The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1919-07-28
.W.R.&E.STOCK SALE
MAY END INMERGER
Continued from First Pase.l

e. NOOnLlnueQ from FlTSI EdBS.J
= and far better service through ability
to use cars freely on any line.
Utilities COmmlssiOn Could LegaliEe.
Conrad Syme, counsel for the Public
Utilities Commission, is strongly OF
p the opinion that the commission has
power to legalize a merger Of the two
lines, despite the La Toilette law, which
prohibits one utility obtaining control
of another The law creating the
Utilities Commission gives authority
to approve unification of utilities or
control of one by another If the com
mission deems this best for the public.
There is not the slightest sign that
Capital Traction interests have any
notion of buying sufficient stock OF
the w R and Z. to control 1t
through combination with stoclIhold-
ers Of the latter who would favor
q merger.
Capital Traction people have-in the
past favored a merger upon terms con-
sidered fair to them, but they are not
initiating any scheme Of that kind
now. Several plans are under discus
sion among individuals and groups:
Several Plans For Merger.
Ito organize a new company
which will issue new shares of stock
to stockholders Of both Capital Trac-
ton and W. R. and z. either upon an
arbitrary basis or upon valuations
soon to be announced by the Utilities
Commission, a plan very complicated
and difficult because it would mean
the consent of thousands Of small
stockholders in both companies.
Purchase by interests friendly to
the Capital Traction of sufficient
stock in the other line to control the
situation and enable the Capital Trac-
ton to dominate the W. r. & E. This
would entail complete reorganization
OF the latter road, including its Of
hcers and directors
= 3-Purchase by the bankers of the
common stock they are to sell and the
voting of that stock in conjunction
with other stockholders, so that a new
board. of directors and new officials
may be elected, the new organization
60 lease its lines to the Capital Trac-
ton or enter into some sort of agree |
ment that will result in unification.
The present officers and directors |
sOf the W. R & E. hold office until |
January next when the annual cleo |
ton OF officers and directors takes |
place To wait until that time, how |
ever, may be ruinous in some direc-
itions, and 50 talk is going on today |
that the organization now operating /
the W. R. z E may resign if any
good plan OF unifcation can be |
brought about which they regard as l
fair to the interests they represent.
Bankers VIII Keep Stock.
All the indications are that the |
bankers will take ownership Of the /
81, 500 shares of common and that the
proposed sale is simply formal. The |
sale could have been brought about /
some time ago. The out-of-town and |
local banks made loans on the stock
TO about so per cent Of it's face value,
and they wish to obtain about SO for
it il possible. They would probably
take less.
One handicap to turning embryonic
negotiations for merger into strong
probabilities is that the Utilities
Commission has not completed it's val
nations Of street railway properties,
but Is working hard to make its for
NAL announcements in a short time
With these valuations as some sort of
a basis to proceed from negotiations
among fnanciers and big and little
stockholders Of both lines may pro-
coed with greater hopes of success.
The commission desires to make
valuations at the earliest possible
OdAGs 90 A4Ad| II may nave q OASIS
work upon in considering the increase
Of fares asked for by the Washington
Railway and Electric Company.
The petition Of that company re-
mains Enacted upon wholly because
the Commission is nearing an agree
ment on valuations and lis confident
that with these completed it will be
in position to handle all future street
railway questions with more clear
ness and comprehension. Heretofore.
its decisions on rate matters have
been given under emergency condi-
tions. II now wants to proceed on
q more permanent basis.