Evening star., 1915-05-15
Unification of Washington's
Two Systems a Possibility
of the Next Congress.
CONFERENCES BEING HELD
TO DISCUSS THE PROJECT
Capital Traction Company Would Be
Taken Over-No Additional Is
sue of Securities Contemplated.

\ unification of the street railway
systems of Washington is one Of the
possibilities, perhaps probabilities. of
the next session Of Congress.
Conferences with that object in view
have been and are being held by rep
resentative interests Of the Washington
Railway and Electric Company, the
Capital Traction Company and the pub
lie utilities commission. 1t Is under
stood that some progress has been
made
Under the plan proposed there would
be no additional issue of securities, one
Of the Objectionable features Of previous
efforts in the same line. While not fully
developed. the present plan contem-
plates that the Washington Railway
and Electric Company. acting as the
active promoter of the unifcation.
should take over the control of the
Capital Traction Company, probably by
lease, guaranteeing. in an effective
manner, to pay 5 per cent regular divi-
dends on the capital stock of the COM
pany and all fixed charges
| 1t is pointed out that this would re-
| duce operating expenses very largely,
| as the official staff of the Washington
| Railway and Electric Company is ample
! tens; would bring about whatever
changes may be deemed advisable by
the utilities commission in through
| routing and would make for the long
lines.
Object Sought Years Ago.
A few years ago the Washington It'll
i tiles Company was organized for the
purpose of bringing about consolida-
| tion of all public utility corporations
in Washington. but opposition of the
Commissioners of the District and
| among members OF the House of Rep
resentatives and the passage Of the
La Toilette amendment. providing that
no local utility corporation could hold
| more than 20 per cent Of the capita /
| stock of any other utility company
| checked it's progress.
| The La Toilette amendment demands
both the consent of the public utilities
commission aNd of Congress for any
| movement in the line OF unity hut the
| proposed plan would avoid its provi-
sions except the consent Of the utility
| commission. Yet the plan under dis
| cussion also contemplates the approval
| OF Congress.
| The utilities commission has gone on
| record. IN the past, as favorable 10
] municipal ownership. II Is claimed
| that it's second choice in the matter
I favors one control.
At the time uniflcation was talked OF
| in 1912. the Capital Traction interests
! were understood to be unalterably op-
| posed to any movement having for IT'S
| object jointure of interests In the
| interim between then and now the diyi-
| dend the stock of the corporation
| has been reduced from to a 5 per
| cent basis. and the market value of
| the shares has been reduced until they
| were offered few weeks ago at s8g a
| share.
/ Have Gained Strength Lately.
| In the last day or two they have de-
| veloped excellent strength. and have
now recovered. esa. being bid with no
stock being offered.
| After the removal of the price limt-
| tations on the local stock market
| April Is of this year. Washington Rail-
| way and Electric shares, both common
| and preferred. crossed Capital Trac-
| tion's share price. Since then there
| has been no pressure on the latter
lstock: it has been fairly firm, but only
| in the last day or two has IL developed
! strength sufficient to move UP sharply
! in price.
Rumors have been current on the
| Stock Exchange of some definite efforts
at a unification of the two systems
! under one management, and they have
! now. apparently. taken definite shape
washington Railway and Electric
| shares have advanced in price since
the advent of Clarence p. King az
/ president. practical street railroad
paid on the common stock.