The Washington times., 1922-07-15
KING TRACTION
B|LLPROV|DES
SALE BfF0RCE
Merger May Be Compelled by
Court Process In Case
Other Methods Fail.

The new merger bill sponsored
by Senator King, authorizing the
absorption of the Washington Rail-
way and Electric Company by the
Capital Traction Company. has
been completed and win be intro
duced in the Senate in the near
future.
Senator King believes that the
measure win pave the way TO q
consolidation Of the local street car
companies, and intends to make q
vigorous fight for II before the
Senate District Comittee.
The bill follows the outlines Of
It's general provision. which already
has been published. II authorizes
the exchange of the preferred
and Electric Company for that Of
the purchase Of the w. r. and Els
common stock by the other corpora
ton.
The bill also provides. In the event
of the failure of the Capital Traction
Company to acquire a majority OF the
preferred and common stock Of the
Washington Railway and Electric
Company. for the seizure of such,
shares by court process. and their
forced sale to the Capital Traction
Company at a fair value to be deter,
| mined by court appraisers. This fea.
ture OF the bill makes II a compulsory
merger measure. in effect, although
the Capital Traction Company In not
required to resort to court procedure
unless II desires to do so.
Text Of King Bin.
The text Of the bin follows;
/ The Capital Traction Company Is
hereby authorized to acquire and
hold the shares of the preferred or
common capital stock Of any other
ccorporation having a franchise to
operate street cars In the District
Of Columbia: to issue shares Of its
preferred stock and to exchange the
same. share for share. for the pre-.
ferred stock Of any other corpora.
ton having a franchise for the
operation Of street cars In the Dis
trict, the shares Of the preferred
stock OF the Capital Traction Com
pany to bear the same rate of In
terest and to be OF the same par
value as the shares for which they
are exchanged: to purchase and ac-
quire shares OF the common stock
OF any other corporation having q
1 franchise for the operation Of street
cars In the District Of Columbia,
with any surplus or other funds In
Its treasury available for this pur-
pose; and to issue bonds to raise
funds to purchase and acquire the
shares of the preferred or common
stock Of any other corporation nav
ling a franchise to operate street cars
in the District OF Columbia.
"If within one year Of the date
of the approval of this act, the
Capital Traction Company shall not
have acquired 81 per cent OF the
Outstanding shares OF the Washing
ton Railway and Electric Company,
said Capital Traction Company 10
authorized to file with the supreme
Court Of the District OF Columbia
a petition setting out the number
of shares of the common or pre-
i ferred stock Of said washington
Railway and Electric Company the
acquisition Of which shall be neces-
sary In order to make the holdings
on the Capital Traction Company
OF the shares OF the Washington
| Railway and Electric Company
equal to 81 per cent OF the out
standing shares Of the washington
Railway and Electric Company. and
i setting out the names and addresses
OF the stockholders whose shares II
acquired, with the number OF
shares required from each, and the
reasonable value thereof.
Plan Of Appraisal.
The court shall thereupon direct
process to issue for the seizure and
attachment of such shares, and upon
such return duly executed. the court
shall appoint three appraisers who
shall meet at a time and place desig.
mated, and after being sworn to uis-
| charge their duties according to law,
they shall appraise the shares Of
stock at their fair value, without re-
gard to any appreciation Of deprecia-
ton thereof, which may have been
| caused by the demand OF the Capital
! Traction Company for such shares,
and the award Of said appraisers.
\ when confirmed by the. court, shall
| be final and conclusive on all parties.
| The charges and expenses OF the ap-
praisers and the costs Of the proceed
| ines shall be taxed as legal costs
against the Federal Treasury. Upon
payment Of the amount Of the award
| the attached shares shall be deliv.
| cred and transferred to the Capital
| Traction Company.