Evening star., 1926-11-06
TRACTION MERGER
HOPES BRIGHTEN
Bell Is EIated Over Prospect
of North American Com
pany's Interest.

An unexpected move by the North
American CO., which has extensive
holdings in the Washington utility
corporation, to bring about a unified
operation of the Districts transpor-
tation systems has buoyed the hopes
of officials Of the Public Utilities
Commission for an early consolida-
ton.
Engineer Commissioner j. Frank
lin Bell, chairman of the commission,
made no attempt to suppress his
elation today over the renewed inter-
est which the New York investment
corporation has taken in the merger
negotiations. The companys plans
were disclosed to Commissioner Bell
and other attaches of the commission
yesterday afternoon by John Foster
Dulles. its general counsel, who came
from New York for that purpose.
Mr.. Dulles. 1t was said. assured the
utilities officials that his company
would undertake Immediately negotta-
tions with the Capital Traction and
the Washington Railway and Elec-
trio Cos. to bring about a merged op-
Grafton, sanguine that some step to-
ward it's accomplishment would be
taken before Congress reconvenes
next month.
ChVOES ORcEdtOu.
The North American Co., Mr.. Dulles
advised Commissioner Bell, will favor
unified operation even without a serv-
ice-at-cost plan or a fixed valuation
for the merged comparative prin-
ciples which the traction compa MES
have insisted should be embodied In
any merger agreement to meet their
approval.
The question as to the legality Of
the North American Co.'S purchase of
the capital stock Of the Washington
Rapid Transit Co., which resulted in
the commissionv severing its official
relations with the bus company, was
not discussed, according to Commits
sioner Bell.
The conference lasted for an hour
and 15 minutes, and was attended by
Maj. w. Il. X. Covell, senior assistant
engineer commissioner. and William
Nick. Clayton, temporary legal aid
to the commission.
Just prior to Mr.. Dulles appear
! ance at the Office Of Commissioner
; Bell the commission made public a.
letter it received from Frank l..
Dame, president of the North Ameri.
| can Co., showing the corporations
present holdings in the utility cor
porations Of the District. The com.
| munication was in reply to tnforma-
tfon asked by the commission when it
started an investigation Of the COM
pany's interests in the local corpora
tons.
Company's Local Holdings.
Mr.. Dame revealed that the conn
pany and its agents now hold 48,500
shares Of comuaon and $500 shares Of
preferred stock Of the Washington
Railway and Electric Co, 3,012 shares
Of the Capital Traction Co. and 21 POT
shares Of the Washington Rapid Tran
sit Co. Compared with it's holdings
last January, the present ownership
represents an increase Of $500 shares
of the Washington Railway and Elec-
trio Co s preferred stock. an increase
Of 81 shares of the bus company's
stock and a loss OF $50 shares of the
Capital Traction Co.'S stock.
Utilities officials point out that the
North American Co. has full control
Of the Washington Rapid Transit Co.,
but it owns only about SO per cent
of the voting shares Of the Wash.
ington Railway and Electric Co., and
therefore cannot alone control its
management. Its ownership in the
Capital Traction Co. is about 40 per
cent of the total stock issued.