Evening star., 1923-11-05
SEEK
RE0RGAN|zAT|0NOF
VIVA. RAILWAY CO.
Petitions to Be Filed in Dis
trict and Virginia by
Creditors.
SUIT FOR RECEIvERSHIP
STARTED BY B0NDHOLDER
Committee Operating Road De-
clares No Fare Increase Nor
Curtailed Service Planned.

reorganization of the Washing
ton-Virginia Railway Company Is be-:
ing planned by noteholders' COM.
mittee, under which the road hat
operated for the past three years. y
was learned today. The first step In
the proposed reorganizing will be tf9
filing of positions in the courts of thl
District of Columbia and Virginia u
have the rights of the various lien.
holders judicialIy determined.
The noteholders' committee, it be.
came known today. met in Philadel-
phta last week and decided to start
proceedings for reorganization and
were busily engaged in preparing the
court petition when Matte NJ New
conner, an individual bondholder, un-
expectedly filed suit Saturday at
Fairfax Court House. asking that
receiver be appointed.
1t was learned today from reliable
sources that the petition for receiver
filed by the one bond holder at Fair
TAX Will not deter the note-holderS
operating committee from going ahead
with its plans for court reorganiZa-
tion of the company
1t also was stated today that the
sidering an increase in fare or cur
tailment of service in connection with
its plans.
Charges Dividends Passed.
The petition for receiver filed at
Fairfax Court House Saturday by
Attorneys Charles H. Merillat and
William NJ. Ellison, alleges that the
company has defaulted in the pay
ment of dividends for the past three
years.
The charges brought are that cor
poration officials have allowed the
properties to reach that degree of in
solvency through wrongful misap-
provident and unlawful financiering.
abuse of its corporate powers and un-
lawful diversions of proceeds" of sew
eral of the bond Issues and mort
cages.
Judge Samuel c. Brent has ordered
that the defendants to the petition
show cause Saturday why a receiver
should not be appointed. Gardner L.
expected to seek an extension of that
time this afternoon.
Extend Back to 1905.
The allegations made extend over
period of time from 1908 to the
present. The two lines-the Falls
Church line and the Mount Vernon
line-were at that time merged.
Clarence P. King. who became presi-
dent of the consolidated companies
in 1908, later became president of the
Washington Railway and Electric
Company.
The Washington Utilities Company,
the petition cites. was created under
the laws Of Virginia by Clarence P.
King as part of scheme of accom-
plishing a huge consolidation of street
railway interest in and about the
District of Columbia and adjoining
states"
This scheme. as well as many 9TH
ers. the petitioner says, collapsed,
thus bringing about the state of in
solvency in which the company now
finds itself.
Other defendants named in the pc
tition are: Washington, Alexandria
and Mount Vernon Railway Company;
Washington, Arlington and Falls
Church Railway Company; Washing
ton Utilities Company, Walter Hinch-
man, trustee; Merchants Trust Com
pany. Philadelphia, trustee; Real Es-
tate and Trust Company, Philadelphia,
trustee; Commercial Trust Company,
Philadelphia, trustee, and Guaranty
Trust Company, New York, trustee.