Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-01-07
CAPPERST|LL SEES
HOPE FOR MERGER
Says North American Denial
of Control Does Not Mean
All Prospects Gone.

The North American 90. OIL New
York, which last Summer spent $50,
600 in surveying the transportation
problem of Washington, late yester.
day afternoon delivered to Senator
Capper, chairman of the Senate Dis
trict committee, a letter setting forth
exactly the extent of its holdings In
each Of the local transportation sys
TENS.
The communication showed that
the North American Co. has not ac-
CURED a majority interest in either
of the street railway companies, al
though it has made investments In
each In the case Of the Washington
Rapid Transit Co., independent bus
system, the letter showed the North
American Co. has acquired all but
about 500 shares of the stock.
Would Clear Misapprehension.
A. L. Dame, president of the North
American Co.. told Senator Capper he
was writing letter in view OF mis-
apprehension which seems to exist In
certain quarters with reference TO the
relationship of his company to the
traction situation in the District of
Columbia. Continuing, the letter from
Mr.. Dame said:
I'm view Of the misapprehenslon
which seems to exist in certain quar-
tiers with reference to the relationship
of this company to the traction slt ia,
ton in the District Of Columbia l feel
that it is appropriate to advise you
of the facts. The total ownership OF
The North American Co., including
that of affiliated interests, In transit
compan MES Is as follows:
washington Railway and Electric
Co-4S,750 shares Of common STOCK
and 5000 shares of preferred STOCK
Total, 51,750 shares. This out or a
total of $50 900 shares of voting stock
Capital Traction Co.-4.oO2 shares
Of common stock. This out or total
OF 10000 shares.
Controls Bus Company.
Washington Rapid Transit CO.
2l.126 shares of common stock. This
is out of a total Of 81, 500 shares.
City and Suburban Railway Co.
So shares of common stock.
The foregoing holdings represent
total investment of somewhat over
$4,000 900. The acquisitions OF the
stock which have been made as afore-
said. have been made as an investment
by this company, which, as you may
be aware, is largely interested in the
shares of public utilities throughout
the country Except in the case of
the Washington Rapid Transit Co.,
neither the North American Co. nor
affiliated interests have in any way
sought to control management"
Senator Capper said today, he did
not feel that this letter necessarily
meant that all prospects of merger
of the local transportation systems
had passed.
Senator Capper declared today he
did not feel that prospects of a street
railway merger for Washington nave
gone into the discard He made this
observation in discussing the letter
sent him late yesterday by the North
American Co. of. New York. in which
that company showed that it has not
acquired a majority of the stock OF
either street railway company. Sen
ator Capper said he did not believe the
letter had any great bearing on the
present possibilities of a merger.
No New Bills Prepared.
No new legislation designed to bring
about merger has been prepared at
this session, it being the view OF Chair
man Capper that a reasonable time
should elapSe to see what Roadway the
companies make toward q consolida-
ton under the voluntary merger Dill
passed at the last session.
The report has not removed the
prospects of a merger Of the traction
companies. in the opinion of Maj. w.
Z. r. Covell, Assistant Engineering
Commissioner, assigned to public utll-
tiles.
THE merger prospects are as
bright today as ever" said Maj. Covell,
commenting on the North American
Co.'S letter. The North American
Co. has practical control Of the Wash
ington Railway and Electric Co. al
though it only has a small block of
stock in the Capital Traction Co.
eff it did have the controlling In
terest in the Capital Traction Co.,
there would have been a merger long
ago"
The fact that the North American
Co. acquired almost 100 per cent of
the stocks of the Washington Rapid
Transit Co, the utilities experts point
ed out, shows that it IS ready to take
over additional interests in the two
traction companies whenever it gets
the opportunity, and when this is