Evening star., 1928-03-02
CLAYTON REVIEWS
VALUATION ATTACK
IN MERGER HEARING
Federation Representatives
Seek to Show North
American Co. Holdings.
COMMISSION RESERVES
DECISION ON MOTION
Hanna Says List Of Stockholders
Has Been Filed With Con-
gress.

William NcK Clayton. chairman OF
,iro public utilities committee ot the
Federation Of Citizens Associations,
and william A. Roberts. vice chairman.
renewed their attack today on the $50
100000 valuation which is designed 70
serve as the initial rate base for the
proposed Capital Transit Co. at the
third of the hearings By the Public
Utilities Commission on the transit
merger agreement.
The federation representatives also
attempted 10 get into the record OF tn
hearings data showing the extent OF
the holdings of the North American Co.
of New York in the Washington Rail-
way e. Electric and Capital Traction
Cos. pointing out that it is OF vital
interest" for the car riders 20 know who
owns ami controls the traction COM
panies. Clayton moved that, If neccs-
sary, bona dde representatives o. the
New York Investment Corporation be
subpoenaed TO testify TO its holdings.
The commission. however, reserved its
decision OH this motion.
Hanna on Stand.
John H. Hanna. president Of the
Capital Traction Co. was on the Wit
ness stand for further cross-examination
when Clayton and Roberts resumed
their fight on the s50,000.000 valuation
Roberts said It was the purpose OF the
federation TO show that the So, ,5OO.ooV
value claimed By the companies ana
scaled down TO $4,000. 600 for merger
puruoses is based on reproduction costs
at peaE prices and that il is the duty
of the commission TO make new valua-
ton. If valuation Is made now. ne
declared, 1.-The value would be very Eocn
lower"
CLAYTON opened the hearing with
request that the commission order the
street railway companies TO supply IN
formation as TO the number Of cars they
own. when purchased, and the type. as
well as a record of the stock owned OF
the North American Co. either direct
lv or indirectly or through agents, Ii
the traction companies. To these re-
quests Mr.. Hanna replied that the COM
mission now has information showing
the equipment owned by the CapitaI
Traction Co. its age. etc. ana tilat
the North American Co. owns no STOCK
In his company IN such way tna. II
can be identified as being held oy tnat
company.
Stockholders List Filed.
The complete lis, of our stockho!dsrS
has been filed with Congress as oi DE-
cember 81, 1927" declared Mf. heIiMa.
1T is a bulky document. coGtanHls
$500 names. am informed that Il
will be printed and it viii then De pas
into the record"
William F. Ham. president OF the
Washington Railway d Electric 20.
interjscted that his company IS eGaaiiS
as willing TO put that information Ulto
the record. aud il was at this point
tha, CLAYTON asked the commission 10
summon competent witnesses 10 TESTIFY
as 10 the stock holdings OF the Sorth
American Co. in each Of the street rail-
way companies and subpoena them ].
necessary. 1t Is a very salient anc
important feature III this case 20 Anow
who owns the companies ne declared
Later Mr.. Hanna introduced aS an
exhibit list of the stockholders % hlS
company holding per cent or u1oge
OF the total shares Of stock as Of De-
cember 81. 1927,
Points TO Hansel Report.
CLAYTON said his reason FOR asking
that the companies furnish Il statement
showing the amount OF their eaQsI lnRn-
condition and type is ira; the $500 900
is 10 oe set up as added cap.t,a scg IT
alignment OF tracks and that :se new
company will star; wi.holt a cepcccla.
tion fund.
We arc interested In the ecndigicn
Of the cars. particularly these " tle
Washington Railway y Esecir,c Co"
he said. because the HanSei trarsNar-
tation survey report peiat,d cut ghS:
this company needed 500 new arS."
CLAYTON added that IL is also ,nlIoy-
taut Io know who are the Stockholders
". the two traction companies Il Sli>-
yNNSe the information Shows" he said,
that the North American Go, controls
the Wa>a.nStcN Railway s Electric CO.
Then What part Will the trustees p,ay
In the Iu,urc in tAs cCss$olidatrI ccsl,-
HanyF"
Cash Net Determined,
pucsas the Valuation discussions Aty.
Hanna referred IL the proposed cSpl-
tai,aattcn of the new company and eN-
planned thar ne stated IN his previous
testimony shat the amount ct cash ~
he turned into 1t by the Capital 1Tae-
tion CO. had not yet been determined.
hue that he estimate the fisure would
range besweeo 81. 800. 900 and s., ,oCN, ,g,A.
That statement did not carry che
implication" ne declared that the
value ~ ee put ~ public uSe would rep
resent that much money, In any eveat
NO additions wcu.d ee made to the $50
900 900 except Tor track changes
Col Harrison Eraad. tr,, vice char
man ~ the coa,msSSi,un, then sueStANsei
MIR, Hanna AS % whether the new gvssn~
lNany Is goins ~ have so pon,ooa a. a
rate base n0m which rettvetnentS must
ee deducted, The question SNHuld D.
settled on what basis vsttremensS aYS ~
he made, he said Mr.. Hanna Ycnl!e<a
that the reti|ements st,,ul& N made ~
tire basis at which the unit 1T value tS
carried III the $40 nao gaa In the dis
EreltNM Nf The commission