Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-03-08
WILSON BARES PART
BUS LINE WOULD
TAKE IN MERGER
tccntinued from First pase. /,

tContinred from First page)
paid $4,000 for their 375 shares of bu,
stock. Wilson explained. on exactly the
same basis pail: him for his stock. Will
son owns aS per cent plus Of the StocS
in the transit company,
In advance of the organization OF tho
new company. Wilson outlined. he woulC
bring about an entire liquidation OF the
bus line and transfer To the new com
pany its feasible assets
/ "This would not add cent To the
rate base" he declared. and explained
that the bus line asks for no rate OF re-
turn.
! Such liquidation OF h, bus line. he
testified. could b" brought about in ~
DAYS
/ Wilson outlined as benefits to be de-
] rived from the merger a saving Of APP
/ proNimately Sl000.000 through re-
! routing and other changes. Under an
/ examination by William A. Roberts OF
/ the Federation of Citizens Associations,
] lust before the noon recess. Wilson ad-
! mitted that he had never gone behind
a public utilities commissions decision
In seeking a fair rate of return In all
his experience in utility enterprises.
Roberts tried 10 pin him down to a
direct answer as to whether he be-
, lievcd the District Public Utilities Com
mission would be less fair after Wilson
had said Tie had always heretofore
obtained rates Of per cent or more.
The traction official said he did not
believe the local commission would be
less fair and cisclaimed the inSiruatlon
when Roberts suggested that it was thu
purpose To seek a fair return through
Congress
Further examination revealed that
Wilson mas sold out all his traction
holdings except stock in the transit
cnmpan~. the traction H;acnatc tesfi-
fyine that hs did not consider street
railway investments good proposition
In spite of the fact that he did not
know how much the transit company
lost last year, Wilson claimed 1t would
be on A profitable basis by the time "
is taken over IN the merger agreement
through new and improved business
methods.
Quotes Stock Price.
In the purchase OF the minority bus
stock. Wilson testified the plan would
contemplate treating each share exactly
alike
The price quoted by Wilson for the
AIS minority shares would be S2s on
par value of $40.
Mr.. Wilson said it was entirely prob
able he had paid TOO much for his stock
in the first place. but claimed he mad
looked to the future. believing Wash
inpton is destined 10 be very great
CITY He explained there is no relation
between capitalization and the rate
base in public utility enterprises. citing
q company he knew OF which was capl-
talized at $4,000. 900. yet had rate
base of S220.00o.000
The capitalization OF the proposed
merged companies here would be
$50 so9. 600. tentatively. He declared
the proposed S50,oi5. 900 rate base does
no, include any part OF the net quit
assets turned over. except when the new
assets are converted into extensions.
hetterments and improvements.
After explaining the part OF the bus
line in the merger plan. Wilson went
into an explanation of the two primary
benefits he believed would accrue To the
companies and the public through the
merger. These he outlined as improved
service and economies.
Outlines Survey.
Outlining the 10 different surveys
made of conditions here. Wilson said
he had directed his engineers to check
no on all features with view To i'm
proved service and merger Of the
companies with the least possible capt.
tai expenditure.
He said he would not now offer A
plan for realignment and unified con-
troll under which savings could be made.
but would leave that to experts who
would be put on the stand The presi-
dent of the Washington Rapid Transit
Co. also is 10 give such details as the
commission may require as 70 the oper.
alton OF the bus line.
Excl. sive OF savings In crossing
policemen and paving. the merger would
save upwards OF 81 900 900, as have
stated repeatedly" Mr. Wilson declared
Mr.. Fleharty and Mr. Wilson engaged
In considerable discussion over the
possible effect that the inclusion of the
bus line in the merger would have on
he valuation.
Wilson finally made IL plain that y
there were a revaluation at some future
time. the Tevaluation so far as rate
making purposes are concerned would
take into consideration the additions
and betterments of the bus line only
from the date OF the merger agreement
Lists Stockholders.
william r. Ham, president OF the
Washington Railway 8; Electric Co.
introduced statement yesterday OF
persons holding / per cent or more of
the capital stock of his company. There
are Ave OF these: The North American
Co. with 1850 shares: Crane, Paris
IL Co. 1902 shares: Arthur w Fisher,
Ait. Edwin Gruehl. $50. and John J
Eoonan. ] 500.
Crane. Paris a. Co Is said to bc
holding It's shares for the North Ameri-
ran Co. making that corporations hold :
ings less than 81 1852 Of the $50, 900 out
standing shares. This was said b.
others than Ham Fisher Is the Aecrn.