Evening star., 1921-05-20

attempting to ascertain what 1t de-
nominates the "indeterminate equity
in the stock of the two companies is
to distribute between the companies
as nearly as may be the difference be-
tween the par value Of their present
stock issues and the equity represent
ed by the excess Of assets over liza
bilities. using as basis figure the
/ priced inventories of the physical
properties. The method Of arriving
at this indeterminate equity is indi-
Gated in the statement following the
| next paragraph.
In estimating the value of the earn
| ing power of the Capital Traction
Railway and Electric Company. repSe-
sented by the figure Of S2.500.00O yin
the table below. the commission con-
| sidered that under any changed form
of taxation that might be adopted by
the Congress the Capital Traction
Company would still earn at least I
per cent on the fair value Of its prop
erty in excess of the average earning
power Of both the Washington Rail
way and Electric Company and the
Potomac Electric Power Company on
! the fair value Of their respective prop
critics. equal to $150.OOO per annum.
which capitalized al per cent would
give an added value of $2.50O.000 to
the property of the Capital Traction
Company.
NS"ult VI SO"putdtlOhSs
The result of these computa tions is
given in the following statement:
MERGER PLAN SUBMITTED BY THE PUR-
LiC UTILITIES COMMISSION-INVEST
MENT, MI: As REPRESENTED BY REPRO
Capital Tracticn Company. SIG. .209. O37 Al
Washington Railway and Electric
Company combined properties, 1850. 800. 10
s55,77s 257 SO
Capital Traction Company-per
Washington Railway and Electric
Company-per cent Of total. 7O.9iooo
1oo.opee
EQUITY IN STOCK.
Capital Traction Company $9.713. SIS 03
washington Railway and Electric
Company ..................... 1865. .2O9. %
Total equity value ......... SIT .379. .Os7 20
Par value Of stock
Capital Traction Company S1o 900, 600 90
Company ..................... 1900. .ooo 90
Total par value ......... ST 900 600 90
Less equity value ............ 1879. .0S7 %
Indetcrmnate equity ... s9,62O912 "a
Distribution of intleterninatc
equity. on basis Of invest
Capital Traction Company,
81 .0'os of *y.G2O.al2. tt. s2794. .s75. II
Washington Railway and Flee
Il, trie c.,o C%mPany. Con 7o.s'Ho Of 90. NJ ~
SS.62O.9l:f ............... 6.S26. 6.nS7 .J9
s9.6eO.9lo74
EQUITY IN STOCK. on BASIS OF INVEST
MENT REPRODUCTIONS COS1O; DISTRI-
BUTTON OF UNDERGRADUATES EQUITY
AND EXCESS EARNING POWER.
Capital Traction Company:
Investment equity ............ 81. 713, ,S7S. .03
Indeterminate equity 90 o5eoi 2.794. .s75. X
Excess earning power. capital
Hed .................... 25O,UDW
s15,oos. 75s Is
Per cent Of par value Of stock
(s12. .OOO. .OOO) to total equity
of $15.N,s. 753. 1S. S.............. 1859
Washington Railway and Electric
Company:
Investment equity . 81 6sSs 300 %
indeterminate equity 90 $3.50 s.s.S. .os7 ~
S144g1 ,o46 81
Applying percentage Of 1857 11.5sj. 75l .s.
Ded.c, par value OF preferred
STOCK ShU.uu"
Equity in common stock. -. So, ,Oso. 7,l 50
or per share tGj. 600 shares). 7.473
Explanation of Figures.
In using the figures in the preceding
statement the commission is not to be
understood as indicating that there
is actually an equity in the stock Of
the two companies of $13.00S,753.1S
and $14,491,246.S2. respectively. The
priced inventories of the physical
properties of these companies. used as
a basis in these calculations, is an as
sumed figure: it is the only assump-
ton that could be made by which to
compare the values of the respective
properties of the companies. 1t is not
&C nmissiCn has determined it.
The com mmiSSiOn'S plan cont emDla teS