The Washington times., 1921-05-20
CAR MERGER
PARLEYSEND
|NDEADLOCK
Utilities Board Gives Up Hope of
Voluntary Fusion Of Trac-
ton Systems.

Official announcement was made
today by the Public Utilities Com
mission, Capital Traction Company
and Warrington Railway and Elec-
tric Company that all attempts.
through conference, to effect volun-
tAry merger of the two street rail-
way companies have failed.
1t appears from q study Of fve
merger plans submitted. one by the
commission and two by each of the
companies, that the conferees failed
to agree because Representatives Of
each company refused to accept any
plan which would not give them abso-
lutte and unqualified control Of the
other company
COMMISSION sTATEMENT.
The commission. In making public
the several merger plans submitted
and rejected. Issued the following
statement. signed BY Col. Charles W.
Kutz. James r. Oyster.. William r.
Ham, Milton E. Allies George e. Ham,
ilton and J. Il. Hanna:
After full consideration Of the
above plans IL became evident that the
differences between the companies A.
to the terms of . merger OF their prop
erty were so great as to be irreconcil-
able.c
General Manager Hanna. OF the
Capital Traction, in submitting the
second merger plan of his company.
declared that he failed to see in any
of the merger plans submitted any as
surance Of any considerable reduction
in fare.
"The Capital Traction Company,
as now directed and under existing
conditions. will continue to give good
service, and 10 able and willing 70 do
SO on q reduced fare" said Hanna.
The Capital Traction Company's
frst plan provided for the consolida-
tion of it's company with the w. r.
and y. and the Potomac Electric
Power Company.
CAPITAL TRACTION PLAN.
The plan proposed that in the
merger company. the Capital Trac-
tion Company shall have five members
on the board of directors, the wash
inGton Railway Electric Company
three and the Public Utilities Com
mission one, this board to continue
until December 81. 1881. Each group
| would have the power to MI vacan-
cies and have substitutes in case Of
enforced absence from meetings.
This plan was rejected by the w. r.
& E.. representatives Of this company
| declaring:n
"In event Of . merger. the Capital
| Traction Company demands absolute
and unqualified control Of the censeli-
dated companies. The terms and
basis proposed by the Capital Traction
Company for the Issuance Of new Sc
curities by q consolidated company are
not in any wise acceptable, As they
grant unfair Advantages to the Capt.
tai Traction Company, depreciate to
An indefe nsibls extent the assets Of
our properties. and deprive US OF q
thereof"
The Warrington Railway and Elec-
trio Company countered with q pro-
posal that II be allowed to lease ali
the properties OF the Capital Traction
At a rental Of $4,000 per annum for
long period OF years. and, In addi-
tion, to pay interest on bond indebted.
ness not in excess OF the present
charge, maintain the properties, and
set aside sufficient sums for deprecia-
tion. according to fair rates of de-
probation to be prescribed and en-
| forced. II possible, by the Public
Utilities Commission.
T PROPOSAL FROM W. n. 4 n.
The second proposal from the wash.
ineton Railway and Electric Company
follows:
'rhs washington Railway and
Electric Company will agree to merge
and accord to the stock Of the Capital
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