The Washington herald., 1921-05-16
There are some who bear grudge even
, those that do them good.-Plpay.
Washington Street Railways.
XVIII RAILWAY HISTORY.

XNtlI RAILWAY HISTORY.
TINE present managers of the w. R & E. are
not responsible for any of the organizations
within its fold. The corporation, ITSELF
is not a creature of their making They have it as
an inheritance They are doing the best they can
with child m[born and misshspen. The prenatal
influences of which it is the consequence, form one
of the most fascinating stories imaginable They
are picture Of that time, happily gone. No Con-
gress of today either would, or would dare do
what brought the w. R & E. into being.
1t IS almost beyond imagination that successive
Congresses saddled upon this District over thirty
distinct street railway companies, with as many
separate charters Thirty street railways in ter
ritory by ten miles in area, certainly should
have filed all possible long -feltwants." This is
about one to each two square miles. From time to
time several of these permitted to merge. The
w. R & E. included twenty-nine of these which
The Herald has been criticised for calling largely
cats and dogs" Of the then existing companies
prior mergers having reduced the number-it took
over some fourteen
But one of the strangest features of the tale is
that the w. R & E chartered June S, 1900
while antidatrng it, the Washington Traction and
Electric Company had been chartered in Virginia
in June, ISoo just one year before. This company
seems to have been the creature of group of pro-
moters who out-Wallingforded Wsllingford in fren-
zied finance The findings of the utilities commits
sion in the valuation of the w. R. & E. properties
say:
- The history of the transactions involved in
securing control of these several companies and
the records of the holding company (the Wash
Ofngton Traction and Electric Company were
withheld from the commissions accountants
during the progress of their Investigations into
the historical cost of the property of the
spondents (the w. R. & E) The existence of
these records not disclosed until the
examination of witness Wilson, accountant for
he Eehruary
years after the commission began its investiga-
tion looking to the valuation of this companys
property and practically at the close of this
Yet at the time of granting the w. R. & E
charter, the Washington Traction and Electric Com
pany of Virginia, already controlled all the street
railway companies which the w. R & E. was au-
thorized by to purchase individually and the
W. T. & E. did not let go of them until in 1901
when, as corporation, it sold at foreclosure
sale. Nor did the w. R & E. take these
roads until in 1902 when its first block of stocks
and bonds were issued, in February, in payment
exchange.
Here is one company which bought all these
other companies. Another was organized year later
and lay stil-born for nearly two years, while the
first company practically went through bankruptcy.
The w. R. & E. charter which was in hct granted
to the Washington and Great Falls Electric, does
not disclose that these roads already gathered
together in another merger. 1t most carefully
ais this fact and wonders if the Washington
Traction and Electric not chartered under Vir-
gnia law for this very purpose. If it had been
suilty of any criminal illegal acts the transfer
10 an innocent corporation might be a cure
But the legality Of granting a merger charter
to a corporation distinct and separate entity,
fbat had already lost its individual identity and was
the property of combination, might be question
able in law, well in morals. 1t would seem
That some one in Congress must have known of
these wheels within wheels but Congress as a
whole could not know and it is inconceivable that
Senator Mcmillan, head of the District Committee
known for his integrity and probity could have been
=. party to this sort Of shuffling of the cards.
According to the commissions valuation re-
port, the control of all these railroad properties
Stsd been acquired through stock ownership prior
tos 1000" The Washington Traction and Electric
had been organized in ISoo Its promoters had
already acquired control of all or most of these
separate railway properties. They had begun their
operations to acquire such control in 1896 Their
operations had been open and notorious. They
had bought openly and above board, raising some
stocks to twice and three times their market values
Indeed the whole situation would make fine
subject for scenario of moving picture play in
contrast to anything possible in these demure days
with Congressional watchdogs on guard