Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-26
future OF W,B.gA.
REMAINS N DOUBT
Recent ecati bSdl q.
wives INterssG h HI /,
RalhWas eAeA ~
Special Dispatch % Tl.a aasr.


BALTIMORE, july a6.-@pMatlAA3Hn
concerning the future Of the Wakiaing.
ton, Baltimore d Annapolis Electric
Railroad, now In reeeivership, has beGn
actively resumed IN local financial ei1-
cles as the result OF the decision hied
July IL by Judge Morris A. soper hold
ing that neither the stock Of the An
napoliS d Chesapeake Bay Power Co,
concerning which there has long been
doubt, nor its tangible property be-
longs under the mortgage which secures
the $7,306, 900 of Washington, Ealti-
more 81 Annapolis Electric Railroad
first IS now outstanding
The Cleveland Trust Co.. trustee
under the mortgage dated March 1,
1911, had asked leave to intervene in
the case of the r. e. Duvan Co. against
the Washington. Baltimore 81 Annap-
oils Electric Railroad Co., following the
filing of which last January the court
appointed George WeemS Williams as
receiver for the road and petitioned
the court for an order directing the re-
ceiver and the railroad company to de-
liver to it as trustee certain shares Of
stock, as follows: Thirty-nine thousand
two hundred and seventy-one shares no
par of the Annapolis & Chesapeake Bay
Power Co.. 10 shares 500 par of the
Terminal Real Estate Co. Of Baltimore
City and 400 shares, par value $50.
OF the Maryland Development a.
Realty Co.
Trustees Contention.
The contention of the trustee, acting
for the first mortgage bondholders, who
have formed a Protective Committee,
was that the original granting clause
of the mortgage specified that all after
acquired property was to be covered
by the terms of the indenture.
Creditors of the railroad and the
Bondholders Protective Committee OF
the Baltimore & Annapolis Short Line
Railroad Co., however combatted this
view. and the court held that the mort
gage covered only that property used
in connection with the operations OF
the railroad company, and that since
there was no evidence that the tangible
property or the Annapolis d. Chesa-
peake Bay Power Co. had been so used,
it did not belong under the mortgage.
The court also held, touching the
Terminal Real Estate Co., that its
shares Of stock and its real estate have
no part in railroad operations and are
held free OF the mortgage, except for
that part of the Short Line north Of
Shipley. AS to the real estate of 0
DOCK Value OF Sl5,TS0.l6, held by the
Maryland Development q Realty Co..
in Annapolis, the court held that 1t
belonged under the mortgage.
Notice Of an appeal from Judge
Soper's decision had already besn given
by the trustee on behalf Of the Wash
ingotn, Baltimore & Annapolis first
mortgage bondholders.
OF the $7.3o8o00 FIRST SIS outstanding
the Consolidated Gas Electric Light d
Power Co. owns about 81 100000 and
the remainder are in the hands of the
public.
Tentative Offer RumOreA.
There has recently been some buying
of these bonds in the local market, but
members Of ths Protective Committee
state that no significance attaches to
the buying. Until there is a final de.
cision on the power company stock, and
the receiver has fled his first report
of operations with the court, which win
probably be some tire early this Fan,
it was learned yesterday. no intimatiofi
can be gotten as to what may be the
probable future of the property.
There have been rumors about the
financial district that q tentative offer
for certain OF the railroad properties
located in Washington had been made
recently, but members of the comm;ttse
decline to confirm or discuss the mat.
ter.