Evening star., 1928-05-22
Subcommittee win Be Named
to Study Problem During
the Summer.
$4,000 FUND ASKED
FOR USE OF BODY
Inquiry to Revolve Around Meth
DDS of Fixing $5o,o0O,0O0 as
Properties Value.

Action on the street railway merger
plan was laid aside definitely until the
next session of Congress when the Sem
ate District committee decided today to
appoint a subcommittee TO go into
the question during the Summer.
The committee instructed Chairman
Capper to prepare a resolution, TO be
introduced in the Senate Immediately,
asking for a special fund Of $4,000
with which TO employ experts to assist
the subcommittee in its study Of the
merger agreement. 1t was indicated
that this inquiry viii revolve principal
ly around the valuation, which has
been placed at $4,000, 900 in the mer-
ger agreement.
The decision came in executive ses-
sion after more than an hour Of dis
cussion, In the course Of which q mo-
ton to report the merger plan to the
Senate 80 that the Senate itself could
decide what 1t wanted TO do was voted
down.
House Reports FavorabIy.
The merger resolution, authorizing
the railway companies to consolidate IN
accordance with the terms Of the agree
ment they worked out, was reported
favorably by the House District COM
mittee more than a week ago. The
possibility Of action by Congress at this
session hinged on the meeting Of the
Senate committee today.
1t Is understood that on the question
Of whether the merger plan should be
laid before the Senate at this time the
committee stood to 2. Senators Cope
Iaa - WvS-
Democrat, of Utah, felt the question
should be submitted to the Senate 50
that body could discuss 1t and decide
what it desires to have done. It was re-
ported that Senators who took the op-
posite view were: Capper, Republican,
of Kansas; Vandenberg, Republican, Of
Michigan: Blaine, Republican. Of Wis
consin, and Glass, Democrat, Of Vir-
ginia.
The committee then reached the
agreement TO report out q resolution
asking for the necessary fund TO carry
on . study Of the plan during the
recess.
Cousens Asked to Appear.
Senator Couzens, Republican. sf
Michigan. Is not q member Of the Dis
trict committee, but was invited 10 the
Senator Vandenberg, because Of the
experience he had as mayor Of Detroit
in dealing with traction problems. It
was learned that Senator CouZens told
the committee that he did not think
there should be fixed valuation for
period Of years. because he regarded
the valuation as a fuctuating factor
It was said that he also discussed with
the committee the question Of what
should be the rate Of return on the
valuation.
It was learned that the committee
also gave some discussion to data pre-
pared recently at the request Of Senator
Vandenberg. showing q comparison of
rate bases for railway lines In other
cities comparable to Washington.
Capper Resolution.
The resolution TO provide the COM
mittee with funds for its Investigation
was introduced this afternoon BY Sena-
tor Capper and referred to the commit
tee on audit and control. It reads As
follows:
Resolved. That the committee on the
District Of Columbia. or any subcom-
mittee thereof, hereby is authorized to
employ during the sessions and recesses
OF the SEVENTEEN Congress such ex-
pert assistance as may be deemed ad-
visable to aid said committee or sub
committee In detailed investigation
of the plan Of street railway merger
and the unification agreement therein
mentioned, as embodied In Senate Joint
resolution No. ISS.
For such purpose there Is hereby
authorised to be expended a sum not
to exceed $4,000, TO be paid from the
contingent fund Of the Senate upon
vouchers properly approved"