Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-02-26
Federation GIVES
COMMITTEE RIGHT
TO ACT IN MERGER

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Continued from First Page)
My obligation ends ct the expiration
OF that time. I will then do with it
what / please.
9. The merger authorization should
contain a mandate that transportation
service under unified operation be SUI
pcrior to present service by the COM
panies operated separately.
date In the Public Utilities Commission
a body created by law to regulate sery-
ice. 1t is not the purpose Of the COM
panies to usurp or infringe on the
prerogatives Of the Public Utilities
Commission.
10 Resale OF power bought from the
Potomac Electric Power Co. TO nom
related railroads should not be per-
mi.ted nor should q fixed price fof
power be named in the merger act.
Answer: Well. I think. If the COM
mi,tee understood that situation il
would not have written that down. This
is TO be done merely to save duplica-
ton.
IL. Cost of securing authority for
merger. attorneys fees. etc. should not
be chargeahle in unlimited amount to
the new company.
Answer: / don't know whether the
committee means whether il wants TO
pay this cast. or for me to pay 1t, o.
for me to pass the hat around. II Is
customary. I believe. to have expenses
Of tina. kind paid by the beneficiary.
Wilson Cross Examined.
After answering these objections. Mr..
Wilson was subject to further cross
examination.
William Mex Clayton, chairman oil
the utilities committee. told wilson
tina. a flxed valuation. as called Tor
In the merger agreement. us2rps the
powers Of the utilities commission IN
setting a valuation upon the proposed
consolidated company.
That's exactly what We want the
commission TO do--arriye at that VAL
uation OF $4,000 ooo." answered VIII
SON.
w. Fl. Richards Of the Mid-City Git
izeis' Association thnn asked Wilson
If he was willing TO eliminate the fixed
valuation and insert in lieu thereof
such valuation as the Public Utilities
Commission Will determine"
Wilson replied. No"
Earlier in his talk Mr., Wilson said
that the Washington Rapid Transit
Co. based on a prepared budget would
earn net return OF $4,000 this year.
William 4. Roberts. vice chairman OF
the utilities commission. reminded him
Of this statement by saying,
According 10 your own statement
YOU are earning 10 per cent. They
why don't you reduce fareSs"
If at the end Of 1928 We earn $SS,-
COO" said Wilson. we Will reduce fares.
merger or 10 merger"
Urges Open Mind.
McAdoo urged the federation not 10
form All opinion on the merger agree
meni without serious consideration IT
is too complicated for haSty action ="
he said 1T should not b. passed
upon in one evening My earnest Sug-
gestion Is that instead Of putting forth
objections to the plan and opposing II.
You offer your suggestions 10 the Pub
lie Utilities Commission, The SureS.
way 10 Set in wrong Is 10 question the
motives and inpugn the character Of
the honorable men who are tryinS 10
do a grea, public service"
The utilities committees objections
to the merger plan We're presented by
WV NASAkahAt AeSA<ASS. VIM
that tbs committee and everybody
Wants merger. hut at what price"
After reciting these objections Clay
ton moved that each item D. c<IlSid-
cred Independently, but after discus
sion decision Was reached 10 take ae-
ton on all the objections collectively
Then Col Henry G. Newcomer moved
that the federation &pprove the aui-
tcation agreement In principle. leaving
the details objected 10 by the commit
tee to the determination Ut the util-
tiles Commission. but this motion was
lost and n. A. BowleS If the Geoyxe-
town Citizens Association moved thai
the committee ee authorized 10 ar
pear before the Utilities Commission
and represent the federation without
Instructions,
This motion was adopted after an
amendment IL commit the federation
10 the IL objections had been voted
down.
The federation voted thanks 10 the
Charles Hansel Consulting ENGins<,iS
for the costly and comprehensive trans
instance III the federaticnS utilities
eomnittee.
Meeting et Stockholders.
The Stockholders af the Washington
Railway 4 Electric Co will meet
March Ia "a pass ugon the un,tleaticn
ag,eement drawn ny and apssgoved by
the directors M that Company and the
Capital Traction CO, The OWNERS NJ
the latter Company vNa meet the fA-
lowing day for the Same purENs$s
The merger agseement spveissea,N
provides that IL shalt b ratified by the
AANas as skkx4z NJ haA ar IN
record Ut each company, The sasA ~
the proposed consolidation REALLY rests
with the owneTs esNeause NJ this psrvl"
Sion, even though Il IN approved eN u,>
Public Utilities tSanMiSssoN
The commission has mapped nut a
tentative program for the conduct NJ
the public HEARINGS ~ the agrvemsnt,
which viii begin "Wednesday mcsnsns
AT 10 o'etsgs. III the eeasd rtssM NJ the
district huilaa,a, With view to eSAn-
plotting them Within 10 days. tAereeS
allowing sussselent S,me 10 reach de-
e,s,cn eetore NV meetings u the