Evening star., 1927-06-13
BUS LINE REVEALS
OWNERSHIP CHANGE
Harley P. Wilson Takes Over
Interest of North Ameri-
can Company.

Ownership of the Washington Rapid
| Transit Co. was transferred from the
North American Co. to Harley P. Will
son, a member of it's board of direc-
tors, on June 7, it was revealed today
before the Public Utilities Commission
at the outset of public hearing on
the bus company's application for
authority to charge a straight 10cent
cash fare.
The transaction was first reported
to the commission by K. d. Merrill,
president and general manager of the
bus company, and later confirmed by
Mr.. Wilson, who declared that he
expected to supervise the manage
ment and control of the company
and Ito give Washington the best
possible service at the lowest possible
cost"
All of the stock in the bus company
formerly held by the North American
Co. in the name of Eugene Thompson,
trustee, totaling 1927 of the 21,612
outstanding shares, was acquired by
Mr. Wilson in the transfer. While
refusing to reveal the consideration
involved, the new owner said he had
paid the North American Co. 100000
and had given his obligation for the
balance at an interest of 6 per cent
a year.
Bought as Investment.
Mr.. Wilson explained that he had
bought the stock as an investment
with full knowledge of the unprotit-
able operation of the bus company
because of his faith in the future of
Washington. Although he is di-
rector of the North American Co. he
said that he acquired the bus COM
pany as an individual and in his own
right, and that the corporation
would have no interest whatever in
it's affairs.
Questioned by Ralph B. Fleharty,
peoples counsel before the Commits
sion, whether his ownership of the
company would interfere with con-
solidation of the transportation agen-
cies, Mr.. Wilson replied, on the con-
trary, that in his opinion a merger
would be facilitated.
II have studied the traction situ-
alton here" he said, land l firmly
believe that my acquisition OF the
stock of the Washington Rapid Transit
Co. will aid a merger. l am for a
merger 100 per cent and will endeaVor
to bring it about"
Mr.. Wilson spoke frankly to the
Commission and at one time over
ruled an objection of his own counsel
to answer questions propounded by
Mr.. Fleharty concerning his plans for
merging the bus company with the
traction companies.
I'm the event of a consolidation,
he declared, "the Washington Rapid
Transit Co. will go into it at price
not exceeding what the North Ameri-
can Co. paid for it plus the interest
and carrying charges. Any profit that
l may make will be the difference be-
tween the price l paid and the price
paid by the North American Co.
Active in Utilities Affairs.
Mr.. Wilson said he has been active
in public utility affairs for 81 years
and that he became member of the
board of directors of the North Ameri-
can Co. in January. While living at
present in New York, he announced
that he is now establishing a residence
in Washington.
In revealing the change of owner
ship, President Merrill of the bus COM
pany pointed out that the North
American Co. no longer had an in
terest in it and that he had discontin-
ued sending his weekly reports to the
corporation and was submitting them
instead to the new owner
The announcement of the sale did
not come as a surprise to the COM
mission, as it has been known for
some time that Mr.. Wilson was negO-
tiating for the purchase of the bus
company's stock. The commission.
however, thought that Mr.. Wilson'S
interest in the transaction was prima
rily to remove all doubt as to the legal
ity of the company'S ownership, since
that question was raised last Fall by
William Nick. Clayton. chairman of
the public utilities committee of the
Federation of Citizens Associations,
and resulted in long postponement
OF the rate case.
The need for a higher rate of fare
was emphasized by Mr.. Merrill, who
submitted exhibits showing that the
buss company faced a deficit of $751;
061.97 in it's operation during the
1926 calender year, and that it had
lost an additional $26.S91.89 in the
first four months of the current year.
Mr.. Merrill also explained that at
the time Mr.. Wilson acquired the
company it owed the North American
Co. approximately $324,00O, about
$4,000 of which had been borrowed
since April 80 to purchase new equip
ment remodel a portion of a Capital
Traction Co. car barn for use as a
garage and to pay obligations as.
sumed by the original management.