Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-07-11
WASH.-vA. RAIL WAY
MAY BE SOLD SOON
FOR "SCRAP VALUE
continued from First page.l

Il II
OF street car service between Falls
i Church or Vienna and Fairfax. and
between Alexandria and Mount Yer
non. These extensions, he said. are
not self-suppo
The Washington.Virgin Co. has
beer In the hands Of receivers For
nearly three years. Arthur L. Roy.
| nolds, former manager OF the COM
pany, was appointed receiver BY
Judge Samuel Brent OF the Circuit
Court In Fairfax on November rs.
| 1898, after series OF controversies
over the financial affairs Of the road.
Woman Sought Receiver.
The troubles Of the company. It was
brought out at that time. resulted
principally from the increasing com.
petition OF buses. coupled with rising
costs Of railway transportation. The
difficulties first came to light on Nov.
ember s, 1928. when Mrs. Matte M.
Newcomer, holder of several OF the
company's bonds, filed with Judge
Brent petition for a receivership,
declaring that the corporation officials
had allowed the properties to reach
| a degree of insolvency through
wrongful misrepresentation waste
and reckless, improvident and unlaw-
full financiering: abuse OF its corporate
| powers and unlawful diversion Of pro-
ceedS."
Mrs. Newcomers allegations COW
| cred period since 1908, when the
Falls Church and Mount Vernon lines
We're merged into one system. with
Clarence p. King as president. Mr..
the Washington Railway and Electric
Co.
The petition OF Mrs. Newcomer re-
ferred to this consolidation and as.
serted that ..the Washington Utilities
| Co. was created under the laws of
Virginia by Clarence p. King as part
of scheme Of accomplishing huge
consolidation OF street railway inter-
ests in and about the District of Co
lumbia and adjoining States" This
scheme. It was alleged, collapsed.
bringing about the state Of insolvency
cited.
| Court Finally Takes Action.
The company. in reply. told the
court that Mrs. Newcomers charges
were "misstatements of fact" and en-
tered demurrer. Judge Brent on
November Is, 1928, denied Mrs. New
comer,s petition, but shortly there
after other creditors Of the company
| Joined In seeking q receivership, and
upon the company's admission Of dire
financial straits, involving the default
ture Of interest on its bonds for three
years, the court appointed Mr.. Rey-
nolds as receiver.
Since going into the hands OF the
receivership the company has made
several bids for bigger and better
profits, first by the institution Of q
special "parlor carr service to Mount
Vernon and then by establishment of
| a bus line between Fairfax, Falls
Church and Washington.
In spite Of these efforts to keep its
footing. the system apparently has
been waging discouraging struggle.
and the decision to terminate the re-
Ownership as soon as possible is be-
heved to be the outcome.
Definite statements from the COM
pany regarding details Of its plans
for the future were not available last
night. Mr.. Reynolds, 1t was said, is in
Florida, and Mr.. Woodcock returned
to Chicago shortly after the meeting
In Alexandria. John w. Rich, general
superintendent of the road. disclaimed
knowledge OF the activities OF the re-
ceivers, beyond the fact that Mr..
Woodcock held conference with the
committee in Alexandria yesterday.