Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-11-25

whom were paid salaries amounting
TO $50 a day, it was said, have worked
on the project.
The problem Of financing the survey
apparently had not been a serious or
controversial factor in the negoti-
ations until last week, it was learned.
Assurance had been given the feder-
alton that it would be assessed l cent
for the costly undertaking, and the or
SANITATION was inclined to ignore the
item. The subject. nevertheIess, was I,!.
frequently discussed informally
among the delegates who were Curl
ously inclined.
Payment Plan Is Alleged.
The impression got about that the
uanseI firm was a philanthropic or
ranization; that it was making the
survey as a public service primarily
but that it expected some compensa
ton in the form of advertising should
its merger plan be accepted ana put
into operation.
TTndoubtedlv this was erroneous.
According to information gathered
from reliable sources, Charles Hansei,
head of the firm, it was said. appeared
before the utilities committee or the
federation at a special meeting one
night recently and personally mace
known the procedure by which 1t was
hoped the financing of the survey
would be brought about.
Mr.. Hansel, it was explained, SUD-
mitted to the committee, a resolu'
ton which he requested 1t to inoorse'
which would embody in any merger
legislation the federation should
sponsor, a provision that the cost or
h.
the District. or against the consoh'
dated company.
The action Of Mr.. Hansel came as
distinct surprise to some members of
the committee, it was said, and his
resolution was not Endorsed. Ana
whether it will be ultimately is mat
ter for conjecture at the present time.
ANYHOW, the revelation, it was
pointed out, caused a rift in the ranks
of the committee, and the matter Is eX-
pected to be thrashed out on the floor
of the federation at its meeting. De
cember 3.
Mr.. Hansel himself did not attach
any degree of secrecy to the arrange
ment which he has made for financing
the project. Without hesitation. he ex-
planned that he thought il was gem
orally understood by the federation
and Ralph B. Fleharty. peoples coun-
sci before the Public Utilities Commits
sion. that If his merger plan is con.
summated, conditions will be made in
the legislation that Congress will have
20 approve before a consolidation is
brought about. to pay for the financ-
ing Of the survey.
HanseI Without Figures.
The federation however. he pointed
out. is not obligated to pay his firm
but 81.
I'VE have closed our eyes as to the
cost of the survey" he declared, "be-
lieving that equity will prevail. We
have always believed that somehow
and in some way proper recognition
would be given our work and that a
proper fee would be forthcoming.
This is the proposition we made in
good faith, and. Of course, there is no
other way by which we could be recon-
pensed.'
Mr.. Hansel said he was unable to
estimate the cost of the survey to his
firm, for which it has not been paid
one cent up TO this time. MANY
highly paid engineers and economists
have worked on this survey" he said,
and it has involved an expenditure of
many thousands OF dollars. But /
have not estimated the total amount,
and there is no stipulation in my UNI
Outstanding with the federation or the
peoples counsel as to the amount that
is to be paid should the merger plan
be put into effect"
When the federation authorized its
utilities committee to enter into nego-
tiations with the Hansel firm for the
transportation survey. it was told that
all the firm wanted in the way of
compensation was $1,000 to cover the
ae incidental expenses. a movement was
then started to raise the $4,000 among
the civic organizations, but when the
chairman Of the subcommittee ap-
pointed TO make the drive resigned I'M
eXpectedly. this plan was apparently
Abandoned