Evening star., 1927-11-03
STREET CAR HEADS.
FAIL TO RECEIVE
PLANS FOR MERGER
Wilson Tells W. R. & E. Di.
rectors Proposal Is Not
Yet Completed.
EXPERTS HOLD METHOD
SIMILAR TO FORMER ONE
Capital Traction Heads to Meet
Tomorrow, but Problem May
Not Come Up.

Although the plan of Harley P. WI.
son for consolidating the transporta.
ton systems Of the District has been
officially before the Public Utilities
Commission for four days. 1t has not
vet been formally submitted to tho
boards of directors of either the Cap
ital Traction or Washington Railway
and Electric companies %
Charles j. Bell. chairman of the
board Of directors of the Washington
Railway and Electric Co., and George
f. Hamilton, who heads the director
ate Of the Capital Traction Co., both
revealed today that the only informa-
ton they have had about Mr.. Wilson's
plan Is what they have gathered from
the newspapers. Thus far. only a gen.
eral outline OF the scheme has been
made public. but Mr.. Wilson has In
dicated that the other features and
details would be submitted to the
commission at a later date.
Plan Still Incomplete. IS
The board OF directors of the Wash.
ington Railway 6 Electric Co. met
yesterday afternoon, and Mr.. Wilson,
member, who was present, merely
pointed out in the course of the pro.
ceedings that his merger plan was yet
In an incompleted state and not ready.
therefore. for the boards considers.
tion. Mr.. Wilson, however, II was
said, did explain, In response to q
query. that the plan was not similar
to the one conceived by the North
American Co. of New York two years
ago and presented to the District
commissioners, who then also consti-
tuted the Public Utilities Commission.
UTILITIES experts at the District Build
ing, who carefully examined Mr.. win.
sons plan, have declared that, except
for several minor modefica tions, IL il
practically identical with the one afi.
vocated by the New York investment
corporation. =
The Capital Traction Co.'S board
or directors will meet tomorrow aft
ernoon. but there Is no indication
that the merger plan will b consid-
cred.
Says He Talked to Owners.
Whether the stockholders In either
OF the Two traEtiou companies, aside
from the North American Co. which
IS reputed to have The largest single
noidmg or stock In the Washington
Railway. and Electric Co. and sub
stantiai holdings in the Capital Trac-
tion Co., have been advised Of the
various financial details of Mr.. WI
sons plan. Is one question that IN
puzzling the utility experts.
Mr.. Wilson pointed out In the gen.
eral outline Of the plan submitted to
the commission that he had devoted
much time and effort to the difficult
problem Of inducing the owners Of
the street railway properties to ac-
cept as a capitalization for the
merged company the earnings Of q
typical year rather than the court
valuation.
Legal Advisers Discuss Plan.
Mr.. Wilson and his legal advisors,
William G. McAdoo and Brice Ciag.
ett, discussed the mergen plan at q
three-hour conference today with the
members Of the Public Utilities Com.
mission. The conference was held be.
hind closed doors, and at it's conclu-
sion John w. Childress. chairman Of
the commission. issued the following
statement:
Mr.. Harley p. Wilson and his attor.
neys. Mr.. McAdoo and Mr.. Clagett,
came in to have a discussion with
the Public Utilities Commission and
the peoples council upon the proposed
merger. Mr.. Wilson wished frs to
set straight the published story of the
similarity Of his plan to that submit.
ted In informal conference by Mr..
Dolittle In June. 1926, with some OF
the stockholders Of some Of the trac.
ton companies and the officials of the
Public Utilities Commission at that
ftoaA l.
matter Is set forth in the following
memorandum presented by him:
"The suggestion has been made that
the rate base OF S50.000.000 for the
Consolidated Street Railways and
busses made this week to the Public
Utilities Commission Is the same rate
base discussed by representatives or
the street railway companies for q
consolidation with the Public Utilities
Commission in June, 1926.
Rate Base Lower.
"As a matter of fact, the rate base
Of $4,000, 900 represents a reduction
of approximately $11,00O,0OO from the
base suggested in 1926, and the street
railway companies never even COM
mitted themselves then.
The rate base discussed tentatively
in 1926 was approximately $51 ,00o. 900,
but this figure represented only the
transit properties as Of June 80, 1926.
inside Of the District Of Columbia.
whereas the rate base suggested in
the so-called Wilson plan includes the
transit properties both inside and out
side OF the District of Columbia and
also includes additions and better.
ments up to December 81, 1926, and In.
cludes as well the properties OF the
Rapid Transit Co.
ION the bassi Of the figure of $751;.
000,0 used in discussions Of June.
1926. the value as of December 81,
the properties of the Washington
Rapid Transit Co.. or approximately
$11 900. 900 over the basis discussed In
1926. ..s -
"Mr. Wilson also talked with the
commission as to the advantages OF
the ultimate need of traction merger
for Washington based upon its future
as the Nations capital and also from
both the economic and esthetic value
to the city and capital.
He had with him figures which
were the result Of study by his enri.
neers, which had convinced him, and
which he believed would convince the
public and the commission that his
plan would save approximately 81.
100000 per year. These figures were
not exhibited. but he suggested that
he would have a conferences next
week. at which time they would Be
gone into fully. =
Mr.. Wilson stated In leaving that
ne would in due season make applica.
tion for public hearing before the
when his proposed form
s In finished shape so that II could.
be acted upon by the proper aurhorf.