Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-07-27
BY I. A. FLEMING.

BY I. A. FLEMING.
If the Washington Railway and Elec-
trio Company does not find a way out
Of its dilemma before very long 1t
may be the preferred shareholders
who will seek reorganization rather
than the common stockholders.
The bondholders may get an idea
that their interests are jeopardized
and take hand in the game. making
1t three-cornered.
The fact is recognized that the
bondholders have nothing to say SO
long as their interest is paid promptly
and the preferred shareholders may
use their voting power at each an
nual election. and no more. so long as
they receive their dividends, but if
either interest considered its prop
erty rights in jeopardy it might
appeal to the courts.
The general situation with regard to
the. Washington Railway and Electric
Company has not improved during the
week; that is. no relief. permanent or
temporary, has been granted by the
utilities commission, Congress has
shown no evidence of being at all in
terested. The utilities commission is
said to be divided in the matter of
granting further relief. and the vari-
Gus citizens associations are at least
looking for improved transportation
facilities irrespective of fares.
The Potomac Electric Company
spreading its services throughout the
District, Maryland and Virginia, has
now to earn interest on $3.50, 900
bonds. $2.s00,000 of which pays per
cent and the balance per cent. In
1913 1t had outstanding s6.729.OO0 5
per cent bonds. Its capital stock is
al owned by the railway company.
An Undeveloped Asset.
II is possessed of one undeveIoped
asset that in itself is probably
capable of solving the entire prob
lem OF the Washington street rail-
way company. That is the water
power rights at Great Falls, the de-
Veiopment OF which would furnish all
the power needed for the District of
Columbia, Maryland and Virginia. 1t
Is estimated that the DEVELOPMENT
work would cost ten millions of dol
lars, not a large amount by any
means as developments of big projects
80. Perhaps some day a capitalist
10y undertake this project, or it
might be possible that Congress.
which has been frequently reminded of
me power going over the falls to waste
every day, may some day act
Inere Is another phase to the Wash
lngton railway situation. The COM
non STOCK is In the dumps; the d.
3 rectors have no hesitation in predict
Ing dire disaster in the event of fail
ufe, OF the utilities commission to ex-
teho the needed assistance in the
immediate future.
Public vitally interested.
The public must be considered in
Its claims for service; it needs the
roao and its service just as much
is Independent.
Moreover, the Washington Railway
Company will be operated by some
one, and the operating factor will
ma need for higher compensation
just as pressing as the present man
agement does.
The preferred shareholders will be
neard' from at the annual meeting,
beyond doubt. They will probably
make an effort for representation on
the board and insist on economical
m nna9sg of the property. 1t is
preferred stock in the matter of
Iper cent dividends and face value of
stock In liquidation.
.Herliy the problem has many and
varied angles, must provide a larger
SF9ss income and at the same time
seooce expenses and keep from put
ting out further bond issues-the nub
OF many corporations troubles and
Just now popular form of getting
more money to spend, without
thought OF final settlement of the
obligation
Providmg crossing policemen is one
on the street railway Companies of
the Districts burden that in part. at
least should be placed on the District.
Local Securities,
The market during the past week
has, been slow. but with a general
steady tone to the list. The type
settlers have showed little trading
with little easier feeling on Mer-
on Lanston. Street Railway pre-
1ersed has shown some recovery.
bonds were fairly firm and without
change Of importance.
= ~ Two Shining Marks.
e.. Washington mourns the death of
Sua or her prominent and highly re-
spected citizens in the passing of
Inomas hyde and Z. v. Murphy, both
ness affairs of the city. Mr.. Hyde,
BY reason of his connection with the
Riggs Bank, dating away back in
the early 70s, and his wealth. was
!. the most prominent, but the courte-
GUS kindly stenographer of the Sen
ate, was q man among men.
. The passing of Mr.. Hyde leaves
Charles c. Glover the last of that
great quartet of the days following
the war and even before the close of
the struggle. although as business
partners their connection did not be-
gin until the early 70s. Reference is
made to George Riggs, w W. Cor
coran. Thomas Hyde and c. c.
Glover.
Mr.. Glover characterizes w. W. Cor
-coran as bold and daring" He must
have been, for he gave away
100000 and left 100000 when he
died, which fortune was judiciousIy
handled by his heirs. The Corcoran
Gallery is part Of his tribute to Wash
ington.
Mexican Loan Helped Much.
It is not generally known that the
foundation of the Riggs Bank pros
perfty in the days when 1t was
George w. Riggs & Co, was founded
on large Mexican war loan, the
making OF which required consider
able nerve.
George w. Riggs is described by Mr.
Gloer as "a conservative. highly
educated man
Two such opposites make a grand