Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-09-27


but indicated that it was soon found
there could be no agreement as to the
terms Of sale
No Definite Merger Proposal.
mo definite proposal of a merger was
ever made to the Capital Traction Com
pany by representatives of the Washing
ton Railway and Electric Company. or
considered by it's directors" Mr.. Hamil-
ton said.
I'm personal conversations between
myself and one of the directors of the
Washington Railway and Electric Com
pany had during the spring and fall OF
1911 the desirability of having the roads
under one management was several times
informally discussed, and at the last con-
verSation the statement was made by me
that 1 would not recommend any merger
on a stock basis and did not think that
the Capital Traction Company would con-
slider any such proposition; that person.
ally l would favor the purchase of the
stock of the Washington Railway and
Electric Company at it's then market
price, which was, according to my recol-
lection, about IS for the common and
Sc for the preferred, and that such pur-
chase when approved by the stockholders
of both companies, should become opera
tive only when submitted to and ratified
by Congress.
Discussion Never Reopened.
The director of the Washington Rail-
way and Electric Company referred to
said that a sale of the stock of his COM
pany would not be considered for mo-
ment by the men who held the control
ling interest, and there the discussion
ended, and it has never been reopened.
Except from newspaper statement and
street rumor l know nothing of the Or
ganization and purposes of the Maryland
and Virginia Company.
THE inclusion of the Capital Traction
Company in or under holding company
has never been suggested to me or to
our board of directors, and has never
been considered by us.
Personally l do not favor a grouping
of the public utilities of Washington in
any holding company.
Such companies have not, in other To-
calities. as / read their record proven
very beneficial or useful either to the
companies controlled or to the people.
They are often overcapitaliZed and stock
issued on unequal levels; opportunities
may be afforded for promotion costs and
speculative transactions, and their man.
agement is sometimes so directed as to
prevent that fair insight and scrutiny
giving more certainly each year to public
utility corporations, and which the peo-
pie are now exactins.
Serious Bars to Merger.
THE merger or unification of the two
street railway companies under one own
ership or control has, / know, from time
to time been the subject of newspaper agi-
tation and popular discussion.
This proposition is hedged around with
difficulties, serious and perhaps insur-
mountable.
If such a unification could be accom-
plshed under an arrangement that would
give full, fair and equal protection to all
alike; would safeguard the
public and would meet the approval of
Congress, or public utility commission
created by Congress, l can see in it GER
tain advantages both to the traction in
terest and to the public.
Under one management the cost of
operation would be materially lessened:
a better routing of lines could be worked
out, with very slight changes in or addi-
tons to existing trackage; congestion now
existing at certain points might be mate
rally diminished by such new routing; the
question of free transfers would be prac-
tically eliminated legally and without too
fare would entitle a passenger to a con-
tinuous ride in the same general direc-
ton, and any loss to the company by
reason thereof would be covered by de-
II
Approval of Congress Essential.
eff any such merger or unification is ever
attempted it must. to succeed. be under
an agreement that would meet the APP
prevail of Congress, and that would be
equal and fair to al stockholders and 10
the public; and the standard of value
should be the full, fair and equitable
value and condition of properties, unin-
f1uenced by stock board quotations or
inflated estimates.
The Capital Traction Company is not
seeking any such union and is content TO
go along under its present charter en-
deavoring to meet reasonably the rea-
sonable demands of the public, and will, |
j am sure, never consent To a merger or
union of any kind whatever that does
not give full and equal protection alike |
to all of its stockholders.
al am not opposed to the creation of a |
public utility commission, and ] think |
that the Commissioners of the District OF
Columbia should constitute that commits |
sion AS governors of the District the !
have already, and neces- |
sarily some control over the traction !
They are usually selected 1
with care and are men of standing. |
ability and integrity, and would. in my !
,uinion better serve the interests oP the |