Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-02-27
MERGER GROUPS
PREPARING CASES.
Valuation and Earning Rate
Held Most Objectionable.
Hearing Wednesday.

With hearings on the street car mer-
ger agreement scheduled to get under
way before the Public Utilities Commits
sion Wednesday morning at 10 o'clock
all parties to the proceedings were today
making final arrangements for the pres
entation Of their arguments,
Ralph B. Fleharty. peoples counsel
before the commission. announced that
he had virtually completed the prepa-
ration of his case with the exception
Of studying the opinions Of various or
ganizationS and individuals that have
communicated with him. The consensus
of those who have written him, Mr.
Fleharty said. is that the proposed ini-
tial valuation Of $50000,000 and the
fixed rate of return are the most OBJ
jectionable features OF the merger agree
ment.
These letters Mr.. Fleharty plans to
introduce as exhibits during the hear
ings. and they will be made part of
the record.
Plans Federation Case.
William A. Roberts, vice chairman OF
the public utilities committee of the
Federation of Citizens Associations, also
was busy putting the final touches on
the arguments he plans to make in be-
half Of that organization. The fedora
ton at a special meeting Sat-
urday night after a concerted effort
had been made to put that organiza-
ton on record as favoring the merger
agreement in principle, authorized its
utilities committee to appear before
the commission without instructions"
The utilities committee has drawn up
IL specific objections to the agreement
In its present form. and all of them
are expected to be laid before the COM
mission. since no instructions were given
the committee.
Mr.. Roberts made all appointment Ia
confer with members OF the Utilities
Commission this afternoon to discuss
certain phases of the merger plan. In
conversation with Early V. Fisher. exec
utive secretary Of the commission. he
said the primary purpose of his confer
ence is to explain the committee posi-
ton with respect to the merger agree
ment
We OF our committee are not OBJ
structionists." Roberts was quoted as
saying I'VE want a merger; We want
the commission to know our position,
we will volunteer our assistance In
bringing out OF the hearings merger
plan which will be best for the Interests
of the public. at the same time being
fair to the owners Of the utilities"
Prepares Analysis.
With the assistance OF its experts.
the commission has prepared an ex-
haustiye analysis OF the merger plan,
and mapped out program OF proceed
ure at the hearings.
}N t,{c nanh =
graph OF the agreement will be con-
sidered and many will be disposed of
during the hearings which probably
will be held every day, excluding Sum
day. from 10 am. 10 3 pm, with a
brief luncheon recess. The hearings
are expected to continue for at least
10 days.
Fisher has agreed to furnish the
peoples counsel each night with a
transcript of the record OF that day.
While the program of procedure Will
not be made public, because 1t may De
necessary to digress from It at times,
it contemplatcs permitting the COM
pany officials 10 submit their plan and
arguments first. It has not been de-
cided, however when they viii be cross
examined by Mr.. Fleharty and repre-
sentatives of the utilities committee OF
the federation.
Organized labor, It IS understood,
plans TO have representatives at the
hearings to fight for the inclusion in
the charter OF the proposed Capital
Transit Co. a clause 10 protect the en-
ployes William Mex. Clayton, chair
man OF the utilities committee Of the
federation. has been requested to serve
with the labor delegation.