Evening star., 1928-02-26
Citizens Representatives Will
Go Before Commission
Without Instructions.
ACTION FOLLOWS REPORT
CRITICIzING UNITY PLAN
Eleven Objections Expected to Be
Laid Before Utili.
ties Body.

fede3aLlOn OF CitiZeES ASSOCIATIONS
early this morning authorized its public
utilities committee TO represent 1t with
out instruction during the public hear
ings before the Public Utilities Comm;s-
sion on the plan Of consolidation. This
action vas taken at special meeting
Of the federation in the boardroom o5
the District Building.
The committee previously had sub
mitted 10 the federation a report on
the results of its thorough study of the
uniflcation agreement. which embodied
II specific objections to various fea-
lures Of the merger plan. These obiec-
tions are expected TO be laid before the
commission.
Merger Endorsement Fails.
The tederatioU's final action came
shortly after midnight following q
series OF preliminary msneuvers during
which proponents Of the merger plan
endeavored 70 obtain an Endorsement
OF the agreement in principle. This
move vas defeated on an aye and nay
vote BY 42 10 IS.
Harley p Wilson. owner Of % per
cent Of the outstanding stock of the
Washington Rapid TTansi. Co., and the
author of the merger plan. witnessed
the federation's debate. and was HIM
self subjected to bombardment Of
questions after he had explained his
interest in the proposed uniication and
the steps he had taken to bring IL
about. He was accompanied By VII
liam Gibbs McAdoo. his principal legal
adviser. who also answered some Of the
N$ t>o Al H,-S en@
his remarks chiefly TO appeals 70 the
federation not to take hasty action on
so important and 50 complicated q
document as the merger agreement.
Brice Clagett. who Is associated with
Mr.. McAdoo. and Ralph B. Fleharty.
peoples counsel before the Utilities
Commission. likewise attended the meet
ing. but did not take part in the dis
cussions Mr. Fieharty had previously
notified James G. Yaden. president of
the federation. that he would accept his
invitation 10 sit IN OF the meeting as
an observer bit that he did not intend
to debate any phase o. the merger
agreeren, or 10 answer questions,
Expresses Confidence In Yaden.
A, the very outset OF its deliberations
the federation by unanimous vote ex-
pressed It's confidence in the honesty
and integrity and high purposes Of
President Yaden IN leading the fedora
..oil and the Citizens Advisory Council
they now occupy II civic matters Ia the
Dissric. of Columbia"
This action was taken on motion Of
Hugh Frarpton. who introduced long
resolution criticiSing newspaper attacks
on Mr. Yaden because cs his connec-
tion With the Washington Rapid
Transit Co. in which he is q director.
Ya6en left the chair during the read
ing Of the resolution and after its adcr-
ton returned and thanked the dele
gates He then gelinauiShed the chair
:or the remainder Q. the meeting and
DR.. George c. Hayeansr presided.
Mr.. Wilson was presented with
copy Of the II objections o. the fedora
tion,s public utilities committee when
he began his talk and upon It's coreiu-
sion answered each o: them.
Objections Are Outlined.
The objections, WIKI Mr., wilson's
answers, follow
/. The proposed valuation Of sSs,+oo,-
900 IS unduly high and no: repre-
sentative Of the value ~ the transit
pINSSEN4<'S lux ilSS XXX Sk&s sNVSA>
Answer. The real value IS SSs. .Soo.NCc,
, There should oS 10 fixed rate ot
eetu-n ~, valuation FOR an Indefinite
period as proposed u the agreement,
Answer, The companies have
right 70 earn fair return on a vasaa-
tics, and the cNc;.reS have held that .
per cent rate ct return IS fair.
). The plan pyclNsSsS \ '>rSrresnM
franchise by 10. naming any PERIOD
for which the Capital Transit Co
should b. chartered To this We chisct,
Answer, The same e<N,1!Iicn pre-
walls now with rsSi>ecs 20 the street car
1, Information Shca,d b. furnished
as u whas 6t>sNS$l.io,l IS - be made
Of Ssprsciat.en reserves and surplus
III the ccfferS O. the preSSas cNn-
ps.,seS, cci'cera!rS SiSpc$issen ef which
the pact between the ccr,l>sases Is
silent;
Wilson Gives Answer.
Answer; The Companies are entering
\ Gepssciats3 value when specifying
$50 eto coo as the rate SsS,
4 2'here should X a provision in the
agreement and III sSe charter IL es
granted by CcslSseSS feg adjustment W
,aee, difficulties
Answer, There is nothing IN the
charters NON With reSsNsSs ~ the aS~
luSsmeatS of lasN,g &t;fCultseS know
NJ nc prrSs<sens fcg the c>,ganstssseS
SugssSstoA,
Z r,,er $ho>std ~ Aali.gase rates
tcs Schoel eh,ldgen IN al street cars
AMI n,ctcr ess>>>S,
Answer. l gasts as~es wtsA the c<syn>
mlstec am t@ ths ksa3seS al the
time, II had my NAY I wvasld les
Them ride tree The eSlscat{,,n ~ cur
c,slsdgen y more important than the
>tgV~s car, HVs the eCss~
t&ase> must eaSe a fair s~tayn M sae
value ri their pg<geysy,
& The federation sAcs,d resueSE
rerSssslnssscn between Hagley T. Wiz
SnnS written statement that he MAS %
SET Nc psSsits tNtsla sale VI sAe WAShiNS~
ton Rapid Transit CO t. the pscysSsu
cSNn,sNaNN and the prsce N
N,ssS.ocN 20 ee Charged by him $SsS
900 IN cash with nsereSt. and $SsAeN
III assumed cAl.2asieNsS W ths bus cSra-
cefa and aS ~ wsNstheg this transaction
IS a sale M SssSS " merger,
Agreed ta Sell taarsaS,
Answer l e>Mssht the Washington
Rapid Transit ca, tvx $NSS aetA the fx.
are set tosth IN th@ asgeSlNens, WhSn
| purchased II fs<aN the N<1sh AmsYs.
van INo l agreed ~ Setl il without psx>Fts
IN the lnteseSe NJ the aseySer I hs~
hssatea thai S~NssgaeG waeN Nsaxs,s
the eass sSN,g,asN, Aty e<,assass WAx
that Ii the merger IS esysssAt aeAAas
axNh A -