation renews its application
for authority tc issue stocks and bonds.
District Supreme Court, tie federation
will petition the commission to revoke
the charter of the Baltimore and WASH
nop o in It's asssa
ure to live UP to Its charter require
mentS.
Present at Hearing.
Others who appeared at the hearing
were Henry w. Williams, an attorney
from Baltimore. and Charles Selden. jr..
president Of the Baltimore and Washing
ION Transit Company. Both declared that
The financing scheme In contemplation Is
bona dde one, adopted for the purpose
OF making possible q reorganization OF
Takoma Park. The service viii be put
In hrst-class condition and maintained
In Q satisfactory manner. II was promised.
II the stock issue plan 10 approved.
MI. Williams said that the plan has
the sanction of the Maryland courts and
the Maryland public utilities commission.
and that no difficulty is contemplated In
having the sale, which has been agreed
to by the COMPANIES. ratified by the Dis
In referring to the difficulties in oper-
ating the line experienced by the old
company. Mr.. Selden complained of the
high price which the corporation had
been required to pay for electric current.
who furnished the current, Mr.. Selden re-
plying that it was purchased from the
Potomac Electric Power Company.
Both Commissioner Siddons. who I'm the
absence of Engineer Commissioner Ha d.
ing presided as chairman. and Commits
sioner Newman asked q number OF point
ed questions concerning the proposed
financing scheme by which the Bati
to acquire the property.
Reorganization Proposed.
Mr.. Williams stated that one of the
purposes of this corporation Is to re-
organize the Baltimore and Washington
Transit Company. In reply TO question
by Chairman Siddons, he stated that he
considered $1l3, 800 would be fair price
for the property.
Attorney Williams was asked IL he
could point to any paragraph in the
public utilities law which makes IL nee
essary for a foreign corporation to APP
ply to the District commission for au-
thority to issue stock.
After consulting the law he stated
that he was unable to find any section
of that character, and announced that
he concurred in the view of the COM
mission that the question in its present
form does not properly come under the
Of that body.
The Baltimore attorney expressed
confidence that the sale would be rati-
fed at an early date and that the COM
pany within a short time would be in a
position to renew its application for
authority to issue stocks and bonds or
the amount named in the application.