Evening star., 1915-06-24
Metropolitan Coach Company
Will Discontinue 18th Street
Bus Line.
BOND ISSUE REFUSED,
CONCERN MUST QUIT
President S. Dana Lincoln Notifies
Public Utilities Commission
of Intention.

Failure to obtain from the public
utilities commission authority to is
sue s150,00O worth of bonds will re-
suit in the Metropolitan Coach Com
pany discontinuing it's herdic service
on 18th street at II o'clock tohisht
The company so notified the commits
sion today.
No action was taken by the utilities
board, which was in session at the time
the communication was DELIVERED.
Several months ago the herdic con-
Germ threatened to go out OF business
unless the commission should come to
it's relief by authorizing the issuance
of bonds to the amount of $150,O00. The
board named certain conditions under
which 1t would authorize bonds to the
amount of s11s.00o, but this plan was
not satisfactory to the company
The difference between the two
amounts represented an indebtedness
previously incurred which the company
was anxious to provide for by bonds
Utilities Boards Position.
In a communication to the company
under date of April "a the utilities
board suggested that 1t would author
of S11,5OO to cover cost of present
equipment, s66,0oo for new vehicles
and 100000 for land and garage, max
ing total of $107,500. This offer was
made on condition that the company
reduce the face value vad Of its t. outstand
event the excess of property value over
the par value Of the stock would be
s10s.500. Allowing 10 per cent for de-
probation there would result bonds to
ho o,.rNf af
In rejecting this offer the company
took the position that the issuance of
bonds to the amount OF $150,000 would
pany to carry an existing debt. in
CURED in the establishment of the serv-
ice. at the same time it's Improvement
plans were being executed.
S. Dana Lincoln. president of the
Metropolitan Coach Company, could not
be located this afternoon. officials OF
the utilities commission said they knew
sponse to the companys notice of its
intention to go out of business.
Operating for Years at Loss.
The company has. for years. been
operating at loss, and has held on
endeavoring to make the franchise
valuable.
The latest report at hand is that to
mission, covering the year 1913.
The total revenue for the year was
$24,13465, operating expenses. s23.-
654.53. or 1888 per cent of gross re-
ceipts; interest and taxes brought the
cost Of operation to s4.ss147. net loss
for the year of $3,3O1.25. At the be-
ginning of 1913 the deficit from the
years OF operating was $119,121.31,
making the deficit at the close Of 1918
THE cost of eoujnmAn+ 10 oIyar
s22,s97:46 and current assets s1.1s1.es
Funded debt at the close Of 1913 was
ss5.600:46 tnotes) and current liabil-
tiles $26.00134.
In 1913 the line carried 577,6as pas
sengers paying regular fare. and 1t
carried 243.06s passengers free-on
transfers from the Washington Rail-
way and Electric Company's H street
line.
The officers are s. Dana Lincoln, pres
ident; D. G. Chesterman, secretary and
treasurer. and E. A. Nelson, general su-
perintendent.
President Lincoln's Letter.
Mr. Lincolns letter to the public
utilities commission was as follows
referring to your letter of April "a
and with reference to the previously
declared attitude Of the commi ssion
with respect to our application for per-
mission to issue s150,O0O of bonds. we
must repeat that the position taken by
the commission Is such az to make it
impossible for us to finance and there
fore impossible to continue the opera
tion of the Metropolitan Coach Com
pany.
"As We have heretofore pointed out,
the proposed issue Of bonds would not,
except as to the amount specified for
new vehicles and garage, Increase the
indebt edness of the company. 1t would,
however have enabled us to put an
existing debt (Which was incurred in
the esta ablishing and equipping the
motor vehicle service) in such form
that 1t could have been carried at the
same time to the companys improve
ment plans that were being executed.
we have also expressed the opinion
that in applying to the case of this
company rules formulated with refer
ence to utilities Of wholly different
character the commission takes a po-
sition that makes the further attempt
to continue operation Improbable and
impossible.
I'VE are for this reason obliged to
notify you that it is the present inten-
ton to suspend the operation Of the
companys vehicles on and after mid
night June "a, 1915"
nrcrryyCp Nnp rYCDnYr YYNE