Evening star., 1919-08-15
FAvORS MERGING
TRACTION LINES
Commerce Chamber Com
mittee Submits Proposal for
Combining Street Railways.
PLAN FOR NEW COMPANY

Merger of the present lines Of the
Company and the Capital Traction
Company into one traction system
Was recommended in a resolution
adopted by the public utilities COM
mittee of the Chamber of Commerce
at the rooms of the chamber, Gil
18th street, last night.
The resolution will be submitted
to another meeting of the committee
for f1nal ratification just before a
special meeting of the board of di-
rectors of the chamber called by
President Harper for August 21 to
consider the report. If passed by the
board it probably will be sent direct
to Congress. If not sent to Congress
it will be sent to the Public Utili-
ties Commission, and by that body
forwarded to Congress. Either step
will lead to its proper presentation
Mr.. Harper said.
Text Of the Resolution.
The resolution, as presented by
Chaplin Brown and amended by
Charles w. Darr, follows:
The committee on public utilities
having met pursuant to the resolu-
tion of the board of directors of the
Washington Chamber of Commerce to
consider, in the interest Of the gen.
era1 public, the consolidation of the
two street railway systems, after ex-
tended discussion recommends to the
board Of directors a consolidation OF
the two systems, approximately upon
the following lines: The exchange OF
the stock of the present companies
for the stock in new company to
be incorporated with a capitalization
of about $4,000. 900, to be on the basis
Of $112.50 for Capital Traction. $50
for the preferred and $50 for the COM
mon stock of the Washington Rail-
way and Electric Company. -
That the definite and final value OF
exchange of the stock in the existing
companies for stock in the new OF
consolidated company. the disposition
of the bonded and other Indebtedness
and the working out of necessary de-
tails, be determined by~a commission
to be appointed by the Public Utili-
ties Commission of disinterested mer
for the purpose of perfecting the con-
solidation. the figures used in this
resolution being simply suggestive.
Name for New Company Suggested
The new company to be formed un.
der the plan may be called the Ma.
tional City Traction Company. Valu.
ably would give Capital Traction
Company shareholders a controlling
interest in the new company.
First In any merger of this kind
must come service to the public, John
G. Capers said.
Mr. Capers asserted. but to serve the
public is the primary aim of any con.
solidation such as proposed. If we
put such plan up to Congress and II
doesn't pass we must put it up to the
public-there is the last court of ap.
peal"
President Harper, author of the plar
of the chamber for consolidation o,
the companies, said he did not wisl
his name used in connection with tn,
plan and preferred that hereafter i
be known as the Chamber Of Com
Details of the consolidation must b,
worked out according to the resolu
tion by men not financially interested
in either traction company. It wa.
said last night that such a committe.
can be found in short time and tina
the Public Utilities Commission, a.
recommended in the resolution, shoult
select this committee.
To Include Power Company.
In reply to question of Edward
b. Dean. it was stated that stock ir
the Potomac Electric Power Company
now allied with the Washington Rail.
way and Electric Company, would bs
turned over to the consolidated com.
pany under the new arrangement. J
M. Denty questioned the willingness.
of holders Of Capital Traction Com.
pany stock to go Uneven at the price
of $112.50. with holders Of practically
worthless" stock in the other road
'1t would hardly be fair" he said, "to
force holders Of dividend-payine
stock to take shares In an enterprisf