Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-07-18
SMALL Chancellor
STREET CAR MERGE
Conditions Less Likely Than
When Negotiations Were
Previously Carried On.
FAVOR BANKERS COMING
BY I. A. FLEMING.

Negotiations looking 10 consoli-
dation of the Capital Traction Com
pany and the Washington Railway
and Electric Company were carried on
some months ago for a period of six
months, in an earnest effort to find a
practical working basis, never during
that period with the slightest show OF
accomplishing the desired end.
Negotiations were conducted by
George E. Hamilton. for the Capital
Traction Company, and NJ. Z. Allies
Electric Company. AT that time the
Capital Traction Company was will
ing to go into merger. probably
very much more so than it will be at
this time. The company's stock was
then on a per cent basis. and the OPP
Grating cost of the Washington Rail
way and Electric Company was very
much less than it is today.
But the war has benefited the Capt.
tai Traction Company, with it's short
hauls while the abolition of the ticket
system and the substitution Of the
five-cent fare have enabled the COM
pany to place it's stock on 6 per cent
basis. The burdens of the Railway
company have resulted in the elm
ination of the dividend entirely from
the common stock.
The stock of one company is many
points below the price considered as
reasonable during the merger nego-
tiations.
Naturally it would be a good thing
for the city if there were but one system
it would be easier to deal with, but
there are so many interests involved
that a merger is not matter of the
near future. The public. the share
holders whose capital is invested, the
bondholders. really creditors of the
company: Congress and the utilities
commission all must be consulted and
satisfied before any agreement can be
reached.
The position of the bankers pro-
tective committee in it's efforts to
bring about a solution must be neu-
trail to large extent The personnel
of the committee, in their capacity
of the community at large. The COM
mittee must look after the interest
of the public and of the street rail-
road shareholders. and also after the
interests of Washington.
1t is representative committee
and as such should be given due con-
sideration by the utilities commission.
citizens associations, the public
street car officials and the lawmakers
generally.
Want Bankers to Come.
\ Bankers are very much interested
over the probability that the Ameri-
can Bankers ASSOCldtIOH may hOIu
its annual convention in 1920 in this
city. The annual sessions usually
last for four days. which means that
5000 delegates and their families Will
practically monopolize the city for
that period and leave behind them
when they go practically a million
dollars as minimum estimate.
Washington seems to be the center
Of the world right now: it is also the
home of the federal reserve board and
the Secretary of the Treasury, SO that
the bankers will be brought in close
contact with the Treasury Depart
ment and the officials who regulate
the affairs of the nation.
Congress will probably be in session
in September. 1920, and the banking
fraternity will have an opportunity to
give the lawmakers frst-hand informa-
ton as to any reforms or changes de-
sired in the banking laws of the nation.
At the meeting Of the District Bank
ers' Association on Wednesday next,
when the matter of extending an invita-
ton to the A. B. A. to convene here in
1920 will be decided, data will be pre-
scented showing the cost of the enter
tainment of the convention at Kansas
City and the attendance and the f1nan-
cial results to the city.
Washington bankers have enjoyed
number Of very prosperous years, and
with forty going institutions should
have no trouble to raise the necessary
guarantee for the entertainment Of the
visitors and the officials Of the associa-
ton.
Bonds Were Active.