The Washington times., 1919-07-30
FEELERS' OUT
TO MERGE z
D.C.CARLINES
Propose Unification of Capital
Traction and w. R. & E. to
Bring Stabilized Situation.
BY BILL PRICE.

BY BILL PRICE.
High officials OF the Capital Trac
ton and Washington Railway ant
Electric Companies are being Eel
out as to a basis for a possibl,
merger OF the two companies that
would bring about a stabilized situa.
ton enabling Washington railway In.
terests 70 meet what are admitted,
difficult times ahead.
The Public Utilities Commission
will welcome a merger of the two
lines; will even go out Of it's way
to encourage unifcation. 1t realizes
that, this will remove 75 per cent OF
the difficulties the commission has
been struggling with, and must con.
tinue to struggle with, so long az
there are two separate companies in
the field
Gardner Tried Once.
Commissioner Gardiner made an at
tempt nearly a year ago, as a citizen
TO bring the two railway interests
together and almost succeeded in his
undertaking.
Capital Traction interests are not
averse to a merger. They are not sit
ting contentedly over the outlook.
Every well-posted man in Washing
ton knows that the future Is likely
70 Bring about conditions that will
upset ell calculations and that the
best interests Of the public and OF
both railway lines lies in a strong
unification, which will lessen over
head charges OF operation and bring
about Interchange Of cars from one
line to another to meet exigencies.
The Public Utilities Commission is
not asleep, or failing to consider
some possibilities that may over
shadow even the situation that now
exists. These possibilities will be
knotty enough il there should be only
one railway company: almost beyond
handling properly in dealing with
two.
Working on VaIuationH.
comprehending vast work IN the
future the members Of the commits
sion now are working night and day
TO complete valuations of the proper
ties OF the two companies, confident
that these valuations will prove a
basis for fixing fares, or for a bring
ing together the traction interests
that now seem so far apart
Various plans for a merger continue
60 be discussed among bankers and in
railway circles, but they are simply
feelers. One plan put forward is that
merger might be effected upon the
replacement value Of the two lines;
that is. the cost OF reconstruction at
this time. The W. r. & z. has close
10 11s miles of trackage, while that of
the Capital Traction is less than half
Of this. Value Of trackage and equip
ment would both be considered.
Col r. N. Harper, who is chairman
of the joint protective committee Of
bankers holding $2,75O. 900 face value
Of common stock Of the W. r. & E..
soon 20 be put on sale, is hopeful to-
day that something may be done to-
ward a merger, but frankly admits
that so far no plan has been evolved
which may be accepted by both sides.
w. r. and E. Meeting Tomorrow.
The executive committee of the
board of directors Of the washington
Railway and Electric Company will
meet tomorrow, with full power from
the board to act upon pressing mat
tiers.
Friday there will be due S43,750
reemi-annual interest upon SI,T5O. 900
City and Suburban bonds and S46.e5O
interest upon $3.50 900 Of the first
mortgage bonds of the old Metropoli-
tan road. 1t has been practically de-
cided to defer payment OF the in
terest on the City and Suburban lines
on the ground that there is no money
to meet this obligatio-.
A clause in the City and Suburban
bonds gives the right Of ninety days
grace in paying the interest. This
clause will stop any legal proceed
ings looking toward a receivership
until the ninety days have expired
BY that time the Washington Rail-
way. and Electric Company hopes to
have obtained a decision from the
Public Utilities Commission enabling
it to collect higher fares and in
crease fits ready cash.
BOndbOIders May Act.
It might then pay the deferred In
terest II IL does not do so the bond.
holders will undoubtedly get together
20 take protective measures. Most OF
the bonds are held in Baltimore, but
large sums of them are owned by
Washington investors who considered
this one OF the best suburban roads
in the country.
As 70 the interest on the Metropolis.
tan SIS there is little doubt that the
executive committee will find ways Of
meeting il. To fail 20 DO so might
mean prompt throwing Of the entire
system into the courts on an applica-
tion for receiver. These bonds are q
first mortgage on the line from
Georgetown to Fourteenth and East
Capitol streets northeast; part of the
ut. Pleasant line and on the Ninth
street line from u street northwest
20 the wharves, on the Potomac. They
come ahead OF all other obligations
very serious.
These lines are part Of the ". r.
and E, while the City and Suburban
lines are not interviewer in the sys-
TEN by direct ownership, although the
company owns and controls prac-