Evening star., 1927-12-01
UNLIMITED 1-MAN
| CARS ARE FAVORED
| IN HANSEL MERGER
Universal Transfers and Gen.
eral Rerouting Also Are
Recommended.
ELECTRIC POWER FIRM
NOT INCLUDED IN PLAN
Tripartite Basis Of Ownership Pro-
vided-Stock Offered D. C.
Government.

i ChhAlhtC0 hoO VI OHc-HidH SSEcEL
cars. universal transfers and gen.
eral rerouting of existing car lines
are the cardinal features of the plan
of the firm Of Charles Hansei, con-
sulting specialists, for consolidating
the transportation units OF the Dis.
trict which was made public TODAY in
complete form.
The plan, which was drawn up for
the public utilities committee of the
Federation of Citizens Associations,
provides for the creation Of q new
corporation to take over the operation
or all transportation lines now running
in and out of the District on 50-year
franchise basis. The new corporation
would not be holding compan ny. but
would own and operate the traction
properties, buying them outright.
Power Company Not Included.
All internrban trolley lines, as well
as notorious lines and taxicabs, would
be included in the merger. The
Potomac Electric Power Co., now 4
subsidiary of the Washington Railway
Il Electric Co.. would be left out OF the
consolidation.
Inc f1anSei plan, the tnffd fnat has
been produced since the resumption
OF serious merger negotiations, differs
radically from the other two thus far
projected. Unlike the other two Il
provides for no agreed valuation nr
rate base. This detail Is left to the
negotiations of all parties concerned.
Provision Is made. however. for q
guaranteed income for the merger
4 company, but the authors Of the plan
claim that it is estimated on SO low
a rate base that It would never neces-
state an increase In car fares.
4 Ownership In the new company
would be figured out on q tripartite
plan, modelled after that Of the Mitten
management of the Philadelphia tran.
sit lines. The District governments
would be given the option OF purchase
ing one-third of the capital stock,
while the remainder would be divided
between the private owners and the
company employees. 3
Tripartite tlwpsr.hip.
i This tripartite ownership wouid In
clude designation Of certain blocks uf
i stock under control Of trustees one
set OF trustees or coifimfSsionerS to
hold stock for the employees collective.
i y, one for the management pefsonnel
and one for public fund. Each OF
snese groups II to have one member
on the board OF directors. Other stock
| would be. offered for sale to street car
patrons. W
i The firm estimated that the result
i OF operation under its system Of uni.
a ncatiOH, would produce a sayine. OF
ii $2,377,000 year, This saving. how.
ever, would not result entirely from
the unification since 1t Is estimated
Il that $753,000 would be brought about
fhrough remission Of taxes, the abol-
Il itlon or the salaries OF crossing police.
men and paving assessments.
The merger company would have
Il complete autonomy except that the
president of the Board Of District
Il commissioners would name one mem.
Der OF the board of directors, manage.
ment and labor would have one rep.
4 resentative each, the auditor Of the
District would examine the connpa ny q
books. and The Public Utilities Com.
mission would approve all stock Is
sues after the initial one.
The Hansel plan Is based on an ex-
haustive survey OF the transports
| tion systems made by the firms en-.
gineers and accountants. Tt Is efn-
bodied In a comprehensive report OF
more than $50 pages. profuseiy Illus.
trated with maps and charts. 8
Public Support Urged.
4 The report containing the merger
plan stresses the duty of, the public to
cooperate In every way with the
transit utilities through Intelligent
regulation, and to extend to such
utilities Its moral and financial sup
port" s4.s ~
| In proper merger. the Hansel firm
holds, the public In it's own selfish 10.
terests should give its support To ee-
curing the following concessions 10
the consolidated company: AholitiCn
of existing franchise taxes. abolition
OF cost OF street paving tunless paving
is destroyed by the transit utiiityC
abolition Of the cost of traffic police
men at crossings: demand preference e
be given street cars at intersections
over automobiles and trucks and urge
the elimination of the right OF pri-
vate automobile parking IN congested
areas. where such privilege prevents
greater speed to cars and increases
accidents.
i In return for It's cooperation and
/ support. the HanseI firm claims that
the public is entitled to safe and ef.
ficient service at the lowest possible
fare consonant with such service: rep.
resentation on the board Of directors
l va WIG HGW dHAHCu LOINpduys tAG ItSUb
to participate directly in revenue
gains of the unified company and to
acquire ownership in the unified COM
pany after a period Of years by us
ing this participation In revenue gains
through payments to sinking fund.
the accumulated proceeds OF which
are to be used for this purpose and
an option from. the company to pur.
chase a substantial interest In the
transit properties in the future at q
nrice or according to a method agreed
upon at the time of the merger.
Rights Of Employees.
Certain fundamental rights also
should be guaranteed to employees Of
/ the merger company. according to
i Hansel theory. These should include
/ the right to elect one representative
ON the board OF directors Of the com
panf until such time as the employees
| have acquired capital stock and can
as actual stockholders take part In
the election OF directors: the right to
collective bargaining as to wages and
working conditions through represent
1 atives OF their own choosing or
i through their unions. and the right
1 through such organizations to enter
| into cooperative arrangements with
4 the management: the right to inst and
reasonable wages according 10 the
/ best standards OF the street railway
industry: the right to an adjustfnent
/ OF working hours SO as to permit. an
J far as practicable IN the irlferes. IT
Continued on Page 5, Column
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