The Richmond Virginian. (Richmond, Va.) 1910-1920, 1920-01-06
Special Commission
Considering Merger
Of Important Roads

Plans have meer fied By the board
Of directors Of the Richmond, Freder-
icksburg and Ptonac Railroad and
the Washington Southern Railway to
Ynerger 81 the two lines under the
name ofthe Richmond. Fredericksburg
and Potomac Railroad company. con-
etituting perhaps the most valuable
line az railway I'M the United States.
AT present the eystnxn IL divided into
two parts, the WaShiDg ton So uthern
owning the lire between Quantieo and
Washington, ana the older road, char
tered IN 1894, the line between GUAM
tee and Eroad Street station, IN Rich
rnund.s
The proposition liz now In The hands
az special commission, constituted
under an net at tire Legislature in
|1at2, and composed DIT Governor
Davis, Judge william n. Rhea. Major
Alexander Forwayd, Berkeley d.
ADAMS and George Bryan. This conn
mission met YESTERDAY and decided that
any person " ma dssik'sd ~ bA heard
d, e IN, sss III asss NH. ] y 8
i1o1x nursery nieisfs Jan
q IN IN b
This unus,1al arrangement or consid-
|ertng Il merger " due to- the fact that
The gtates OF Virginia owns an interest
~ per cenf In rhe stuck Of the
Richmond. FrederickTburg and Foto-
r,ac, ana tho Legislature, which has
many times considered this proposed
not take place except with the approval
OF u holy constituted I'd safeguard the
interests OF the Commonwealth.
The Washington Southern liz owned
by six large raiirnaa systems the Eai-
tinore and Chic, tho Seahaara Air
Line and this Pennsylvania These
roads also own 81 per cent OF the
stock OF the Richmond, Frederieks-
burg and, Potomac, the State 1s per
cent. while the remainder Is widely
scattered.
Tho basis OF the proposed merger Is
that the Richmond, fredericksburg
and Potomac shall ASSUME the $4,000.
eco. per cent outstanding FIRST ntsrt-
gage bonds OF the Washinrtp South
ern. due June I 1919. and shall issue
II exchange fer the $4,000 outstand-
ing shares OF stock OF the Washing
Ton Southern, OF the par VaIue OF $50
each. An GOO shares of noa-vuting,
ncn -es1r3ulative per cent stock Of
the Richmond, Fredericksburg and
Potomac, Of tho par value OF $500
each.
1T is pointed out that IL this plan II
CO rried through, the non voting Tea :
ture of the proposed stock issue Will
maintain the exact relative voting
strength OF every Richarond. Fresler-
icksburg and Potomac share holder az
II exists nj present. For example. Tile
state will continue to vote 1 8 'par cent
nf the stock rf the consolidated line.
4. The special commission, II is stat
cd, Is looking carefully I'M IA every
feature pf the proposed merger, and
has consulted Attorney General SaHsl-
ders concerning several features ar the
proposition. En- ss
For, many weeks the proposed naer-
ger has been III prospect, and has been
the subject ~ numerous ecnferences.
The directors cf the twt Hines gave
their approval Mt a meeting held In
New ynrk December iS. although II
is stated there was aorne opposite ION ON
the part some washing ten~Sonsh-
ern stock bidders 50 s.s e.
During TIE past two Years. bes,~nss,
cf thc Marine Corps barTRrks III
GRANTEES, NM yvaEising ton Southern
has Ter stlIe first time become the most
profitAAfe part sof the system. earning
rlore dividAnds than the Richmond,
FrenericlEburK ana Potomac. III Is
said the Mariue camp VIII pa pernlan-
.ent NJ