Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-07-25
Protective Committee for
DefauIted Notes Orders
Their Sale.
BLOCK HAS CONTROLLED
ORGANIZATION FOR YEARS
Some Think Capital Traction May
Make Bid if 7-Cent Fare
Is Granted.

Sale of the 27,5O0 shares of the COM
mon stock of the Washington Rail-
way and Electric Company, held as
collateral for the defaulted notes of
the Washington Utilities Company,
was ordered today by the protective
committee.
This large block of stock has prac-
ticaly controlled the Washington
Street Railway Company for years,
with the proxies that were sent IN
annually by shareholders
The full committee, of which r. N.
Harper is chairman, met at the Ma
tional Metropolitan Bank last night
and discussed the various phases OF
the situation for several hours. the
result being adoption of the resolu-
tion ordering the sale.
The committee does not know
whether there will be bid for the
property or not, but is hopeful that
a sale may be effected, otherwise the
committee will buy in the securities
and thus alter their position from a
creditors committee of defunct or
ganization to interested shareholders
in the Washington Railway and Elec-
tr.c Company, and therefore be much
better qualified to appear before the
Washington Utilities Commission and
dlSO " dSSUi.c FOSiiicHS ou lHc III
rectory of the company. if such ac-
ton should seem desirable.
Committee Not Eliminated.
The committee does not expect to
he eliminated from the street railway
situation through the sale of it's Sc
curity and the liquidation of advances.
although it is probable that if a bid
should be made for the 27,500 shares
of common stock around $50 a share,
it would welcome the shifting of the
burden to other shoulders and call the
account closed.
Some interest was expressed in the
possibility of the Capital Traction
Company making a bid for the stock.
although small hope was expressed
for a solution of the matter in this
way.
subcommittee of the full commit
tee reported last night on interviews
with w. F. Ham, president of the
Washington Railway and Electric
Company, and Engineer Commissioner
kutz. Mr.. Ham was reported as plac-
ing his cards upon the table, giving
every fact and figure available to the
committee, and willing to delve deep
er for other facts if desired.
From the information at hand the
committee decided that the company
was in really desperate straits. and
that the relief, if the utility commits
sion has in mind the granting of in
creased fares, must come quickly to
prevent further deterioration OF the
system, tracks and equipment.
Provides for High Efficiency.
Belief was expressed that 7-cent
electric light and power from 10 to s
cents, would not only enable the
Washington Railway Company to
operate at a fair margin of profit.
the system at high efficiency.
Discussing the probability of a
mittee held that the Capital Trac-
ton Company might be induced to
enter an agreement to this effect pro-
vided the 7-cent fare were granted.
and an agreement could be reached
in the matter of value of shares. a
proposition much more readily
tons than when the stock of the
Washington Railway and Electric
Company was selling at much higher
prices than at present.
AS an alternative, the chances are
that the Washington Railway and Elec-
trio Company without prospect Of relief
will seek to abandon some Of it's lines
that are necessary to the passenger
traffic of the city; that a default will
follow on some of the subsidiary COM
pany's mortgages, that the condition of
track and equipment viii deteriorate
and that eventually the federal govern
ment may be obliged to come to the
rescue and take over the property, when
il would at once have to increase fares
Congress might take the situation in
hand, according to the views of some
of the committee, and order merger,
which would probably have to be made
on a satisfactory basis to the Capitol
Traction Company shareholders and on
:, fare basis that would enable the sys-
tens to operate successfully, solution
that would please all concerned The
reduction in overhead and operating ex-
penses would be considerable, it was
I'D