Evening star., 1927-11-21
CAR MERGER BILL
HELD IN ABEYANCE
Action in Congress May Be
Taken if Companies
Fail to Unite.

The hill designed to induce the
WASHINGTON Railway & Electric and
Capital Traction Cos. to consolidate,
which failed To pass in the last ses.
sion of Congress-. may be reintroduced
this Winter should negotiations now
under way to bring about voluntary
merger meet with failure. it was in
dicated today at the District Buildng
The Public Utilities Commission had
temporarily sidetraeked the compu.-
sory merger bill because of grave
doubts uf several of its members as to
its couStitutionality and also on ac-
count Oi the apparent determined eff
tort Of Harley T. Wilson To lead the
transportation companies into a uni
fled operation without resorting to the
use oi a legislative cudge!
The doubt as to the bills constitu.
tiondlity has been removed, however.
by recent opinion of Corpora ton Coun.
sci William w. Bride. who as general
counsel of the commission was asked
to pass upon its legality. After care
ful study and analysis. Mr. Bride was
able to find only one provision which
nc thought might be construed AS il.
legal by the courts and it's elimination
was suggested This questionable
point was one of the bills so-called
penalties, which would increase the
gross revenue tax of the car GONNA
nios from ! per cent to per cent for
failure to consolidate by specified
date
Mr.. Brides opinion has now been
before the commission for seyera |
weeks. but it was not made public.
1t was explained. because of fear thai,
7 might interfere with the negotia
tions initiated by Mr.. Wilson.
The commission has repeatedly EN-
phasiZet that it is anxious to see n
merger of the transportation compa
mes consummated. but that it favorS
a voluntary consolidation rather
than one forced by congressional lcgis
lation. Therefore, it is inclined to
await the outcome of Mr.. Wilson'S Of
forts before even considering the re,
Introduction of the merger bill, which
incidentally was sponsored by the for
mer commission.
A voluntary merger, the commission
ieels. would be far more satisfactory
and could be brought about much
sooner perhaps than one forced by
legisla ton. Should the latter course
be adopted. it was pointed out, the
ear companies Undoubtedly would
Tight the Legislation in the courts ana
thereby delay the merger for several
years.
Mr.. Wilson, it is understood, is con.
tinulng his series of informal CON
ferences with officials and stockhold-
ers OF the two traction compa nies in
an effort to get their views on his
merger plan before submitting the
maj draft to the utilities commission
Plan Public Hearings.
Public hearings, it was indicated,
will he started by the commission as
soon as completed plan is presented
The .irm of Charles Hansel, consult
ing engineers. also is putting finishing
touches on the merger plan it has
drawn up for the public utilities com
mittee of the Federation of Citizens
Associations. Clayton T.. Emig, acting
chairman of the committee, announced
that meeting would be held We'd
nesday with the engineers to go over
the plan which will BE submitted to
Ralph Il. Fleharty, peoples counsel
before the commission as soon as it is
ready for public discussion.