The Washington times., 1921-05-20
GAR
merger ALL FAIL
Hope Of Voluntary Consolidation
Of Two D. c. Systems Aban-
doned bv Utilities Board.
/. .(Contiausd from First Psss.)

Traction Company the same privileges
enjoyed by the preferred shareholder
Of the washinston Railway and
Electric Company; that is to cay. each
to have preferred dividends at the
rate Of . per cent per annum. with q
second preference as to dividends TO
the stock Of the Capital Traction Com
pany at the rate Of per cent per
annum; the common stock OF the
Washington Railway and Electric
Company to be converted into the
Same number Of shares a. present of
common stock. without par value; and
both preferred stock and common
stock to have voting power; or u for
any reason neither OF the foregoing
10 deemed, acceptable or eminsaily
just.
"The Washington Railway and
Electric Company believes II could,
ana would end eayor to. purchase and
pay Tor In cssh at 800 per share all
of the capital stock Of the Capital
Traction Company. " deliverable, or
'usstanttally all OF IT,"
COMPANIES DEADL0CkED.
The two companies declined to ac-
cept the plans submitted by each
other. and the Public Utilities com
mission prosedsd to formulate .
basis for q merger. This plan COM
prised three elements:
First. the determination Of the
equity ip the stock on q basis OF the
price invAs4ories. H
Second the asrevt In uswt ~ chat
IL dsnoRinatsa the -tnA>terminats
esutty": that IL, the excess Of the
par value OF the stock over the
sQutty therein - nrst determined, and
the dtstribution Of this amount ke-
tween the tvo eomDantsa IL pfopoY-
tion to ~ AaAount Of their physical
propsrty on the basis Of the price in-
vsntssies. -n0,
Third. the sse-rtainmsnt Of the
txesss earning power Of the Capital
Traction Company over that Of the
Washington Railway ana Electric
Coupany. .'s.,. >.
The commission, In subra biting Ns
plaa. placed . value Of $SS.779.3y1.ss
Capital Traction, washington rail-
, way. and Potomac Electric.
CoHMIsSFoH1 PLAN.
The Commisstee's plan eSutsmplaAeA
An exchange Of 10000 shares Of the
Capital Traction ce.paay fer an
eevL nsmSss or shares sf common
stock ia the merged company: an
exchange OF 5000 shsrss Of ". r. q
q. preferred stock for an equal num-
Der OF sheres a new pYeferrUd Otoe1I
having the same dividend - 1t psss.
ent q pss caat) and the sama prsf-
erepce - to liauidation. The paAn
provided thai botA ths psv seamon
stock sRd the aev Srsfsrred stock
should have fuu voting power. shars
for share
This nAsa ras ssjsssSd and he ssD-
paAies submitted furtlssr propeGslA
ThS CaDttAl 1raGttoH rejects the
proposal of the eo1missiob bscsnas
the plan gdvss no prefessncs to the
stock OF tie Capital rraetion Ossp-
pany, bat reduces IL to The iSvsl 81
the ccn,oaAy stock Of the WHahtnG-
ton Railway and Electric Company.-
As to the proposal Of the W. n Z.
the c. r. Co. at $50 share. tie
Capital rrsetiea wiz not svsa Aas-
| The ". R 4 e. plan u rsjsessd
also because II gives the washtaetss
Railway absolute and ynaoaliosd 60
troll Of L. Capital Trnetfou Cousphy
A Doo1d spUesee3oa subuat7sA by
the Capital Tso6tioa pro~tdAd Q O.
solidatsd company, With the e. +. hnx-
ing nine members On the board Of a.
rectors, the W. R 4 E.. seven, and
one TO be appointed by the Public
Utilities CoUmisssoa.
The numhar at directors was to b
company In proper ton to their respsc
tive equities In the reereduetton va,u<
8 found by the commission.
ACCDerFv eRE P1.AN.
The WAshinetSn Railway ana Blse.
trio Company In one sastAnnent sSyes<
to accept the merger plan Of the Pub
lie Utilities Commission.
/ II appesYs, howsvef. that II vas moi
possible to get the Capital Tracttos
Company to accept the plan, 30 tn,
commission decided to bsinS the con
ferences TO . close. feeling IL woui<
not be able to get the two compante,
in agreement -,...
Senator BAN, ehairn,an Of ths
Senate District COMMITTEES. reeefvet
the report OF the oonfere>S thiS nesn-
ing. He said that he woul1 imms
diateIy Het mis- committee together
and 70 over II. He aAAed that {,
contained much valuable material
Tor his committee and that he would
consider the merger question alons
with the rent situation.
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