Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-11-26
BOARD TO CONSIDER
PLANS FOR MERGER
Utilities Body Will Study
Three Programs Submitted
Within Ten Days.

Official consideration Of the three
different plans for consolidating the
transportation systems of the Dis
trict probably will be undertaken
within the next 10 days by the Public
Utilities Commission. it was indicated
today at the District Building.
The scheme drawn up by the COM
missions chief accountant, B. Nick.
Bachman. is the only one, however.
that is before the commission In COM
plete detail The plan of Harley p
Wilson. principal owner OF the
Washington Rapid Transit Co, was
submitted to the commission October
81. In general outline. but considera-
ton is not likely to be given 1t by
the commission until the author pre-
SCENTS it in finished form, which he
Is expected to do sometime next
week.
Third Plan Nearly Ready.
The third plan, that drawn up by
the firm Of Charles Hansel. consulting
engineers and utilities specialists, also
is likely to be submitted to the COM
mission in the near future. This plan
has been completed. but it is now un-
iergoing q printing and binding proc
ess which will take until the middle of
next week. it was said. and then 1t
will have to be approved by the public
utilities committee Of the Federation
of Citizens Associations before 1t is
presented to the commission. The
Iansel plan was framed for the utli-
tiles committee at the instance of Maj.
Clayton r. Emig, acting chairman,
upon the authorization of the
federation.
Comment on the Bachman plan,
which the commission made public
Yesterday. was not forthcoming from
Of the commission or its
attaches today. chiefly because they
said they have not had sufficient time
10 study and analytic it. Those who
have made a cursory examination of
the scheme, however. express the
opinion that it gives the public more
'dvantage than the Wilson scheme.
The cardinal feature of the Bach
man plan, from the public's stand
point, it was said, is that it avoids a
fixed valuation with a guaranteed re-
turn, one of the provisions of the VIII
son scheme which met considerable
opposition from utility experts at the
District Building.
Higher Return for Good Service.
Bachman's plan specifically stipu
lates that the property of the consoli-
dated company. used an useful. be
not valued until at the end of the
first year of operation under mer-
ger, and with that valuation as a rate
base, a sliding scale of rates Of re-
turn be adopted, permitting the new
company to earn as high as 9 per cent
if it can on a scent fare, per cent
on present fares and not more than
Az per cent If the fare be increased
to 10 cents. In other words the con-
solidated company would be rewarded
with a higher return for efficient and
economical operation.
Just what procedure the commission
will follow in considering the three
different plans has not yet been deter
mined, although Chairman John w
Chidress said it was the intention of
the commission to accumulate all of the
merger ideas possible before preparing
plan for presentation to Congress,
1t is likely that the commission will
embody the best and most practical
features of all three plans into the
merger bill.
Pay Causes Surprise.
The revelation of Charles Hansel.
head of the firm of consulting engi-
neers and utility specialists, which
drew up the street car merger plan
for the public utilities committee of
the Federation of Citizens Associa-
tions, that he expects to be repaid for
the cost of the work by either the
public or the consolidated company,
caused considerable surprise today
among members Of the federation.
The federation, it was said, was
given to understand that it would not
be required to pay the bill, and there
had been much speculation as to how
the firm expected to be recompensed
for the thousands of dollars it has
spent in making the comprehensive
transportation survey on which 1t
based the merger plan.
Understanding Denied.
Mr.. Hansel said that he had an un.
derstanding with the federation's util.
tiles committee, as we'll as Ralph Is.
Fleharty, peoples counsel before the
Public Utilities Commission, that,
should street car merger be consum-
mated on his plan, provision would
be written into the merger legislation
to repay the firm. Mr.. Fleharty. how
ever. denied that he had such an un-
derstanding with Mr.. Hansel.
The whole question of financing the
survey is expected to be thrashed out