Evening star., 1928-12-02
TRACTION MERGER
PLANS DISCUSSED
Capper to Call Informal
Meeting of Colleagues
for Tomorrow.

With two comprehensive reports on
the street railway merger about to be
filed with the Senate District commit
tee, Chairman Capper indicated yester-
day that the special subcommittee in
charge of this question probably would
meet within few days to map out its
course of procedure on what promises
to be one of the principal local prob
lens at this session of Congress.
When the subcommittee meets it will
have before it not only the detailed sur
vey of the local transit situation made
by the Buerau of Efficiency, but also the
findings of Dr. Milo R. Maltbie. public
utilities expert, engaged by the Senate
committee as consultant.
Plans Informal Conference.
Senator Capper plans to confer in
formally tomorrow with the other four
Senators on the subcommittee to fix a
date for the meeting, which may be
held Tuesday. Senator Capper said
that after the first meeting the sub
committee members probably will want
time to study the lengthy reports Of
their experts before proceeding further.
The other members of the Subcom-
mittee are Senators Vandenberg of
Michigan, Blaine of Wisconsin, King of
Utah and Glass of Virginia. With the
arrival in Washington yesterday OF
Senator Vandenberg the entire subcom-
mittee is now available for a meeting.
Senator Vandenberg said upon his
return that he has been particularly
desirous of finding out how the pro-
posed valuation of S5O,000,000 for the
merged company compares with the
valuation of traction lines in cities
comparable to Washington. Senator
Vandenberg said information he had
received indicated the proposed valua-
ton under discussion was considerably
higher than those prevailing in cities
comparable to Washington.
Interested in Valuation.
He said he also has been interested
in ascertaining whether. with S5O,-
| 100000 valuation, the new company
would be able to make a sufficient saw
ing from unified operation to obtain a
fair return on that valuation without
eventually increasing fares.
Tho cen1tcr recalled that another
ar en- which he suggested in the
-lation of the merger was
NEITHER it would be possible under the
pending legislation for holding COM
pany to collect service charge.
Discussing the merger problem yes
terday, Chairman Capper OF the COM
mittee said every effort will be made
ito work out just solution during the
present session" Continuing his refer
ence to the street railway consolida-
ton question, Senator Capper stated: =,
mo one questions the need for and
advisability of a merger. The PROB
lem confronting our committee, ana
| Congress, is to bring about a merger
that will be fair alike to the people VINO
pay the bill for transportation ana
those who have invested their money IN
the street railway and bus lines.
"There probably will be no need for
extended public hearings on the merger
resolution. We have available the very
complete hearings held by the House
District committee. During the closing
days of the last session the Senate
District committee also held q hearing.
J Nevertheless. have no doubt that both
! The proponents and opponents OF the
merger proposition in its present form
will be given an opportunity to con-
csely state the reasons for their posi-
ton. The committee will then de-.
termine from its study of the mass OF
| data available, and the arguments sub
| mitted, what report should be made to
the Senate, or what other measures
| should be taken to bring about an
| equitable and practical solution of
Washington's mass-transportation prob
| lem. Every effort will be made TO work
! out a just solution during the present
I session. On the other hand. every ef-
! fort will be made to prevent the lay
! ing of an undue burden on the thCu-
| sands of District residents and others
/ who are compelled to use the street
! car and hl1S lines y