Evening star., 1928-02-01
VOLUNTARY UNION
Of TRACT|ONL|NES
|SBEL|EvED NEAR
Companies Negotiate on
Basis of Wilson Plan, Dis
trict Officials Hear.
COMMITTEES MEETING
DAILY TO CLEAR STATUS
Financial Condition of Capital Cor
poration May Push Issue.
Ham Urged as Head.

The Washington Railway 6S Electric
and the Capital Traction Cos. havs
virtually decided 70 enter into a volun-
tary merger on the basis Of the cardinal
features of the plan Of consolidation
outlined by Harley P Wilson. principal
owner OF the Washington Rapid Transis
Co, it Vas learned today from al
authoritative source az the Distri.s
Building
This decision. /; was pointed out. re-
moves the greatest obstacle IN the path
of the long-sought consolidation Of III.
transportation systems OF the Distrhs
and has brought merger closer to an
actual realization that all previous
negotiations for that purpose.
Negotiations Have Been Made.
The latest and most effective nego-
tiations 70 bring about a consolidation
have been going on quietly ever since
Mr.. Wilson submitted skeleton outline
OF his merger plan 70 the Public Uui-
ities Commission October 81 Daily
meetings have been held recently be-
tween special committees representing
the two traction companies. and at q
session yesterday afternoon il Is under
stood that the major differences wers
ironed out. A tentative merger agree
ment viii now be drawn IT, and ssie~
mitted 20 the owners of the traction
companies for their signatures
Just as soon as the merger agreement
is signed il viii be submitted to tie
Public Utilities Commission for its ap-
proval Congress vii ultimately have
TO approve the merger. however. before
it can be actually effected
While the details Of the plan ct
merger have not been revealed 70 tbs
Public Utilities Commission enough Ct
them have leaked out 10 indicate that
the Wilson scheme has been 'ssed a
the basis for the negotiations Th4
companies, Il Is reported. have cons
sented 70 accept the capitalization a
$50 O00. 600 as recommended by Nj.
Wilson. but have omitted from his plan
the per cent guaranteed return In
other words the companies are under.
stood 70 be willing 20 consolidate with
out being guaranteed any definite rr-
turn On their combined valuation and
thus take their chances Of earning .
fair return
The guaranteed return Vas tse eAsrt
objectionable feature Of the wlsca
plan. according 20 public utilities ex-
perfS and It's elimination from to
merger agreement which the ccnpariss
are said 70 BE- preparing % xsxn pe-
tends early approval of q coascsfdasSr-,
oy both the Public Csiasties Ccgnlnax-
sion and Congress
Ham Weald Keep Post.
New York interests which ccntrs!
large blocks Of stock In both Of tks
traction companies are said 70 Be III
SsSsent that William p Ham. president
q the Washington Raaray g. Eiecsrs:
Co. remain Sc the head of the crc-
posed consolidated company. Cnder th.
Wilson plan. however. it WAS explained
the hoard OF directors of the merged
company, consisting OF SIX representa-.
tives OF the Capssal Traction Co. IS
representatives a the Washington Raj
way & Electric Cc and three re0rs-
sentativeS Of the puzzle. sppoinsed ey
The Commissioners would elect tAs
president OF the merged COMPANY. ard
Ehss II Is Tcs possible 10 preGrrt %
this time whether Nr Ham or .tcha
II. Hanna president q ;aa fcrEnsr cur,-
pany, voal6 BE- elected. REPORTS hav.
been current thar Mr Wilson voo1S
head ths coaSoi.datsd company. but 4
IS known that he would not even con.
One factor which has fastened tbs
merger uegctia.scssS> = Was expsasnsS
is the financial c>NtS.sscn Of tAs Cartel
Traction Co. which Is now paving efvs-
deEcS cut ct IT'S SG-rfssS revenues 60
account % ieS Continual sNSS u revenue.
TIE TaScn,S Park ara CHEVY CA&Ss
lines il Was said are tAs esN c-Ss
o,srsted BY ths Cans.s' Traction O.
wnirh are not showing i>SSAS
Attaches ot .h~ rssea- Uei'StieS CeEs-
mission hs'~ Irs5i~assI shss oeesssse es
'Ns ansn~ssi s~>sssssss>,sS ef tNs Cscst~t
Trsctscr, Co. IL will ~ forc~S within B
Few wa~<S ~ scnrv fer A. tsscrs&se n
fa~A u~ieSS y rsS~~-er X ccyeS''~srnss~a
IN tNs -~>~~sSv.> NJ rs~~s fasirestes
scrse rs>,>sNs $50 sees tN> es-acsrs
was s>>n.~~,'<'astHs a<~S,s~ sSs ~~-saesNs
SS>ss f,,~ ~~sN~~.sV - se.>~s@sA tAs rae
~ far cs4s this ssfNssS>'> wsS fsrccrrt
" NA,, ,>~Nr~~~~ .,S>st& Ss~>~~> ~~Sss~AsS
= f~Nr NJ wfsS>> ~.ase ss>N>t. his ess1
ta>~ N~'~esnS sS>ut Voluntary cer~
ccli<2s:tca
Hanna l. SssenS,
Mr. Mama a>sea~s3 s'f'sre ,es
a,ilisl~S eScssr>s>>sea ~ e2eSte eeSs~
nc scEsav called - esessSs<ssT Naa Tex
,Aanxn,S several mates cf Ms cesss-
NAkSN ssstN. NSSs BfS S9<sssVS& ~ ~~<~N~FP
,hs reyNrsS IL fAs ysaesGseSst assSSe*.
These changes sT~s Designed crfSesstN
. inspr>vs schedules ~ esyEAsa ass~S
sas re<ssscsSca II expenses s2>o = n
fcssed
The SsMoanv Mr. Rsasa eSE>saGssSs
saS a mGlsscssciN NJ sesss& nsaisS Ss
shscA oersG<m no Necessary SsFVtce, n
the Scss<ss&ssS Ard asaksss
,stShs changes III >erxtce NsytsS<sSd 3sf~
ne the Ncs,-gssSe ac&&TS sAs tcssS,Any
,eliev~s. Ne said taas tAey can g>esscFva
. better ssgvlce Gssrsss the sssSa A>irs
e the Sav
The prr,eSsssl argument cs the S>g,a~
Many was presented BY J :. Nel~Tm
assistant ~ AIr Mamma W. aScsWse1
hat there WENSssS se Scxes cNsreasrneNA
SrrvSce daring eae aSls~yss>A geskSM
>as insisted that even With tns e0T~
tail service she S<srsssaS srSSsN
Affected wcessa have ample aeSSssAaasssa~
iS,SaS
Mr AAnaA essS tae senaNssca saAa
,p>etAt asteassea ~ sstlsS Sssea xAs
uaeS >>gVssIS IaSoass PARK and Cassx
>saaSs> tAS Iasy twe nN%S ss<s SasNnAs
/ kNSS IN revenue Al sasS ssEns TNA
'htes feature NJ sAs eseg>>Ss5 plan es
wruaSntS, ne sNs,sAats<i is IN chang
ne freaAssAcy 1t ssSSleS,
Q es~s-n=s~rs~e