Evening star., 1915-06-24
HERD|CS TO CEASE
RUNNING TONIGHT
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.

FdlluFe 10 OBTAIN IRON the Poo'o
utilities commission authority to Is
sue s15O,00O worth of bonds Will re-
suit in the Metropolitan Coach COM
pany discontinuing it's herdlc service
on 18th street at Il o'clock tohlght.
The company so notified the commls-
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 10
it's relief by authorizing the issuance
of bonds to the amount of $15o,0o0- The
board named certain conditions under
which it would authorize bonds to the
amount of s118.0O0, but this plan was
not satisfactory to the company
The difference between the Two
amounts represented an indentedness
previously incurred which the company
was anxious to provide for by bonds.
Utilities Boards Position.
In communication to the company
under date of April "a the utilities
board suggested that 1T would author
ize the issuance of bonds in the amount
equipment, s66,000 for new vehicles
and 100000 for land and garage, max
ing total of s1O7,50o. This offer was
made on condition that the company
reduce the face value Of its outstand-
ing stock of $25,o09 to $1,000. In this
event the excess of property value over
the par value Of the stock would be
s1o6.500. Allowing 10 per cent for de-
probation there would result bonds to
the amount of $11S,000.
Tn refActinR thia offer fhe coNnnanv
took the position that the issuance of
bonds to the amount of s150.o00 would
not mean an increase in its indebted
ness but would merely enable the COM
pany to carry an existing debt. in
CURED In the establishment Of the serv-
ice, at the same time its improvement
plans were being executed.
Metropolitan Coach Company, could not
be located this afternoon. officials of
the utilities commission said they knew
Of no action they could take in re-
sponse to tho company's notice Of it's
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
the Washington public utilities COM
HliSSlOH, covering Lne year 1915.
The total revenue for the year was
$24,734.65; operating expenses. sea-
654.53. or 1888 per cent of gross re-
ceipts: interest and taxes brought the
cost Of operation to s4.3s1.47. net loss
ginning of 1913 the deficit from the
years of operating was $119,12131,
making the deficit at the close OF 1918
s122.422.6S.
The cost of equipment is given as
nd so
Funded debt at the close Of 1918 was
ss5.Soo.46 tnotes) and current liabil-
tiles s26.001.34
In 1918 the line carried 577,6ss pas
carried 24s.oss passengers free0on
transfers from the Washington Rail-
way and Electric Companys H street
line
The officers are S. Dana Lincoln. pres
ident; D. c. Chesterman, secretary and
treasurer, and E. A. Nelson, general su-
perintendent
President Lincoln's Letter.
Mr.. Lincoln's letter to the public
utilities commission was as follows:
referring to your letter Of April IA
and with reference to the previously
declared attitude of the commission
with respect to our application for per-
mission to issue s150.O00 of bonds, we
the commission Is such as to make 1t
impossible for us to finance and there
fore impossible to continue the opera
ton 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
Indebtedness of the company. 1t would,
however. have enabled us to put an
existing debt (Which was Incurred in
the establishing and equipping the
motor vehicle service) in such form
that 1t could have been carried at the
same time to the company's 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
company's vehicles on and after mid
night June "a, 1915"