Evening star. [volume] (Washington, D.C.) 1854-1972, 1939-07-11
Committee Formed
To Guard Holders
OF Two Bond Issues
Protective Step Taken
Pending Court Hearing
On Anucostiu Liens

At the request of large holders of
Anacostia & Potomac River R. r.
first 5 per cent gold bonds (un~
guaranteeO and City g. Suburban
first mortgage per cent gold bonds,
a protective committee has been
formed to look after the interests of
all the bondholoers who may ask
such representation.
The new committee is composed
of Thomas B. Butler, chairman, vice
president of the Safe Deposit g.
Trust Co. of Baltimore; c. F. Jacob
sen, president of the National Metro
politan Bank, this city; Joseph B.
Walker, vice president, Mercantile
Trust Co. of Baltimore, and Henry
S. Baker, treasurer, Johns Hopkins
University, Baltimore
There are now outstanding 81
097,000 principal amount of I'M
guaranteed Anacostia & Potomac
bonds and S1,676,OOO City G.
Suburban bonds. The number of
bonds held by the several institu-
tons in which the members of the
Protective Committee are officers,
and the par value of the bonds
owned or represented in a fiduciary
capacity by each institution, IS
substantial.
The Safe Deposit & Trust Co. has
a special interest in $4,000 Anacos-
tia bonds and S292OOO City &
Suburban bonds; National Metro
politan Bank, Washington, 1000
Anacostia bonds; Mercantile Trust
Co, $1,000 Anacostia and S43 900 City
& Suburban, and Johns Hopkins
University, $4,000 Anacostia bonds.
Letter Sent Bondholders.
The committee has sent a letter
to all bondholders asking their sup
port and offering assistance in any
matters that may arise in connec-
ton with the bonds. 1t will be re-
called that a suit has been before
the courts for several months, in
which certain holders brought
action against the Capital Transit
Co. and the Washington Railway &
Electric Co. over the question of
liability of payment of principal and
Interest of both issues.
The letter just sent out calls at
tentlon to the letter of October IL,
1888. from the Baltimore National
Bank, trustee, which stated in sub
stance that the trustee considered
the railroad companies liabilities for
the bonds, but that the two concerns
had denied such liability.
The matter is expected to come
up in court in the fall. At the time
of the institution of the suits. it
was not considered necessary to have
a protective committee. The letter
states that it is now felt by the
trustee and others that both issues
should be protected by a committee
with power to negotiate with respect
to any matters that may be involved
In the present proceedings.
Bonds Very Widely Held.
The bonds are so widely held that
tiAJ eAILC1A aStioll "OQltl NC
sible except through a protective
committee. The issues involved in
both bonds are Identical, hence only
one committee was considered neces-
sary. The committee does not have
the power to accept or reject any
proposal or plan for the bondholders
without first consulting a majority
of the holders and obtaining their
approval
Many banks, as we'll as individuals,
are interested in the status of the
bonds. The street railway in Ana
costa has long since disappeared.
The property was originally back
of the bonds Since that time it
has been assumed by the bondhold-
ers that the two utility companies
were liable for the bonds, for pay
ment in full, with interest, at ma
turity.
Holders are sending their proxies
to the committee secretary, Edmund
P. cambridge, jr., 1885 Baltimore
Trust Building, Baltimore, Md. On
the Washington Stock Exchange.
Anacostia bonds last sold at 1914
and City & SuburbanS at co.