Evening star., 1919-09-06

ating in the District of Columbia.
Failing in this, negotiations were en-
tered into with the Washington and
Georgetown Railroad Company.
AT that time the Washington and
Georgetown Railroad Company was
earning and paying very large divi-
dends to it's stockholders and was one
of the most profitable. If not indeed
the most profitable street railway line
operating in the District of Columbia.
A committee was appointed by those
interested in the two railroads to as
certain the value of the Washington
and that committee having found the
total value of said road to be the sum
OF $40. 100000, contract was entered
into on the 21st day of September.
1895, under the terms of which the
Rock Creek Railroad Company pur-
chased the property, franchises, rights
and privileges then owned and en-
joyed by the Washington and George
town Railroad Company.
Equal to Market Value.
ut appears from the r. that the
consideration named-in tn. -act was
an amount equal to the mar.;et value OF
the stocks and bonds Of the Washington
and Georgetown Railroad Company, and
it is not disputed as a fact that this
market value was not made by any tenn
porary arrangement for the purpose OF
boosting the selling price of said road.
'It is an admitted fact. however that
these stocks and bonds had been selling
on the Washington Stock Exchange for
many years at the identical price at
which they were purchased under the
terms of this agreement. In the argu-
ment of the case it was admitted and
accepted by the commission as fact
that much difficulty was experienced by
those endeavoring to perfect the terms
of this agreement to prevail upon the
stock and bond holders Of the Washing
ton and Georgetown Railroad Company
to accept the price agreed upon under
the terms of the contract. Many of the
stockholders Of the Washington and
Georgetown Railroad Company applied
to the courts for redress and insisted
that they had property which was OF
greater value than the price agreed
upon by the terms of the written
agreement of sale and purchase.
"At that time there could have been
no thought in the mind Of any one that
in 1919 there would be commission in
the District of Columbia, empowered by
nous task of reviewing the history Of
this company to determine fair value
Of it's properties and to fix rate Tor
travel over its lines. 1t was the opinion
of all persons-certainly the great, great
majority Of financers-that railroad
property belonged exclusively to the in
vesters and it was worth what they
could get for it. The men engaged In
this transa ction were men OF the high
est character. integrity and nnanclai
standing in the community in Whlch
they lived, and they had the united con-
fidence of all the citizens Of the District
of Columbia
Contract Was Concluded.
with this situation existing and
with the positive authority from
Congress to do that which was done.
this contract Of purchase ana saie
was concluded and the Rock Creek
Railroad Company. now the Capltai
Traction Company. Increased It's capl-
tai stock and issued stock to the
Stockholders And bondholders OF the
Washington and Georgetown Ra1lroao
Company in the exact sum named IN
the terms of the written agreement.
That such an arrangement was an
advantage to the riding pup!lc can
rot be denied. Congress- in lts WIS
dom in granting the amendment 10
road Company. under which this pur-
chase was made, stipulated In the
terms of said amendment that all per-
sons should enjoy the right to rae
over all portions Of the lines SO ac-
auired as well as the lines of the
purchasing company upon payment
Of one fare. Congress, by its original
act giving life to the Rock Creek
Railroad Company. limited single
fare to 5 cents or six tickets for
Quarter The public. therefore, from
fhat date, to wit. 1895 to 1918. enjoyed
the advantages Of this purchase and
sale The company having the conf
dence of the public. and the company
giving to the public good service and
proper and courteous treatment, this
stock has been dealt in during all of
these years from the time OF the pur-
chase to the present day, and, in fact,
today is being dealt in by those seek
believing, as they had right to rely
upon and believe. that the acts Of this
company in paying the price It DID
for the property and rights OF the
Washington and Georgetown Rail-
road Company. under the specific au-
! thority of Congress, would be pro-
tected by all legislation and COM
missions
Duty to Protest Investors.
a. for one. believe It to be the duty
of this commission to protect those
who have innocently and honestly
, invested their money and not take
from them $5.143,907.29 OF the value
Of their property because commits
sion created some fifteen years after
this transaction believes that the pur-
! chase price agreed upon by this COM
mittee presumably composed of ex.
pert railroad men) was in excess OF
! the sum which the commission thinks
should have been paid.
But 1t is not for this commission
] to say that this sum shall not be