Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-06-22
STUDY OF MERGER
ASKED BY CAPPER
Senator Requests Efficiency
Bureau to Make Inde-
pendent Inquiry.

The Bureau of Efficiency was asked
today by Chairman Capper of the
Senate District committee to begin an
independent study of the street rail-
way merger plan, while DR.. Milo r.
Maltbie, New York expert, is analyZing
the valuations of the traction COM
panies.
In a letter to Herbert D. Brown.
chief of the bureau Senator Capper said
the committee would be glad to have
the benefit Of the research facilities of
the efficiency office, in addition to the
services of DR.. Malthie. who was ap-
pointed few days ago as consultant
to the committee.
While Senator Capper's letter leaves
Mr.. Browns hands free to determine
the scope of the inquiry to be made by
the bureau. the Senator listed ii sug-
gestions and expressed the belief the
Senate would be able to act better on
the consolidation agreement in De-
cember If provided with information
on these subjects.
Scope of Inquiry.
The particular phases Of the merger
problem which he indicated the bureau
might study. follow:
81. Fair value for rate-making pur-
poses of the properties to be merged.
20. Physical condition of the prop
critics. including equipment
"3. Condition of income and profits
accounts of the carriers whether ac-
curately and uniformly kept in accord
ance with standard practice
~ Present depreciation reserves and
provision for reserve after merger.
"5. Comparison of rates of fares In
other cities.
"6. Comparison of operating costs
ratio in Washington and elsewhere.
~. Comparison of fixed costs ratio
and general administration expense in
Washington and elsewhere.
"8. Comparison of power cost to
street railways now and after merger.
Practice Of railways in other cities as
to purchase or manufacture of power.
"9. Possible economies through merg-
ed operation.
10 Car miles operated per revenue
mine possible economies In rerouting,
etc.).
IL. Future of bus relationship to
railway operation, particularly question
of transfer charges"
Study Not Limited.
''In naming these subjects Senator
Capper's letter continued, lit Is not my
intention to limit the scope of your In
qutry and report. but I should like TO
have your comments. in due time, upon
any features of the proposed merger
agreement that you care to discuss att
er investigation.
ANY constructive suggestion you may
offer as to amendment of or substitute
for the proposed agreemen: will be care
fully considered. II, on the other hand.
your study of the situation convinceS
you that the merger proposal Is the
best possible under the circumstances.
shall be glad to have your reasons for
that opinion"
Senator Capper has requested o. II.
Brinkman, resident assistant clerk of
the committee to furnish the efficiency
bureau with any data the committee
has on the merger subject. The Sen-
ator also told Mr.. Brown he had no
doubt the Public Utilities Commission
would be glad TO Cooperate.
The Senator expects to be In WASH
ington later In the Summer. at which
time he will confer with Mr.. Brown.
Or. Maltbie Is expected to arrive within
few days to begin his study of the
proposed $50,000,000 valuation to be
placed on the merged company
Senator Capper's letter was just re-
ceived at the Efficiency Bureau today
and officials there have not had time to
map out plan OF procedure. Malcolm
Kerlin. an official Of the bureau. said
the Office would do whatever II could
TO comply with the Senate committees
request.