Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-08-01
CITY AND SUBURBAN
RAILWAY DEFAULTS
Failure Of w. r. & {. Sub
sidiary to Pay Interest May
Bring Receivership.
UTILITIES BODY BUSY

Threatened disintegration Of the
Washington Railway and Electric
Company, because Of financial difficult
ties, reached a state of realism today,
when one Of its subsidiary elements
the City and Suburban company
failed to meet an interest charge on
its outstanding bonds amounting to
more than $4,000.
There is ninety-day period of
grace allowed in which the default
may be made good. There Is no prob
ability, It is stated. Of the general cor
poration meeting the obligation in
that time, unless financial relief is
given it by the Public Utilities Com
mission.
Receivership Threatened.
II the interest Is not paid the road
will go into the hands of receivers in
ninety days. It is believed.
The City and Suburban company is
composed Of the old lexington and
Soldiers Home line, and the Maryland
and Washington and Columbia and
Maryland lines, with which it ANAL
gamated. Its mileage 10 40.41. Its out.
standing bonds amount to $1.750,000.
anu SIOCh 10 81, fOUpVVU.
According to officials of the Wash
ington Railway and Electric Com
pany, this subsidiary. which is run
ming at q heavy loss, has paid divi-
dends only during three years Of its
existence-1914 to 1916. The total
amount paid in dividends is said to
be $4,000. The company is now in
debted to the parent body in an
amount said to be in excess of $780,
900.
Did Not Earn Interest Last Year.
As far back as. 1903 the company
was able to earn interest charges.
1t hauled 100000 passengers that
year. Last year it hauled 22,000, 600
passengers, but failed to earn inter-
est charges. it is declared.
This Is cited az an example of how
increased business on the lines of
keep pace with Increased cost of OPP
In an effort to straighten out the
affairs of the Washington Railway
and Electric Company the Public
Utilities Commission today is making
strenuous efforts to complete q valu-
alton of its property. Relief in the
form Of higher rates will not be con-
sidered except upon the basis Of the
valuation.
Decision Not Likely Till Aug. Is.
Two nights this week the commits
sion has worked on the valuation fg-
ures until nearly IL o'clock. Com
missioner Gardiner Is giving practt-
cally his entire time to the problem.
It appeared probable today decision
would not be reached before August
Is, at the earliest. A valuation for
the Capital Traction Company VIII
With one subsidiary Of the Washing
ton Railway and Electric Company
facing rseeivership and the motormen
and conductors planning to ask for
higher wages, the commission Is inn
pressed that action on the company's
petition for financial relief cannot be
much longer delayed.
Lieut.. Klotz sueeseds E. n. Potter.
8. Tho commission has appointed
Lieut. r. @. Klots OF the military in
telligence division Of the Army as en-
gineer to succeed p. n. Potter, who
resigned recently. Lieut.. Kiots for
msriy was connected with street rail-
way work in New York city, having
been associated with Mr.. Potter.
]. Kappeyne, formerly engineer of
the local commission, was visitor at
the District building today. He has
been making investig atoms in Pitts
burgh, where the street railways re-
Gently went into receivers hands.
The condition of the traction indus.
try throughout the country he de-
clared, is deplorable.