The Washington times., 1921-06-22
3 MERGER PLANS
Up TO COMMITTEE
OF SENATE today
Senator'S Jones, King and Ball
Each Sponsor Method for
Traction Combine.

rhrse distinct proposals. for the
consolidation OF the Capitol Traction
Company and the Warrington Rail-
way and Electric Company ars before
the Senate District Committee today.
The measure introduced BY Senator
Wesley Jones of Oregon contains AS
its major feature the District Com
missioner plan Of taxing the net
operating income OF each traction
company In such way ~ to squalise
their earning power. The purpose Of
this provision is TO eliminate the
bjeetion of the stockholders of the
Capitol Traction Company. which 10
now earning more on Its capital stock
than the w. r. and f., TO merger
with the latter company.
The Jones' bill authorizes q merger
of the two companies whenever 7b
per can't OF the owners of the stock of
each company agrees to the consoiida-
ton. The Public Utltties Commission
Of the District must approve the terms
OF the merger.
~ IL there are any dissenting stock
must make an sppraisement OF their
shares within sixty days after the
merger.
SENATOR BALLS BILL.
The bill sponsored by Senator Ball
provides nrst of'ail for the merser OF
the washington Railway and Electric
Company and the Potomac Electric
Power Company. II then authorizes q
traction merger on practically the
same basis as is contained In the
Jones' bill
Senator Kings measure is entirely
different.
The attorney general Is directed to
compel the distribution OF the shares
of capital stock of the Potomac Elec-
trfc Power Company, presently held
by the Washington Railway and Elec-
tric Company" to the holders of the
shares of the capital stock of the said
Washington Railway and Electric
Company In proportion to thsir sew
eral holdings of the shares Of said
railway company.
The King bill also contains this
paragraph:
"The Capital Traction Company Ia
hereby empowered and authorised to
condemn to its exclusive or partial
use of any street railway track
within the District of Coiumbia and
to make the necessary connection
WIN Any cuth hfASh 6ao 70 .eN'Nh
lied to institute and maintain the
necessary legal proceedings for said
purpose"
The bill then provides for a num-
Der of new routes, or extensions of
present routes and also makes the
maximum fare of the company.
BOND ISSUE EMPOWERED.
Tho final clause In the bill author
ICES the Capital Traction Company
to acquire by purchase or otherwise.
the outstanding bonds OF the wash
ington Railway and Electric Com
pany and also it's property and fran
chises For this purpose 1t Ia su-
thorixed to issue an equivalent
amount of its own stock. or may
issue bonds. In case the Washington
Railway and Electric Company shall
default In the payment of the in
terest on it's bonds. and such de-
linquent bonds are reduced to tudg-
ment the property and franchises OF
said Washington Railway and Elec-
trio Company shall be sold to satisfy
such Judgment. The Capital Trac-
ton Company at such sale may pur-
chase the property and franchises of
the Washington Railway and Elec-
trio Company at a price not to ex-
ceed such judgment or at any Lesser
price than which such property and
franchises may be sold