Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-02-17
NEW LINEUP SEEN
IN MERGER DEBATE
Federation May Join With
Peoples CounseI-10 0b-
jections Urged.

The Federation OF Citizens Associa
tons may align its forces with Ralph
B. Fleharty. peoples counsel. before
the Public Utilities Commission in
the forthcoming street car merger
hearings rather than present its case
independently. This was indicated to-
day when William A. Roberts. vice
chairman of the federation's public
utilities committee. made an appoint
ment to confer with the peoples
counsel
The utilities committee of the fedora
ton already has mapped out tentative
procedure to follow at tie merger hear
ings. which it will submit TO the full
membership of the organization 10!
approval. The program. which amounts
TO a virtual declaration OF var on the
merger agreement now before The
utilities commission. vas drawn up az
a special meeting OF the committee
last night in the Office OF David Baop
in the Southern Building, Mr.. Babp
is secretary Of the federation and a
member of its utilities committee.
Items Of Objection.
Ten major items OF objection were
adopted By the committee 10 b. re-
ported 10 the federation They follow ::
The proposed capitalization Of s52.-
400 900 was called unduly high and not
of the value of the
transit properties for merger purposes.
There should be no fixed rate Of re-
turn on valuation for an indefinite Pc
riod as proposed III the agreeulsnt-
The plan proposes ''perpetusl' fran
chiSe by not naming any period for
which the Capital Traction CO, should Be
chartered.
information should oe furnished aS
10 what disposition IS TO be made Of de-
probation reserves and surplus tn The
Golfers OF the present companies.
There should be universal free trans
versa, instead Of between sireeE cars
alone
There should be a provision II the
agreement ard II the charter 10 De
granted oy Congress for adjustment of
labor difficulties.
There should be hal.-:ava rates Tor
school children on all s.-st: cars sni
motor buses.
Wilson Statement.
The federation should request an en-
PLANTATION OF Harley p Wilson's written
statement that he WAS - sc. no isrU...
from the sale Of the Washington, Rapid
Transit Co. 10 the consolidated con.-
pany At the price of Sl.i$6a9s 80 b.
charged by him. $500 900 IN cash. with
interest, and sSS0.ooo in assumed oeis-
cations Of the bus concern.
The merger authorizations Shou \
contain mandate that transportation
service under unified operation os su-
psricT 20 present service oy the CORE
caNies operated separately.
Resale OF the Potomac Electric Power
Co. 70 unrelated transit cor,pan.ss oy
he consolidated company should not
y permitted and at this time thsre
should be tiNed rate for power eo.i.ht
~ the merged company from this
Electric Power Co.
The provision III the c,ergSr agree
rlcnt for board If directors Of IS.
hree Of whom would b public repre-
'@DtativeS. might result in the Public
Utilities Commission losing coUs-cl cs
lis new corlpSDy. II vas intiGratsd BY
William Mex CLAYTON. chairman ~ the
,cmnittee This might be accomplish
& he said through the mcdiun, eg ,i,<>
hree public directors
Urges Thorough Study.
Ccl Harrison Brand. vice chairman
Vi the commission. said that a thorough
tudy would he made ct this feature ci
he merger plan FRANKLY, I don't
understand how such condition car
'>,St," he said I tail IL see how
,cav6 so constituted can function As
: now stands the commission represents
he public. II is true w do not SIT ~
meetings of the hcagds If directors ~
he transit companies. but We Go keep
II touch with their activities"