Evening star., 1928-03-14
v. R. & {. VOTES
FOR MERGER PLAN
Stockholders Approve Com
bine at Special
/ Meeting.

Ratification of the transit merger
agreement was voted today by stock
holders Of the Washington Railway &
electric Co. one of the contracting
parties. at speciaii" called meeting.
With two-thirdS vote necessary for
ratification. the total number of votes
cast for the merger was l0S.921ts of
the outstanding 10000 votes. each vote
representing one share of stock. No
votes were cast against the merger.
Tcday'S action was wholly in line
with previous predictions. Tomorrow
morning stockholders of the Capital
Traction Co. meet to vote on the merger
agreement Two-thiris of that COM
pany's outstanding 80. 900 votes will be
necessary for ratification.
Vote Is Over Margin.
The vote of the Washington Railway
& Electric stockholders was consider
ably over the necessary margin of
100000. and represents final action so
far as the company is concerned. Sew
eral Of The minority stockholders were
present and voted. Directors of the
company held the proxies for the
others.
Harley P. Wilson of the North Amer
lean Co. which holds or owns ~ per
and who is director, did not attend
the meeting. as he is not a stock
holder in the company. The North
Americans block. Of stock. however.
was voted in for the merger.
Presentation OF the merger agree
r,ent was made by William F. Ham.
president Of the Wreco Co.
The Public Utilities Commission.
which IS yet to pass on the merger
contract. may consider it tomorrow at
its regular meeting. In some quarters
today it was predicted that the COM
mission either would turn down the
sereement as a whole or else change
il ia many respects 70 meet the de-
ra,!6s OF public interests
Fare Increase Looms.
Regardless CT the outcome of the pro-
posed merger, the car-riding public OF
Washington today faced the probability
OF an increase in fares.
AS their parting shot at the extended
hearings before the Public Utilities Com
mission. the traction heads made it
clear, in their opinion. that a higher
fare is unavoidable. This threat was
softened by the admission that the al
most certain increase, perhaps, would
be less n event the commission ac-
cepts the companies terms. But In
either event, they declared, the public
must dig into its pockets in order TO in
sure the earning Of a fair and reason
able return"
In the opinion Of Mr. Ham. the prob
ability Of the merger. in view of the
attitude taken by the Utilities Commis-
sion and the Federation of Citizens AS
Sociation, is not a sure thing
Public representatives have made II
clear that the public of Washington is
keen for merger but is opposed to the
existing agreement. Their position,
broadly, is that the company prop
critics should be subjected TO revalu-
alton. On the thesory that the proposed
s50,000.000 rate base and Z per cent
return. to be fixed by legislation, are
excessive
Suggestions for, a revaiuation were
met by the traction heads with the
reply that the commission Is bound to
be ruled by the decision of the Court
OF Appeals in the Capital Traction case.
and further that a revaluation un-
ooubtedly would set the rate base
higher than it Is now proposed and
result assuredly In higher fares.
Opposes Bowen.
George z. Hamilton. chairman OF the
Capital Traction board. made the frank
admission that a merger might be fol-
lowed by increased fares, but not 50
large an increase as there viii be IL no
merger takes place. He also dissented
from the view expressed by s. r. Bowen,
general counsel for the Washington
Railway & Electric Co. that the COM
mission cannot make new valuation
II it wants 70. Mr.. Hamilton. added,
however. that he thought new valua-
ton would establish higher rate base.
The right of the commission 10 enter
upon new valuation proceedings appear
ed 70 be the crux Of the closing argu-
y7ents of counsel.
Traction counsel argued that a re-
valuation !s possible only under changed
conditions and Col. Ladue. a member
of the commission, ciung tenacious!y to
his vteT that the merger Of the COM
paf2ie& vDuld introduce changed condi-
tons Of its own accord.