Evening star., 1925-09-22
North American Co. to Study
Engineers Report With
End in View.
RER0UTlNG is ADVOCATED
IF CONSOLIDATION FAILS
No Immediate Steps to Be Taken,
But Eventual Uniting of Street
Railways Is Expected.
BY CHAS. p. SHAEFFER.

The North American Co. hopes
eventually to control and merge the
two local street railway lines operat-
ing in Washington. This fact was
by inference but firmly established
at a conference held with North
American officials in New York City
yesterday.
Denying the imminence of
merger these officials declared the
comprehensive survey of Washington
transportation problems, recently
completed by the engineering firm of
Mcclellan & Junkersfeld, would be
subjected to a minute analysis by
traction experts of the company. and
if findings We're justified the North
American Co. would take steps to
add to their already large interests
in Capital street railway lines.
1t was readily admitted by Edwin
Gruhl, vice president and general
manager of the North American Co.
who is the directing genius in the
local situation, that the primary pur-
pose of the survey of Mcclellan 6,
Junkersfeld was in anticipation of a
future merger of local street railway
lines, but emphasis was laid on the
fact that if such action did not take
place the expenditure of the sum
necessary to completing the survey
would be a prudent disbursement 10
protect an investment of between
100000 and s5,000,000, the amount
of the company's present interest in
Washington street railway lines.
Denies Entire Ownership.
Mr.. Gruhl declared that approx
~, ~f
common stock of the Washington Rail-
way and Electric Co. was owned by
the North American Co.; a relatively
small amount of the $500, 900 of pre-
ferred. and an also comparatively small
amount of Capital fractions $4,000
600 of capital stock. 1t was further de-
termined that North American inter
ests are not now In the market for any
of these stocks, having lost interest in
Railway common, their latest activity,
when that issue was selling more than
80 points below it's present level. Fur
thermore, according to Mr.. Gruhl, the
company has no physical interest
whatsoever in the Washington Rapid
Transit Co., nor does it have any
agreement whereby shares or control
can be acquired at a later date.
Mr.. Gruhl emphatically denied the
allegations contained in an advertise
ment of Coburn, Kittredge G. Co., Bos-
ton brokers, that the North American
Co. owned and controlled the entire
Washington Railway and Electric sys-
tenn in Washington, and advanced the
information that letter had gone for
ward asking that this statement be
stricken from future advertising.
In the opinion of North American
officials. the recently completed sur
vey, If not instrumental in facilitating
merger of the two street railway
| lines. will bring to the surface such
essential information that a rerout-
ing of the present lines could be eff
fected by the Utilities Commission,
conforming with the salient facts of
the survey.
Improvement Needed.
There were no denials on the part
of Mr.. Gruhl that the present sys-
tenn needs improvement. The sur
vey. it was recalled. showed a super
f1uity of cars in isolated or barren
territories. and an inadequate num-
Der on arterial lines during rush
hours. Then. too. attention was
called to the inability of local lines
to operate the maximum number of
car miles per car hours, this de-
linquency being measured by other
cities of corresponding size. Much
of the trouble now existing locally
could be eliminated, Mr.. Gruhl be-
lieves, through the medium of lerout
ing, even to the extent Of Utilizing
competitive trackage. HE also added
that a new and faster time schedule.
with the threat of dismissal to the
first man who couldn't conform TO
it's requirements, had materially in
creased service in other cities within
his knowledge.
North American officials tactfully
declined to shed any light on the prob
able nature of merger II such could
be effected 1t was stated, Nwever,
that the usual form Of such proceed.
ures was n cash offer for a majority
purchase Of interested stock.
The matter of merger of the two
properties is primarily a matter of
| agreement between the companies IN