Evening star., 1928-02-10
TRACTION MERGER
COMES UP MONDAY
Plan to Be Presented to Com
mission at That Time.
! Prompt Action Sought.

The public utilities commission made
active preparations today to receive the
street car merger agreement which has
been subscribed TO by the boards OF
directors of the Washington Railway
and Electric and the Capital Traction
Cos. The directorate of the former
ratified the agreement Wednesday and
the directors of the latter company
took similar action yesterday afternoon
at their regular monthly meeting.
According to information received at
the commission. the agreement will be
formally submitted Monday, Coinci-
IDENTIFY with the return from Haiti Of
John w. ChildresS. chairman. The COM
mission plans TO make 1t public in,nle-
ctately upon receipt.
Consists of 4.s0o Words.
The agreement. it is understood. con-
sists Of eight legal-sige pages typeWrit-
ten single spaced. or about 4.500 words.
Much OF it is said 10 be written in
language that can be understood only
by lawyers.
While the commission is anxious to
expedite public hearings on the merger
pian with a view TO getting II to Con-
il may be forced TO delay the procedure
for so days on account of a section of
the organic act OF the commission
which stipulates that 30-day public
notice must be given before undertak-
ine a hearing which involves valu-
alton. The commission. however. not
having been apprised Of any Of the
details Of the agreement, except
through the press reports, is not GER
tain that It contains an agreed valu-
alton provision. Nevertheless. steps
have been taken to preclude a delay
over this point, and Corporation Coun-
sci William w. Bride. who also serves
as the commissions general counsel,
has been asked for an opinion as to
whether the commission will be requir-
ed TO wait 80 days before starting hear
trgs should an agreed valuation be en-
bodied in the agreemen-.
Confined to Financial Plan.
The street car companies. 1t was
learned. are having the merger agree
ment mimeographed in anticipation Of
o demand from civic leaders and others
interested in the plan under which 1t is
proposed to consolidate the companies.
Col. Harrison Brand. acting chairman
Of the commission, already has put In
o request for number OF copies for
the use OF the commission and the
press.
Aside from the details of the agree
ment which leaked out after it was
learned that the companies were in
volved In merger negotiations. John H.
Hanna, president of the Capital Trac-
ton Co.. revealed in a communication
to representatives of the Amalgamated
Association Of Street and Electric Rail-
way Employees Of America that 1t con-
tairs no plan Of operation. but Is con-
fined TO financial details. both as to the
method Of securing reasonable return
on valuation and distribution OF bene-
hts.
Attaches OF the utilities commission
also believe that the plan contains some
features that the companies can hardly
expect either the commission or Con-
gress TO approve, which viii be used for
the purpose OF bargaining while the
agreement is under consideration. It
has been reported, too, that the agree
ment has considerable public appeal in
the form Of improved service and uni
versal transfers.
Another problem contributing the
commission which will be ironed out
before the agreement Is formally SUBJ
mitted is whethers it~scAn legally be
considered until II has been ratified by
the stockholders Of the companies. The
car companies, however. intend TO SUBJ
nit the plan before II has been acted
On by the stockholders. and IL the COM
mission decides that It cannot legally
consider IL without such action, it will
Be withdrawn and resubmitted follow
Ing the approval OF the stockholders.