Evening star., 1928-04-28
CONTROL Of PEPCO
LAID TO OUTSIDERS
Citizens Association SpokeS.
man Says North American
+: Firm Has Chief interest.

With the Senate District committee
planning 10 conduct preliminary near
Ing on the traction merger next Tues
day. the House committee today directed
its main attention TO the controlling In
terests Of the North American Co. IN
the proposed merger. and its effect on
the Potomac Electric Power Co.
william A. Roberts OF the FeneTataon
az Citizens Associations. Eho was again
heard today, declared that control OF
tire washington Railway 6s Electric Co.
and the Potomac Electric Power Co.
reaches back directly TO the North
American, in which Harley p. Wilson,
chief hacker Of the merger Is director.
He expressed the opinion that the
amendment for the La Toilette anu
merger act still makes unlawful the IN
direct control which the North Amer
tcan would have over the local power
concern in view Of Its holdings IN the
Washington Railway IL Electric 20.
Probes Transit Finances.
THE amendment. he declared. ex-
eI,,deS the street railways from infllDi-
fsons Of foreign control" but he added
fhat the indirect control which the
f1iIllic utility corporation has IN tne
Pepco is contrary 70 provisions OF Inc
The committee also interested itself
In the finances Of the Washington Rapid
Transit Co, which Is included IN the
merger. and Col. Harrison Brand of the
s-u3=c Utilities Commission, helped 70
explain how the company IL affected.
Brand declared the new consolidated
Company would guarantee the $3.50 .OO0
liabilities Of the bus line. and would
pay wilson $4,000 for 90 per cent Of
the stock.
Action More Doubtful
II appeared more doubtful than ever
tocsy that Congress would act on the
merger ~ this session. DECISION of the
Senate District committee % postpone
It's general hearings untD there II some
indication IF Ena+ the House INTENDS
to 90 served 10 strengthen this belief
Since present fares ale ~ continue
Until January ]. 1929, under the merger
agreement some " the House MEM
befs co not Gee any necessity IN being
rushed ~ report out the Joint reaoiu-
ton which would piase the stamp of
congressional approval on the merger
plan.
The Senate committee giIl help mat
teas 6onaeBh&t BY holding special
hearing ~ 10 o'clock Tuesday morning
" have the merger plan summarized
b. SDokeAuaen for the advocates and OPP
poneHtg, but the committee does not
Intend 10 launch into d detailed 1is~
c9lsElon of the question until the atti~
tUde of the House Is mace known.
Discussion Yesterday.
ya.ss program was tne net result of {
brief discussion ~ u5e traction situa
lion yesterday afternoon Chairman
CsDpef asked his colleagues H1a
course they wished W pursue With re-
gard 70 the merger proposal. Jh'
ylenQDegg present agfeed there Wss iitt4'
u De accomplished by going ahead VIII
geaFtUgE B8lle the House group II slD
~ wofk taking similar testimony
Senator Cappef Eaid i}}e House com
f4lttee SeengeG ~ be Developing iu!I IN
formation concerning TIE valuation an'
that the transcript ~ evidence bas I3e
M furnished the Senate eHamitt1
lrota csy W day
Whether the House committee staoilb
merely approve or disspDfoye the JOIN
resolution authorizing the merger We
81 issue raised Dy Representative beii
~ Illinois. VINO oolsgts the authority Y
amend Il
10 1925, Reid explained. Congress bai
provided q method NJ bringing shout
3aeEger end the Public UTILITIES Com
mission BsS charged with the Wofkn
OUt NJ LIE details, lie said the ~
traction companies AaG Yoi9plStb
reached an agreement fH consglldatiJ
END sfteT hearings tie Fu1iN ptlllgle
Commission hse spprogeo tins p!sas ~