Evening star., 1926-02-02

joint management would be very
slight, he said, and would play very
small part in the price the people
have to pay for service.
Pressed by direct questions as to
what the advantages under 4 merger
would be, Mr.. Hamilton said that 1t
would allow the establishment of
what all companies desire, service at
cost. Under a unified control. II
would be possible to get a better di-
rectlon and better routing, he be-
leVes: afford betters conditions for
the Public Utilities Commission by
simplifying problems, and would make
possible the removal of tracks from
some streets.
Takes Thrust at Maj. CoyeII.
Asked by Mr.. Zihlman if it did
not require the permissive act of
March 4 last as an expression of
the wish of Congress for a ,nerger
Mr. Hamilton said that he is op-
posed TO any coersive measure that
illegally and unJustiy attempts to
bring about a merger fIe said that
he believed it Is highly illegal and
immoral when we are told that the
Capital Traction Co. can be SO Grip
pied by indiscriminate permission to
run busses all over town and that
these bus permits are in the barrel
OF pistol to be discharged at the
nod OF Congress-" referring 10 testi-
mony by Maj. Covell at a previous
hearing.
In reply to further question by Chair
man Zihlman, Mr.. Hamilton said that
negotiations for a merger are exceed
ingly involved and difficulties arise that
sometimes seem insurmountable Both
,-S.x
conditions, he said When Mr. Zihl-
man commented You ought TO he
satisfied when you are getting 10la
per cent in dividends" Mr.. Hamilton
replied: THAT resulted from condi-
tions for which we were not respon-
sible, but that was only recent, and
over period of many years the aver
age has been only about per cent"
Claims Public Has Benefited.
He emphasized that was under au-
thority expressed by Congress.
through its properly authorized
agents, the Public Utilities Commits
son, and ha, he pronts have gone
into betterment to the advantage of
the car-riding public.
THE companies have been, and are
now, trying to smooth out differences
In values and routes and other intri-
cate problems" he said, and if it is
possible we will try to get down to a
BUSINESS 59s'" hat will d. equity to
both companies and to all security
holders equally. When we have reach
ed such tentative basis for a merger
we will present the situation to the
Public Utilities Commission, but until
we can reach such an agreement d dis
cussion and presentation of the steps
we have taken might cause apprehen-
sion and misunderstanding among Sc
curity holders.
lie sad that as president of the
Capital Traction Co. he has frequent
iy made efforts to bring about a mer-
ger between the companies. and that
more recently efforts were instituted
by the Public Utilities Commission
which, after long negotiations and
conferences, resulted in no accom-
plishment. 1t has long been in the
minds OF the managers of both street
railway companies. he stressed, that
when merger could be brought about
It should be effected. Then Mr.. Ham
llton referred to the traffic survey
made last Summer by the North
American Co., which did not disclose
its purpose. Outside of the question
OF merger that report is of great
value to the people, Mr.. Hamilton
pointed out.
Merger Committee Named.
On November 20, Mr.. Hamilton said.
ne was asked by representatives of the
North American Co. if the Capital
traction Co. would enter into nego-
tlations toward a merger. He replied
that personally he would be glad to
do so, and took 1t up with the board
or directors and a committee was ap-
pointed. This committee consists of
Mr. Hamilton as president of the Capt.
tai traction Co., John A. Hanna, vice
president and general manager, and
John n. Perry, a director.
Long conferences have been held,
some lasting two sessions throughout
the day, on four different OCCASIONS be-
tween this committee of the Capital
Traction Co. and representatives of
the North American Co. Much more
frequent conferences have been held
with the directors of the Capital Trac-
ton Co. AS a result of these con-
ferences seeking to find a basis or
which merger could be worked out,
Mr.. Hamilton feels that very substan-
ttal progress has been made and Is
very hopefuI that successful agree
ment may be reached.
, When basis of merger has been
agreed upon the Public Utilities Com
| mission will be brought into the ne
gOtiations not only on the terms of
| the law suit but by the policy Of the
company, said Mr.. Hamilton.
It was Representative Bowman of
West Virginia, new member 2f tho