Evening star., 1927-10-30
WILSON TO REVEAL
TRACTION MERGER
PLAN TOMORROW
Companies Would Divide
Profits on Basis of 1926
Returns, He Indicates.
BUS LINES PRESENT
PROBLEM IN PROPOSAL
Trustees, Acting for Public, Would
Serve as "0verlords" to
Protect Interests.

Complete details of the plan drawn
up by Harley L. Wilson. owner of the
Washington Rapid Transit Co.. for
bringing about the long-advocated
unification of the Districts transpor.
tation systems, are expected to be
revealed to public inspection tomor.
row for the first time.
Mr.. Wilson, according to his ad.
visers, has virtually finished work on
the important document. and will
have it ready for formal presentation
to the Public Utilities Commission to.
morrow morning, when it will be re.
leased for publication in the news
papers.
Certain features of the merger plan
leaked out yesterday. but Mr.. Wilson,
it was said. will disclose in the docu.
ment to be submitted to the commits
sion, numerous important details
which have heretofore not been dis.
cussed privately with the group Of
civic leaders. bankers and members
of Congress from whom he sought
advice.
would Lead to Reduction.
Based on cost-plus system, where
by the stockholders in the consolidated
company would be guaranteed a stipu
lated rate of return, the merger plan
Mr.. Wilson has assured those whom
he had taken into his confidence
would not entail any increase in car
fares, but would ultimately lead to re
duction.
The plan of consolidation, 1t was said
proposes that the street car compa
nies share the earnings of the merged
company on basis Of their 1926 earn.
ings rather than on a basis of their
respective valuations.
Figures obtained from the records
of the Public Utilities Commission
show that the Capital Traction Co.
earned $1,1O3.493 in 1926, or 4.23 pes
cent on it's court valuation. Tbs
Washington Railway & Electric Co.
exclusive of the Potomac Electris
Power Co., which Is not to be involved
in the merger. earned $97S,916, or 5.23
per cent on the valuation of $18,500s
900 fixed by the Utilities Commission.
This company's valuation, however,
is expected to be revised to a higher
figure by the courts. A valuation has
never been placed on the bus com.
pany.
Bus Line Presents Problem.
Commission attaches calculated
that capitalizing the total valuations
of the two railway companies at z
per cent, the amount held to be rea-
sonable by the commission, the Capt.
tai Traction Co, as a result, would
go into the merger at $15,750,000 and
the Washington Railway & Electric
Co. at $14.O00.000. for the purpose sf
splitting profits, which would give
the former SO per cent of the net
earnings.
AS the bus company faced deficit
in 1925, the Utilities Commission at
taches are unable to determine how
it could be given a share of the pro.
ceeds. The company, however, could
be sold to the merged company, 1t
was said, and thus eliminate this
problem.
Mr.. Wilson has indicated that the
bus company will be a party to the
merger, and that he will not gain
cent by the transaction, but he has
not intimated on what basis it would
be taken into the consolidated com.
pany.
The merged company, according to
the details of Mr. Wilson's plan that
have become known, would be private.
ly owned, but managed by trustees
appointed by the commission, or the
Commissioners or perhaps the Presi-
dent. These trustees Mr.. Wilson is
said to have described as ''overlords
for the public"
Taxation Called Unjust.
r. II. Phillips of Kensington. Nd.
owner of the Chevy Chase Lake
kensington traction line, which Is
leased to the Capital Traction Co., ana
himself a stockholder in the Capital
Traction Co.. issued the following
statement yesterday in regard to The
merger proposal:
"The city of Washington has pro.
gressed favorably with two compara-
lively parallel and competing trolley
railway systems" said Mr.. Phillips.
IF passengers dislike the service or
facilities of one railway they ride by
the other line. Or, if their homes are
more convenient to one line, they may
ride on that line.
'All of the trolley railways have
been handicapped by unjust taxation.
They are compelled to pave a large
section of the streets without any rro.
lection from motor car interference
with their traffic on the parts Of the
ways pay for crossing policemen, who
are of no benefit to tn, trolley rail-
ways whatever. but only serve the
motor car driver, who often is reck-
less and needs the strictest sort Of
regulation.
""They are compelled to pay a heavy
tax on their gross receipts for serv.
ice to the public in furnishing excel.
lent transportation throughout the
city at rate of fare lower than any
street railway system I'm
the world. The fares, however. might
be modified with some equity. Token
fares were reduced on two occasions
from 7l3 cents to z cents and then to
6 % cents. The cash fare was not
correspondingly reduced to Z cents
when the token rate was made 2.3
cents. Also. three tokens should be
sold for 20 cents, the same rate as
s for 40 cents, as sometimes 1t Is more
for people who have 20
cents in their pockets and have not
40 cents. Many will tell you every.
body is rich nowadays. You may be.
lieve it or not as you like.
Wants Autos Barred From Track.
eff these notifications do not in
crease the traffic and give the people
better satisfaction then this stock.
holder is i'm error. Motor cars. how
ever. should not be permitted to drive
IN within foot nf fbo