The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1920-02-19
WOULD MERGE
WITH W.R.&.E
Capital Traction Favors Idea
Under Service-at-Cost
4 Plan.

The Capital Traction Company IA
vors a merger of the street railway
lines OF the District and their opera
tion under one head under a service
at-cost plan. such as obtains In Cieve-
land.
John II. Hanna. vice president of
the company, in charge of operations.
made this announcement today at the
hearings before the House District
Committee on the merger bill.
Early in January last Mr.. Hanna
told the committee the question of a
merger was gone into at length by
the directors of the company. He
filed with the committee this morning
the platform or plan under which the
Capital Traction Company will 60
into merger negotiations.
Plan of Company.
The company's plan follows:
"A merger should include the
the lines within and without the Dis
trict of Columbia, and the Potomac
Electric Power Company.
"2-The relative earning value or
exchange value OF. the companies
should be the basis Of merger.
sit should include a provision
for service at cost in order that the
rate of fare may be automatically ad-
justed to conditions.
Am exemption from all mu-
nicipal taxes except tax on real estate
and perhaps a part OF the paving tax.
ga management that would COM
man the confidence Of the public and
Of the security holders in which
management the public should have
representation.
Public to Have Voice.
"Sixth-in the negotiation for
such merger by the companies. the
public to have a representative.
"Seventh-The plan of merger so
worked out and approved by the. Com
missioners Of the District OF Column
bia should be submitted to the stock
holders of the respective companies,
and when passed upon by the stock
holders their action in the premises
should be reported back to the Com
missioners, Congress to empower by
act, the Commissioners to authorize
a proper merger and that act should
contain a provision for tho acquisi-
tion of the stock of the minority by
condemnation and payment Of fair
value" ~
Merger Good For Public.
1.-THE sooner . merger Is brought
about the better" Mr.. Hanna told the
committee. 1.-THE sooner II can be ef-
fected the sooner the public will bene-
fit"
Two years ago, informal confer
ences were held looking toward
merger: but because of the widely
different views as to relative values,
and with NO legal authority on which
to proceed. nothing came 1of the con-
ferences, Mr.. Hanna said.
puhlfc,a raDreaentatfVA in tho
proposed conferences would logically
be the Utilities Commission, which
has recently fixed q fair value on the
properties in the matter, Mr.. Hanna
said. He held out the hope that .
compromise on the question Of valua-
" ton may be effected. This would
hasten a solution without awaiting .
decision Of tho courts. which now
have the findings of tho commission
.Nnder consideration
Many Women Stockholders.
The original valuation fixed by the
commission was only for rate-making
purposes. The exchange value would
be determined by the proposed mer-
ger conferees.
Chairman Mapes, Of the House Com
[ mittee. asked II It had not been stated
in the hearings that the controlling
factors of the company were against
a merger
There is no controlling interest in
the company" Mr.. Hanna declared.
Some individual stockholders have
objected, he added There are today
2,046 stockholders In the company, of
whom 1s094 are women.
Congressman Ben Johnson suggest
ed that because Of the large number
of women there may be trouble in
hrtt t,e~ nh
DO you think Congress could pass
Legislation that would cause a volun-
tary mergerT' asked Chairman
Mapes.
Yes answered Mr.. Hanna Con
Sress could pass laws repeating those
laws now existing which prevent a
merger"
"Do you think this mercer Is to be
greatly desired7' inquired the chair
man.
II think so, but somebody IL going
to be disappointed" said Mr.. Hanna.
"A merger will not bring about
those advantages that some people
expect.
Speaking benefts-thcre will be
90 reduction in fare in my opinion
Ny a merger of the companies"
1875 Passenger In One Carr
Chairman Mapes asked Mr.. Hanna
about the service on Fourteenth
street as compared with Others.
The utilities commission has fixed
standards for the company that are
more rigid than any other company
in America has to live up to, Mr..
Hanna said. He cited that they were
ordered to furnish a service on Four
teenth street that would necessitate
the addition OF ffty-siX cars. costing
$4,000 each, and to make only two
rtips day.
The average number Of passengers
on a Fourteenth street car in rush
hours Is as. Mr.. Hanna said. although
they frequently carry 1876 to 1870. The
seating capacity Ia 40 to IS.
Asked about the tic-ups on the sys-
tenn, Mr.. Hanna said that 90 per cent
OF the cups on the lines OF both
companies Is due to the underground
cystem.
PULLMAN IS BETTER.
mich. -