Evening star., 1928-02-21
Merger Plan Based on Raise
Will Be Fought, Sen.
at0r Feels.
STOCKHOLDERS LAUNCH
ATTACK ON PROPOSAL
Transfer Provision in Approved
Plan Is Discriminatory, They
Assert to Fleharty.

Chairman Capper Of the Senate Dis
trlct committee. expressed the belief
today that Congress would not be like
ly to approve street car merger plan
that contemplated an increase In fare.
He gave this opinion in commenting
on calculations by Utility Commission
experts yesterday, indicating that the
proposed agreement as presented to the
commission might necessitate a 1-cent
increase to provide per cent return.
Senator Capper said he would have
to have more facts than he now had
before he would be willing to favor q
merger. If it was to result In a higher
fare. He said he regarded the valua-
lion as one of the most important ques-
tions to be gone into by the commits
sion in considering the merger plan.
Stockholders Protest.
Rumblings of disstisfaction among
some Of the stockholders of the Capt.
tai Traction Co over certain details Of
the stock manipulations provided In the
street car merger agreement xere
heard today by Ralph B. Fleharty. peo-
pies counsel before the Public Utility
Commission, and served to throw scare
into those who are hopeful Of an early
solidation Of the transit lines
Mr.. Fleharty revealed that several
Of the stockholders appealed to him to
assist them in opposing the stock trans
fer provisions in the agreement, which
they charged are discriminatory. Their
complaints are the first that have been
heard from owners OF either OF the
fractions stocks since the agreement
was submitted formally TO the commits
sion. Mr.. Fleharty announced that he
would be unable to aid them. as his
duty Is to represent the users Of the
utilities and not the owners
Any decided opposition among the
stockholders Of either company. 1t was
pointed out, might defeat the proposed
merger. as the agreement drawn up and
subscribed to by the directors Of both
companies specifically provides that :.
shall be ratified by the holders OF two
thirds Of the stock Of record In each
No objection Is expected from the stock
holders of the Washington Railway &
Electric Co. and should any develop. It
was said. Ii would not be . serious fac
ter. as the North American Co. Of New
York owns controlling interest in this
company and it IS supporting the mer-
ger.
Works on Valuation.
Another important development IN
announcement by the commission that
IL has undertaken computations 70
bring up TO date its valuation Of the
street car properties on the reprcdllc-
tion theory. for comparison with the
$50. .00o 900 initial rate base called for
In the merger agreement The COM
missions figures viii only include the
property used and useful" In the Dts
trict Of Columbia. although q separate
report viii be compiled listing the
property Of the companies In Maryland:
which have claimed value os
The commission. 1t was said. does not
intend 10 permit the value Of properties
outside OF the District 20 be used IN
valuation for intra-District rates. but
will make the compilation In view of
the request Of the companies that the
$4,000. 900 be included.
The commission also Is considering
the inclusion II this valuation Of $SlS.-
900 for the Washington Rapid Transit
Co. This Is the amount reported 70
have been paid for its stock BY the
North American Co.. which later sold
IL 10 hATry Z. WILSON.
Mr.. Eieharty indicated that he in
tended 10 ask for An explanation of this
figure. IN view Of q provision IN the
merger agreement scr paying Mr.. VII
son $S9e.oCO. with interest, for 9S pe.
cen, Of the stock he owns. plus $sSo.ooo,
the bus ccmpanyS assumed
Mr.. Wilson assured the
at the time he purchased
The bus company that he would rur is
into the merger 1t exactly the price he
paid for Ii. plus interest and carrying
charges.
Stock Owned by Women.
The remaining > per cent cf the BIS
stock Is owned BY - tnSl-
vscualS. 20 Of whom are women. They
hold STS shares. but no pcovsSscN is
made for this stock in the merger agree
ment,
Mr.. Fiehar:y to-day accepted An snys-
tssion OF James @, YaceN. president ~
the Federation 0 Citizens Associations.
To attend a SPECIAL meeting ef that or
sanisassan Saturday night, which w.N
pc oevcted entIreT u discussion ~
the car merser
The peoples counsel has promised h
toln with the utilities ecnaniissee Of the
federation III Nnjscttng 10 certain feA~
lures az the merger agreement e0t he
told MIR, Yadcn that he would not er,.
vase In a discussion " express his views
an the nocg cS the federation
The Citizens Advisory Council a,$c
plans IL discuss the nserNer at its meet.
ans Thursday night, Earl Y, rSher, sx~
eeasivs secretary NJ the utilities Sx9a.
has eeSn requested ~ attend
and explain the various details ~ the
merger agreement,
Nerr& Secs Opposition.
An examination ef the prV,y~,ss>a nes~
ser p.an will he startling IL every eiss,
aen who has taken All interest In the
question:" Senator Norris. Republican.
u Nebraska. declared t<SsAy.
The Senator exlS~SSeA h2S cptnsea
" the plan while pyeSenthns fcx the
eSNard an eSlitM.a, sNAna 4 k>csse nsagnNas
newspaper. Tie further declared hS
,eltef that the merger plan nov NsAasy
will In my fuctsmeNs
'hs,ck CosssreSS"
fNitr ANEDrEN