Evening star., 1923-04-15
TRACTION MERGER
CHANCES BRIGHTER
Settlement of Pepco VaIua-
tion Dispute May Bring
Joining of Trolley Lines.

Settlement of the disputed vaiua-
tions of the Potomac Electric Power
Company. the Washington Railway
and Electric Company and the Capt.
tai Traction Company would be
step toward merger. persons familiar
with the utility situation declared
yesterday.
S. r. Bowen, vice president and
counsel for. the power company and
the Washington Railway and Elec-
trio. said last night that IL the
valuations could be adjusted it un-
doubtedIy would bring the city near
er to a consolidation of the COM
panics.
Br Bowen pointed out, however,
that Congress still would have to
pass an act removing the legal re-
striction which now exists against a
merger.
Oyster Urges Agreement.
Commissioner oyster came out last
night in favor of the suggestion put
forth a few days ago that the COM
mission and the power company get
together in an effort to agree on a
valuation. The Commissioner also
voiced the opinion that 1t would be
easier to accomplish merger with
the property values definitely de-
termined.
At the present time the commission
is looking into the advisability of a
valuation conference with the power
company only. 1t is entirely possible.
however, that If a compromise should
be reached on the value to be allowed
the power plant, negotiations might
be entered into with respect to the
two street railway companies.
1t is understood that Corporation
Counsel Frank Stephens has reached
obstacle in the way of a movement to
reach a compromise with the power
company.
Valuation Held Too Low.
1t is seven years since the commits
sion valued the power property, and
about four years since the two rail-
way systems were valued, and all
three valuations still are tied up in
the courts.
The present proposal that a get
together effort be made is result of
the decision of the United States Su-
ton over the valuations This action
by the highest tribunal left as final
the decision of the District Court of
Appeals, which held that the commits
sion's valuation was too low.
If the compromise is not now
brought about, the commission and
the company must go back to the Dis
trict Supreme Court and engage in
another extended period of litigation
to have the value of the power prop
erty fixed.
Seven Years ON One Suit.
The outstanding point of dispute in
the cases Of all three companies is
that the commission did not give
proper consideration to the high
tions were made. -.
Seven years have been devoted to
trying the power company's case
alone. The suits brought by the two
street railway companies are still
pending in the District Supreme Court
awaiting the outcome of the power
case.
In giving his Endorsement last night
to the proposal for q conference be-
tween the commission and company,
Capt. Oyster said he felt such a step
would be in the interest Of the public.
Expect Decision Soon.
"I believe the people want to see
these valuations settled, and IL there
is any chance to bring about fair
settlement feel that we should make
the effort
Whenever merger of the two car
companies and the power company
has been under inquiry the point of
disputed valuations has been raised
as one of the deterring factors.
The commission probably will decide
within few weeks whether 1t Will
propose a conference to the power
COMPANY.