Evening star., 1928-02-29
CLAYTON ATTACK
MARKS OPENING OF
MERGER HEARINGS

Continued from First Page)
nhasized at the beginning OF his re-
marks that he did not appear as
witness.
"As view 1t there are three fUnda-
mental principles involved In the PFC
posed consolidation" he declared
They are these: /. Is merger OF
the TRANSFORMATION facilities of the Dis
trict of Columbia and the metropoiltan
area a desirable and beneficial thing?
. Is a merger desirable and beneficial
TO the public and the parties to this
petition? 3. Is the petition as present
ed fair and equitable TO all parties
Does it give the public every proper
consideration? Is 1t fair to the owners
of the properties"
Sees Value to Public.
A merger OF the transportation "a
cilities Mr.. Wilson added, will prove
"nre-eminently to the value OF the pup
1ic" THE question of the value OF
these utilities is pending before tnt
commission" he declared. 1T seems u
me individually that the consideratloi
Of the value OF all OF these properties
at one time Is an entirely and practica
thing tn do l would like at this TIME
IN clear I'D the one ambiguity in tnt
nlblic mind. that Is. why the companle'
we're induced to make the public pres
ent of Sl2 900 900. No altruism entered
into that situation. The purpose OF j
is to bring about better puoilc Fe!a'
ton. ooo <. .o
making purposes is no conlproll.se
This $50 600 900 Is believed by the com
nanies and myself a sound principle
Of business
President Hanna OF the Capital Irac'
,ion Co. took the stand after Mr.. VII
sons talk and stated the posi'loh oI
his company with respect to the merger
agreement and the reason whicn ac'
tuated it to approve consolidation.
Merger Long Sought.
The demand for a merger. ne SAID
has been expressed by various interests
for the last 20 years and In order 70
meet that demand several previous at
,empts were made TO bring about con-
solidation. They failed because the
parties thereto could not come to terms
The demand for n merger has peer
more insistent in the last few years ano
as result the present plan was drawn
up largely through the instrumentality
OF Mr.. Wilson"
The merger plan. MFR. Hanna eX-
planned. does not contemplate any
change in the powers or authority ol
the Utilities Commission and emoodies
but few changes In the present plan
of operation Of the car companies. The
fundamental difference. he said. Is that
1t provided for single unified system
OF transportation. The reason the
agreement fails 10 provide for the iSsu-
ance of free transfers between the cars
and the buses Is. he pointed out. be-
cause the companies did not want tc
tie the hands OF the commission III the
matter OF revenues.
Fare Increase DELAYED.
The principal thing In the public
mind, he added. Is the rate Of fare
The plan he said has nothing TO dC
with fares.
The fare situation with respect Il
the Capital Traction Co, today Is yer,
clear one" added Mr. Hanna. "Tht
Capital Traction Co has not had fail
rate of return In the last three or tou'
years and particularly within the pas
year The only reason the compan,
has not applied for all increase IN fare
before this time Is because OF thu
merger negotiations. For that reason
and that reason only the company ha:
not asked for higher fare. Moreover
the company has not abandoned lis III
tention Of asking for Increased fares,
III the merger is not accompliSnef
the company will and must apply fo'
higher fare. The only reason ths
- L. ttslN
Is due to the present merger negoua
tions."
Labor Policy To stand.
The rate OF fare. however, Is not the
only question to be considered III con-
nection with the merger, MIR Hanna
emphasized II cannot sec any reason
whv that question should be part oi
This Investigation" he declared Tic
then served notice that the value
claimed hy his company III the merger
!, agreement is based on an inventory
ana not on an estimate ana that we
matter OF the 7 per cent return wo"'"
be supported later by evidence anu eN-
hlbitS lie also pointed oot tha' ~
uoltcies aud questions of service W""'o
be determined hy the coWmiSsin'' w
we'll ns the policies te'a'tns w I"o''
lie huuFu, ihWVNfts '''"N W. -.
be- na change In MS ton'i'"N '""''
policy III the future. ,,,.
William r. tam. president OF th'
Washington Railway and Elr't'lt 70
followed Mr llanna ON the witness
stand and explained the poSitieh !" h'A
comnany with respect III thr Wrtse'
ne,erment. lie said that. III his opin'Hh
the matters which the public ~ pf'-
martIv Interested In can M summarized
ns method oI control. NalnattHn eco"
namirnl power supply, transfer atfanse
meuts, reiiet from the burdens ot speVia'
policrmen aud paVlns. and traAnhah'S
protection against competition, tte
then discussed the points IN follows,
Method OF control 1t II WoVidtd
that the control ot the COMPANY shalt
real III u hoard of directors consisting
of Ia persuns. az the 10 Misinal uitet~
tors. SIX shall be nommatcd hv lhe
Washington Railway aud Electric Go.
six by the Capital Iraction Co and
three are tu I've representatives W the
puhlle, nominated hy The tuhlio utin"
lies tummiasinu ot the District ot tn'
mmhia not identified With either cnine
pany,
1T h telt by such public fapre-
aentation ON the board at dheCtMs the
public. on one hand. viii have u Nnite
in the management of the company
| ttselt on the other hand, the Con,lanS
win heneft from having contact with
the puh,,e dUectlN through tN tepfe
sentatives on the haatd of direetars
We think this provision should all'eal