Evening star., 1926-10-28
PLAN NEXT MOVE
IN BUS TANGLE
Stephens and Clayton, Spe-
ciaI Adviser, Study Stock
Purchase Issue.

Preparations for the next move
against the Washington Rapid Transit
Co., upon which the Public Utilities
Commission has cast the onus Of
proving that its legal status is un-
tainted. were started today by Cor
poration Counsel Francis H. Stephens
and William NICK. Clayton. chairman
of the public utilities committee of
the Federation Of Citizens Associa-
tions. who will appear in a new role
as the temporary legal aid to the
commission.
Asa result of Mr.. Clayton's pro-
nounced success In delaying the efforts
of the bus company to obtain author
ity. to raise it's fare to 10 cents cash
and causing the commission to shun
it officially until all doubt as to it's
legal status Is removed. he has been
engaged as the commissions legal
adviser for at least month.
The appointment of Mr.. Clayton
was announced by Engineer Commits
sioner J. Franklin Bell, chairman of
the Utilities Commission. who explain
ed that 1t was of a temporary tenure
solely because of desire not to en-
barrass President Coolidge in any way
WncH E1E DeElIIS COIlSiucIdkIOA OL CdIls
didates for the new Public Utilities
Office and came to the District Build.
ing at II o'clock this morning for his
first conference in his new capacity
with the corporation counsel.
Course as Yet Unsettled.
Just how the commission will pro.
tho in effort
to clarity the situation arising from
the transfer Of its capital stock from
the former owner to the present. the
North American Co., ''in apparent
violation of the law" has not been de-
termined Members of the commission
admit frankly that they arc in a qoan.
Diary, and will rely entirely upon the
advice Of Mr.. Clayton, who is directly
re sponsible for the commissions ac-
ton in temporarily severing its official
relations with the bus company.
There is a probability that the COM
mission may, through the Board of
Commissioners, which constitutes the
same men who compose the commits.
sion. take the case into the courts
a. procedure suggested by the corpo-
ration counsel. Such a move, 1t was
said. likely would meet the approval
of the bus company. as Its counsel
has pointed out that the proper place
to decide such legal questions as in
volved in this case Is in the courts.
The commission has instructed the
COMPANY to first take steps to satisfy
it as well as Mr.. Stephens that its
status is or has been made legal.
Briefs are expected to be filed in be-
half of the company within a few
weeks. but even then, the question of
the legality Of the stock transfer. 1t
was explained, would ultimately have
to be determined in a court Of equity.
May Ask Congress O. X.
One other course is open to the
company to regain the recognition of
the commission. according to its
officials. -
That Is for the North American Co.
to obtain the approval Of Congress Of
it's purchase Of the capital stock Of
the washington Rapid Transit Co. as
required by the La Toilette anti
merger lava matter which Mr..
Stephens said the holding company
apparently overlooked when it ac-
quired the stock last December.
There Is grave doubt among members
Of the commission, however, that
Congress at the forthcoming short
session will have SUFFICIENT time to
delve into the present case.
Commissioner Bell said today that
he appreciates fully the .far-reaching
effect the commissions decision will
have, not only on the bus company,
but on other Washington utility cor
porations because of the North
American Company's interest In
them. The Commissioner indicated,
however. that the utilities commits
sion probably would not attempt at
this time to probe too deeply into
this phase. as such a step undoubt-
edly would create an "intolerable sit
uation." 1.-THE utility corporations
must operate here" he said, ..'and
the commission must have some rela-
ton with them"
Maj. w. E. r. Covell. senior as
sistant engineer commissioners as
signed to public utilities. said that the
records of the commission show that
the North American Co. has acquired
one.third Of the capital stock of the
Railway and Electric Co.
and its subsidiary, the Potomac Elec-
trio Power Co., in addition to three
fourths of their common stock. 1t
also is the largest individual stock.
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