Evening star., 1930-06-27
HOLDERS OF BONDS
WILL RECEIVE $50
Disbursement to Investors in
Railway Firm Securities
Is Announced.
BY EDWARD C. STONE.

BY EDWARD, c. STONE.
The large number of local bondhold-
ers in the Washington. Alexandria &
Mount Vernon Railway Co. are soon to
get $50 on each 81 900 invested. and
probably similar disbursement in 1881
This important announcement comes
from the bondholders' protective COM
mittee, which has been acting for the
owners of the first mortgage per cent
bonds ever since 1921. The committee
consisting Of William G. Baker, jr.,
and Lewis H Parsons. has just made
its report Samuel j. Steele, vice pres
tdent of the Fidelity Mutual Life In
Eurance Co., the third member of the
committee, died very suddenly last
March
These bonds are very widely held in
Washington and vicinity. On May 10,
1927, the committee purchased all thC
rights, privileges and properties Of the
Washington, Alexandria e. Mount YER
non Railway Co. at public auction in
q receivership suit brought for the pur-
pose of forecloSing the aforementioned
mortgage. the bonds deposited with the
protective committee being used to
make the purchase. The protective
committee has represented bondholderS
to the extent of S2.376,000 out of a
total issue of $2.5o0000 secured by the
mortgage, and it was found necessary
by the committee to continue operation
of the railway until such time as it
could be disposed Of A new company
was formed, known as the Mount Yer
non. Alexandria g. Washington Rail-
way Co.
Could Not Make Road Pay.
In its report, just made public, the
committee states that it was found that
the railway company could not be
made q successful or paying operation
owing to the large number OF privately
owned automobiles constantly used by
former patrons of the road, and also
owing to bus competition. which has
been the cause of the failure OF so
many interurban railroads during the
RaSt decade"
For several years" the committee
continues, every effort has been made
to dispose of the property as whole,
as the Scrapping of the road Nould not
only have been very expensive ana
tedious process but owing to franchise
requirements calling for removal of
rails and restoration of depoSiting bond
holders would not have received nearly
so much as they will now receive from
the sale below set forth:
I'VE have, after long negotiations,
sold to the United States Government
that portion of the railway extending
from Alexandria City to Mount Vernon,
parts of which will be used in connec-
ton with the Memorial Boulevard from
washington to Mount Vernon, and TINS
sale together with certain recoVerleS
from rails, overhead construction, etc,
will net approximately $4,000.
Second Important Deal.
'Since concluding arrangements for
the above sale we have been making
an earnest effort to dispose OF the
stock OF the railway company helo
by us, or that portion OF the railway
from washington to Alexandria, va,
and we have recently sold this stock Tor
SOS 200 net. of which $4,000 has been
paid in cash and notes extending over
period of two years given by the pur-
chaser for the balance. These notes
are secured by all the stock OF the
company.
Between now and october Is it is
the earnest hope and expectation OF the
committee to make Distribution OF
$50 on each 81 900 certificate OF de-
posit. and some time during the year
1891 YOUR committee will make an ap-
proximately similar disbursement"
The statement Is signed by the two
members of the committee which mas
Its headquarters at 1922 Walnut street,
Philadelphia, Pa.
Potomac Power Profits Gain.
The Potomac Electric Power Co. re-
ported today to the Utilities Commis-
sion that net earnings in May amounted
10 $340. .805 Al, against 1919, ,359.34 last
wear, or a gain of $21 ,446.07. Operat-
ing revenues for the month amounted to
1897, ,52634. against $T87, ,995.l9 year
ago. a gain of 49,53l.15. Revenue de-
auctions required $450.009.95, COM
pared with $407,2l6.38. an increase OF
$42,7e357. Net operating revenues
e9Q7 5IE a0aiTSt G220 772 ri a
year ago, a gain Of $6,737.5S.
For the flve-month period the Poto-
mac Power Co. reported operating reve-
nues of S443S, ,959.30, compared with
R4176,071.09, an increase of 1852 ,SS8.2l.
Revenue deductions called for 81, 2,l93,-
1920. compared with $2098, 1929, a
difference OF $94, 1882. Incorporating
revenues reached the sum of $2,245,-
667l0, against $2,077, ,572.S1 last year,
an increase Of $168 ,094,29. After all
other deductions, the company had .
net income for the fve months OF ST.
Qes 930.52, In comparison with $780,
5000. or gain of $238, 8,560.S4.
Railway & Electric's Net Up.
The Washington Railway & Electric
Co. reported to the Public Utilities Com
mission today a total net income in
May Of $3e3 3,077.25, against $685., ,302.95 in
May, 1929. Operating revenues amount
Cd 10 $4T3, 3,4Oo.3Z, compared Will S01Z,-
69346 in the same month last year;
operating expenses and taxes required
S404 .490.62, in comparison with S4l6,-
1885 a year ago, and operating in
come totaled $68 68,97s7O, against $780,
B1490 year ago.
For the first five months of this year
the corporation reported operating reve-
nues OF $2,343, ,295.72, against $2,479,-
1894 year ago; operating expenses
and taxes totaling 81 ,e33, ,l9S.l9, in COM
parison with $2,025, ,69l.50 last year,
and an operating income OF $410,097.53,
against S451 PAL 81 After all the usual
deductions, the company reported net
income for the five months of $751;
. 1890 against 1901 1855 in the same
period year ago
Local Stocks Steady Today.
Prices on the Washington Stock Ex-
change were about the same as they
closed yesterday. Capital Traction
opened at SO ex-dividend and closed at
Ssls. Railway & Electric sold at 90.
Lanston at us, Mergenthaler at 81,
Merchants Transfer e. Storage pre-
ferred at 97A ex-dividend, Potomac
Electric Power 6 per cent preferred at
Ill and the 5i2 per cent issue at 107ls.
Steamboat rights came out at 1872.
Bonds were entirely neglected
New Director; other Notes.
Benjamin Ourisman, head OF the