Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-06-26


In 1899 the Washington Traction
and Electric Co. was organized, OBJ
tanning a controlling interest in al
the street railways in the District
Of Columbia with the exception of
the Capital Traction Co.
Wisely it obtained control Of the
entire capital stock Of the Potomac
Electric Co. at the same time through
the acquisition of the entire 10000
shares of stock.
BY so doing 1t eventually gave a
value Of $3.50 share in the market
| today for the common stock of the
successor of the Washington Trac-
ton & Electric Co. the Washing
ton Railway & Electric Co., a
stock paying but per cent ON a
par valuation Of 500 a share and
yielding just per cent annual re-
turn en- the investment--all because
the Pepco company is a real jewel.
well able to carry it's increasing
capitalization and eventually dis
play a star part In the ultimate plans
! of the minority control. North Amer
lean Co. plans that are at present
undeveloped SO far as the public Is
concerned, but which must certainly
revolve around a merger with the
Capital Traction Co, to be effective.
In the Matter of Capitalization.
The Capital Traction Co. was or
ganized in 1895 through the ABSORB
ton of the Washington & George
| town and the Georgetown & Rock
Creek Cos, the latter being the
Chevy Chase line, one of the longest
hauls of the company and now one
of the best paying of the company's
| m r z1 NJ ny,I
ward L. Stellwagen were important
factors in the organization of the
| latter company.
The original capitalization of the
company was $f2,000,000 and this is
| the exact amount of its capital today.
| It's bonded debt was originally 81 $780,
| 600. allotted to the shareholders to re.
| tire the floating debt contracted in the
| substitution of electric power for cable.
| OF the proceeds $500 900 was devoted
| to Improvements. The bond issue bore
per cent interest and was subject
| to retirement after three years at 100
| and redeemable after 20 years.
The Capital Traction Co then is
| sued $780, 900 first mortgage 5s and
this completed the financing to date.
| All late improvements have been paid
for from the earnings OF the com
pany, which was immensely profitable
in the first 10 years of this century
and 1t has always paid good dividends
to its shareholders.
Washington Traction and Electric.
This company had on organization
I'm 1899. sec, 00e, 900 authorized stock,
of which $40, 1000, 900 had been issued
the total stock of the IL companies
that were absorbed in the merger was
81 ZOO. the company acquiring all
OF the Columbia and nearly all of the
Metropolitan. Anacostia & Potomac,
Georgetown 4 Tenleytown, City &
Suburban. Washington & Forest Glen,
all of the Washington & Rockville and
nearly all of the United States Elec-
trio Lighting Co., also Washington &
Glen Echo and Brightwood.
The total bonded debt of the under
lying compa MES was 4$S,000.000, of
which the syndicate purchased 81 ,400,-
600. r.,
Collateral trust 5o-year gold bonds,
bearing Al per cent, were issued to
the amount of 1000, 900, $3.50, 900
being held to retire outstanding bonds
of constituent companies and the bal
arce held in the treasury. These bonds
were retirable at 1912 on three-month
q
Trust Co. was trustee.
George Truesdale, a well known
Washingtonian who passed on few
years ago. was the president Of this
company: Charles A. Lieb, vice presi.
dent: NJ. D. Mirick, treasurer, and
James B. Lackey, secretary. The his
tory Of the local Stock Exchange now
under review does not give the board
of directors.
The merger of the street railroads
brought into one corporation a mum.
her Of weak sisters in the business,
many of them commencing nowhere
and having their terminals, likewise.
at no particular place. Many Of these
companies had been formed as an ad.
junct to the furtherance of realty de.
velopments. to bring this and that
property within ready reach Of in.
vestors and home builders.
The combination was short-lived;
failure was predicted on short order
and was realized In 1901, when default
was made in the payment of interest
on outstandings bonds.
Washington Railway & Electric Co.
The Washington & Great Falls Elec.
| trio Railway Co. was incorporated in
1892 by a special act Of Congress, and
acquired at that time the Great Falls
terminals and waterpower rights.
1t was reincorporated as the Wash.
| ington Railway & Electric Co. Febru.
airy /, 1902, and at once began nego.
tiations that led to the purchase OF
the assets OF the Washington Traction
& Electric Co.
Plan of reorganization was dated
August /, 1901, with authority to is
sue 1880, 900 first mortgage per
cent 5O.year gold bonds. So 500 900 pre-.
ferred per cent stock and $6,50O,000
common stock, par value 500 share.
Holders of the old w. T. & E. Co.
collateral trust bonds were to receive
one 81 900 per cent bond. $3.50 in
preferred stock and 5000 in new COM
mon stock. Each holder Of 800 Ger.
tificate of old stock on payment Of
50 cash, received in preferred stock a
like amount, and in addition $500 in
common shares.
ACQUIRES Potomac Electric.
In this way the w. r. & E. Co.
acquired the Potomac Electric Co.,
then giving promise Of great posi-.
bilities, but, of course, not indicating
It's position today.
At the time of the formation of the
w. r. & f. Co.. the Potomac Electric
and the United States Electric Light
ing Co. were engaged in a bitter
struggle, the former to cross into
Rock Creek territory and the latter
Ito keep it out. The result was the
eventual sale of the latter corpora
ton to the w. r. G. E. Co. A mort.
gage was placed on the properties of
the two corporations Of 100000.
February, 1902. the company &C.
CURED the Metropolitan Railway Co,
and the Columbia Railway Co. by deed
in fee subject to their mortgage debt.
The company now owned so miles
What 0f E;rc1