Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-27
RECEIVER IS NAMED
FOR ", B. "a. LINE
Subsidiary Company Also Is
Taken Over by Order of
U. S. Court.
Continued From First Page)

the W. B. & A. Electric Railroad Co.,
which owns all the stock of the power
company.
This power company receivership
will not prejudice but will conserve
the security of the power company's
bonds. The power company is earning
interest, not only on its bonds. but
on its larger junior Indebtedness to
the Consolidated Gas, Electric Light &
Power Co. of Baltimore, on loans for
construction. This junior Indebtedness,
which itself is fully covered by cor
responding equity in the property, has
best provided additional equity and Sc
curity for the bonds. The receivership
need not prevent or delay payment OF
bond interest and in any reorganization
of the power company or sale subject
to its bonds, the bonds will occupy the
position of underlying bonds"
The District Court of Baltimore was
asked to appoint the receiver to make
It unnecessary for the DEFENDANTS sew
eral creditors to institute separate pro-
ceedings and to guard against unfair
preferences or advantages of one cred
itor over another in conflicting pro-
ceedingS."
The company operates electric cars
running from this city to Annapolis AND
Baltimore, carrying both passengers
and freight 1t was understood that the
proceedings started today will not IN
terfere with the operation OF the COM
pany'S lines.
According to the petition, the COM
pany is subject to lien in the ma
t1lre of q deed of trust executed be-
tween the defendant and the Cleveland
Trust Co. to secure an issue OF S7,5OU.
600 of first mortgage bonds, OF which
81 1903, 900 have been issued and are
still outstanding. 1t is further alleged
that the defendants short line railroad
from Annapolis to Shipley, and It's
short line terminal at Annapolis are
subject to the underlying prior liens OF
two trusts, one for $1,000, 900 and the
other for S732, 600 All of the first trust
bonds and $587 900 of the second have
been issued and are outstanding, the
petition states.
Other Liabilities.
Other liabilities described in the suit
include $222.OO0 owed the j. @. Brill
Co. for 10 two-section motor trains and
s175. 900 due the Baltimore Corporation
Of Maryland, to which the Brill Co. as
signed its interest, for nine comoma-
ton passenger and smoking trains.
The defendant is said to be moepteo
also to the Consolidated Gas, Electric
IlRIlL q EOWcT w. VA A)oAOAAAAS -
sum of 100000 for money loaned 70
the railroad company.
The outstanding capital stock OF tne
defendant is said to consist OF eo'UOo
shares of common stock and 3o,zZl
shares of preferred stock, all OF par
value of $50 each. 1t is alleged tnal
a majority of the stock OF both classes
is owned by the Baltimore Corporation
Of Maryland.
The assets of the company, listed in
the petition, are described as made
ouate to balance its obligations.
THE defendant is insolvent in the
! sense that it is unable to pay either
the principal Of or the interest on its
| indebtedness" the petition states, las
the same becomes due and payable. ano
also in the sense that the amount Of
its indebtedness, secured and unse-
cured. exceeds the value OF all its prop
erty.
'dThe defendants individual creditors
secured and unsecured, unless restrained
by Injunction, may and unless protected
| by appointment of a receiver, must IN
stitute separate proceedings at law OF
| in equity for the enforcement OF tnelI
rights and the collection of their debts. v
The court is asked to appoint the re-
ceiver and instruct him to manage and
operate the company's railroads ano
| discharge its public duties"
The petition states that the company
owns two terminals in Washington ano
operates its cars here under contract
with the Washington Railway q Elec-
trio Co.