Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-02-15

the Washington Co. its own per cent
bonds for the same amount and ma
turity and secured by a lien Of like
| rank on that portion of the property
of the New Co. which shall be conveyed
to 1t by the Washington Co. hereunder,
and securing the said consolidated q
per cent bonds so redeemed or paid,
for which the New Co. shall on such
redemption or payment date be re-
Sponsiblc, as above, or 80 the New Co.
may create a gcncia and rcf,nding
mortgage secured on all its property,
whereby provision shall be made for the
retirement and cancellation of all prior
mortgage liens against it's property and
issue Hereunder to the Washington Co.
per cent bonds maturing December
|. 1851. for the same amount assumed
rs the consolidated per cent bonds
redeemed or paid as aforesaid
Will Transfer Bus Stock.
"(b) Issue to the Washington Co
l93,420 shares Of common stock plus
The number of shares of common stock
at par equaling the total net current
assets, including materials and supplies
to be received by the New Co. from the
Capital Co. and the Washington Co.
New Co. by Harley r. Wilson. II IS /
shares OF the Bus Co on: of total
outstanding of 21,6l2 shares.
In consideration OF the foregoing
the New Co. shall:
la Assume and discharge all of the
liabilities OF the Bus Co, such liabilities
TO be S550,000 of bills payable and cur
rent liabilities arising in the normal
conduct OF the business
"tb) Obligatc itself to pay to Harley
p. Wilson. his executors, administrators
or assigns, the further sum of $596000
plus interest thereon from February /,
1928.
Ninth. The foregoing apportion-
ment OF the stock of the New Co, is
based on the present conditions and
businesses of the participating COM
panies and on the assumption that, IN
the interval before the contamination
OF the foregoing transactions. there will
be no change in the transit businesses,
other than as result of normal opera
tons, and that no distribution VIII be
made to the stockholders OF Capital
Co or the Bus Co, except the regular
dividend payments. at not exceeding the
present rate and that. subject to such
EXCEPTIONS the assets and liabilities OF
the participating companies VIII DC
substantially as appears from their De-
ccmber 81 1927, balance sheets, subject
to variations in the normal course OF
business
Tenth. The Washington Co. will
cause the Potomac Electric Power Co.
subject 10 the approval OF tho Public
| Utilities Commission. 70 enter into
power arrangement with the New Co,
(Which may include lease by the
Cf AZ
which the New Co. will have obtained
as being appurtcnant TO the transit
properties to be acquired by the New
Coz on terms which will create situa-
ton such that the net cost OF power
to the New Co. latter crediting am
rental payable To the New Co. for its
power properties shall not exceed the
present aggregate cost OF power 10 the
Capital Co and Washington Co. and
The New Co shall take over all existing
contracts of the Washington Co. for
the sale Of power TO other railway COM
panieS This entire agreement is con-
ditioned upon such approval of said
commission
"E.evcnth II is understood by the
parties hereto that an agreement shall
be concluded with the Public Utilities
Commission establishing the value fol
rate-maklnC purposes of the transit
properties to be acquired by the New
Co. directly or through stock owner
ship at $50 000 600 and that said SUN
plus additions on account Of capital
expenditures due TO additions. better
nents and changes in track arrange
ment. including capital expenditures
made necessary by the uniticat!on of
the properties shall be the rate base
upon which tho New Co. shall be en-
titled - earn return Of per cent: