Evening star., 1921-05-20
HOPE ABANDONED
| FOR A VOLUNTARY
TRACTION MERGER
Utilities Commission Reports
Differences Too Great to
Be ReconciIed.
FIVE SCHEMES FOR UNION
OF SYSTEMS SUBMITTED
capital Company, in One Proposal,
Tells Board 1t Is Willing to Run
Under Reduced Fare.

G.
All nope OF bringing about a VOL
uhtary merger of the Washington
railway and Electric Company and
the Capital Traction Company was
abandoned today by the Public Utili-
ties Commission.
Inc commission issued a statement
outlining. in brief, FIVE plans Of
merger that were proposed and
.nresned out in the conferences be-
,S en agents OF the companies and
month. 'Ae poS'
The statement concludes with the
observation that the differences be-
tween the companies ARE so great
as to be irreconcilable"
Willing to Accept Reduced Fare.
In its second plan for consolida-
e,on, submitted TO the conferees, the
Capltai Traction Company told the
commission it is able and willing to
operate under present conditions at a
reduced rate of fare. On this subject
the Capital Traction heads stated
We fail to find in the plans sub
mitted any reasonable assurance of
any considerable reduction in fare.
The Capital Traction Company. as
now directed, and under existing con-
dltions. will continue to give good
service. and is able and willing to do
so on reduced fare"
Control Is Stumbling Block.
1t is apparent from a study of the
plans for merger presented by the two
companies that the question of
which would control the united sys-
TEN was the one big stumbling block
Before giving out the statement at
the District building the Commission
ers sent copies of il to the chairmen
~ hn
committees.
Now Up to Congress.
The only remaining possibility for
with the committees of Congress. And
even there the drafting of legisia-
tion on the subject probably will
prove as difficult a job as that faced
by the Commissioners in attempting z
to get the companies to unite volun-
tariiy.
The statement of the commission
contains probably the most compre-
hensive exchange of views that has
ever been given the public on the
question of merger The statement
is signed by the six conferees as
Charles w. Kutz and Commissioner
James F. Oyster: for the Washington
Railway and Electric. William F.
Ham and Milton E. Allies: for the
Capital Traction Company. George
Z. Hamilton and John H Hanna
Commissfon's Statement.
For use as one element in the de-
termination of the relative values of
the properties to be included in the
proposed merger. each company un-
dertook to inventory and value all of
the property IN its possession on
June 80, 1914, both within and with
out the District of Columbia. which
was not included by the Public Ctili-
ties Commission in its determination
of the cost of reproduction of the
companies properties as of that date.
using for the purpose of this valua-
tion the same unit prices as far as
possible as were used by the commits
sion These priced inventories as pre-
pared by the companies were brought
up to December 81, 1920. by the in
erty that had been made between
June 80. 1914. and December 81. 1920.
and at the second meeting Of the con-
ferees on April 10. 1921. these in
ventories were presented and ex-
changed, so that each company could
examine the compilation made by the
other. These inventories as submitted
by the two companies showed the
following values arrived at on the
basis indicated above:
CAPITAL Traction Company. .$lo .U0,uoi.t
Washington Railway and Electric
Company (including all its
subsidiary street railway com
panies and the Potomac Electric
Power Company ............ 39.o10.scO. IL
$55.779.257 SC
At a subsequent meeting of the con-
ferees. each company submitted plan
Of merger based upon these values.
which are quoted in full below:
Proposed Merger Plan.
Washington Railway and Electric
Company, Potomac Electric Power Com
pany and the Capital Traction Com
pany.
The Capital Traction Company stock
at par in first preferred cumulative Z
per cent stock. participating in earnings
after per cent is paid on common.
Voting power.
Washington Railway preferred stock
at 7l.42S5 in second preferred cumula-
tive per cent stock. participating.
Voting power.
Washington Railway common stock
at so in common stock. No voting power.
First preferred 7s............. 81. 900, 900 90
second preferred 7s............. 6.071, ,4..20 co
Common stock ................. 3.9OO.OOOo0
s21,971. 42e 90
Second preferred. to be held for
future needs ...........-..... S.o2S,5ISOo