Evening star., 1927-05-20
HOPE TO PURCHASE
FAIRFAX RAIL WAY
Nearby Virginia Citizens Are
Faced With Possible Aban-
donment of Division.

Faced with The possibility of aban
donment of service in the near futur
on the Falls Church Fairfax division
of the Washington-Nirginia Railway
which was sold at auction 10 day
ago, leading citizens of that territor,
are making a determined effort t
form a company TO take over the linz
10 insure continued service and t
preserve the rail facilities as a factor
in the future development of nearb,
Virginia
Thomas +. Keith of Fairfax ant
NJ. e Church of Falls Church have
obtained an option until June l under
which they have the opportunity OF
acquiring the Falls Church-FairfaX di
vision for $150,000. the amount ii
brought at the auction sale.
Division to BE Closed.
c. r. Hinchman of Philadelphia
from whom the option was obtained,
has indicated an unwillingneSs to CON
tinue operation of that part of the
system after June !, which means
that II the people OF FauS Church,
Fairfax and adjacent communities DO
not rally behind the movement TO
form local corporation TO buy and
develop the line, application probably
VIII be made TO the State Corporation
Commission by the present owners TO
discontinue service and dispose OF the
physical property.
While there has been no definite de-
cision to this effect, it was said today
that Mr.. Iiinchman has expressed
that opinion.
Disposed of Separately.
The Mount Vernon division of the
railway, which passes through Alex
andria, was disposed of as a separate
unit at the auction, and Gardner L..
Boothe, representative of the present
owners, said no definite plans for the
future Of that line have been formulat.
ed. The bondholders of the Mount
Vernon division will meet in Phila-
eielphia Monday to discuss the s1tua-
ton with respect to that part of the
system. Mr.. Boothe said.
plan under which the people Of
Falls Church. Fairfax and the area
lying between Falls Church and
Rosslyn could finance purchase of
that division of the rail system has
been mapped out by Mr.. Keith and
Mr. Church, and within the past 4S
hours they have interested consider
able number of citizens in the project
viii Meet Tonight.
Prompt and concerted support by
the residents of the communities af-
fected viii be necessary. however,
and. with that realization in mind,
there will be a joint meeting tonight
of the directors of the Chambers of
Commerce of Fairfax and Arlington
- ~ Sl,,,- at oh hn
proposal will be outlined. 1t is eX-
pected the directors of each chamber
will be asked to appoint a commit
tee to aid in interesting a sufficient
number of people to finance the pur-
chase Of the Fairfax and Falls Church
line.
The option given by Mr.. Hinchman
calls for payment of $50 900 cash and
the balance within 10 years, secured
by first lien bonds at per cent, and
payable as follows: $4,000 in two
years, $4,000 in three years, $4,000 in
four years and 5000 annually there
after. all to be paid in 10 years, with
the privilege of anticipating pay
ments.
$4,000 Is Subscribed.
AS the result of meetings held Wed
f1CSO1g AiiS III at btlC OliICS III MI. hSIlI
in Fairfax, and last night at the office
of Mr.. Church in Falls Church, $25, 900
has been subscribed between the two
CenterS. 1t is the aim of those who
are fostering the plan to raise $4,000
in Fairfax, $4,000 in Falls Church
and the remainder of the first 100000
that is needed from the territory be-
tween Falls Church and Rosslyn. This
would cover the cash payment and
funds on which to operate at the out
set.
The financial outline also calls for
second mortgage of 5000, 900 and for
an issue of capital stock consisting of
1000 shares of no par value. The
urgent matter, however. is the raising
of the first mortgage of 100000, with
which to carry out the option by
June l.
Plan Is Outlined.
Of the second mortgage of $2O0, 900,
the first 100000 would be sold at par
on a cash payment of % per cent and
25 per cent every four months, evi-
denced by the note of the purchaser.
bearing interest. The purchasers of
these bonds would receive one share
of capital stock for every 800 of
bonds The remaining 800, 900 of the
second mortgage would be issued as
needed for the purposes of the COM
panv and sold with or without stock.
The sponsors of this effort to have
the people along the line to Fairfax
organize it for the benefit of the com.
munity is stated in the following
words in the outline of the plan:
THE purpose of the purchase of
this road is to insure continual opera
tion between Washington and Fairfax
not with the expectation of profiting
on the operation of the road, but for
the benefit of the patrons and those
dependent upon it for transportation,
and to insure its operation strictly in
the interest of the patrons. devoting
the income as far as possible, after
n reasonable return upon the invest
ment, to the betterment of the trans.
portation facilities. No watered stock.
excessive salaries or financing opera
tions will be charged against the road"