Evening star., 1928-02-04
DIRECTORS TO GET
MERGER PLAN SOON
Early Action on Traction Uni
fication by Companies
Heads Expected.

The voluntary consolidation Of the
transportation systems Of the District
moved another step toward realization
today as the boards Of directors of tbs
Washington Railway & Electric and the
Capital Traction Cos. made prepara-
lions TO meet next week to consider the
merger agreement completed yesterda!
afternoon by subcommittee represent
ing these two utilities and the Washing
ton Rapid Transit Co.
The Washington Railway & Electric
Co. directors. it was announced BY
Charles J. Bell. chairman Of the board.
plan to consider the agreement a. tne!r
regular meeting Wednesday afternoon.
Tbs directors of the Capital Traction
Co. win hold their regular meeting the
following day. and In all probability
it was said. the document would BE-
discussed at that time. The agree
ment. it Is understood. already has
been subscribed to by Harley P. VII
son. principal owner Of the motor bus
company. and no further action on the
part Of this utility Is necessary.
NO Detay AntlCip2teo.
No delay in the approval Of the
agreement by either the Capital Trac-
ton or the Washington Railway &
Electric directors Is anticipated by those
in close touch with the merger neso-
tiat!ons and Indications are that the
document bearing their approval viii
be formally submitted to the Public
Utilities Commission next Saturday.
In the meantime the companies pro
pose TO scrupulously guard the details
Of the agreement, which il has been de-
cided should be made public by the
Utilities Commission.
Public hearings before the commits
sion will follow the receipt Of the 6ocu-
ment, and IL this oody approves The
plan OF merger 1t Will be forwarded -
Congress for ratification.
A decision has not been reached.
however. as to whether the asreSnaer;
should be presented to the stockholders
OF the companies for Endorsement be-
fore 1t goes TO Congress or following
action,
May Make Some Changes
On the other hand il has been de-
cided definitely not TO submit the agree
ment 10 the stockholders until the
Utilities Commission has passed on II,
One OF the merger couferees pointed
out that it would constitute lost motion
10 have the stockholders consider plan
Of consolidation that had not received
the approval OF the Utilities Commits
sion previously, II Is possible, he SSsS
that the commission may make Sonse
~ hsS os>S ghss~~A-
fore would have 10 oe re<nn$idere6 D.
The stockholders ShoQsG IL be acted o,G
by them prior 20 the cNulmlSSloQ> ;
action,
The subcommittee ot the tGrvS
transit companies, which has been AZ
work on the merger plan aln,AS. daily
for several weeks, put the finishing
touches on the agreement AZ - tlsTsT-
hour conference yesterday afternoon. az
which the internal aueStIoilS tny<,lseG
i'll merger and ia,erccmpa,ly pgOe,egGS
such as equitable distribution os S6-
vantageS between the merging c<Tpoga~
tons. were irg,ed cus, Some a,inag
points of difference yet gctaala. bar
these are NOT regarded As important
and the eoOferee> are certain that tASN
will o> disposed NJ without teS nttT$-
>lty NJ further SxNOtSgenreS ee{cge gsse
The two traction companies aSNt Meek
Wilson Plan form> RA>i>
Despite the Setgei;sent>S v<s&>rgt&l&
the details ~ the aSyS>SHseae, SNslIlriUa~
,lon MAS GNen E<N}av by osse ~ sSy> t>'II-
ieVecS 10 U'sNNl$ tAat the mSgseT p.aN
~ Mr., Wll>pn had exn llSS<i ~ a
large e>teng AZ ~ basis try nesVgsa,4l,ll
This plan provides u capitalization ~
$40 100. 900 for the y<>si>o,sSsasSS S<Gls-
pany, Hut the clause in Mir Wti$<NAS
plan which would have guaranteed the
c<n,lsanv 4 I pSr cent re-
turn on this figure has eeen removed
And rs the agreement non stands With
Out the guarantee clause the nsegSsr
company weuld rely cngtrsiN gu Shs
Utilities Commission to IN rate et
return thas Wou.d h equitable and
fair ON the $40, 90, 600 valuation
As II has been she policy ~ tNt tAa,~
mission III The past 10 all>'N utlhgs >x,l~
l>oratlaAs a I pcs eNng fStavla, the "a,
feel II VAS SAID, THAI Ii Wsli
continue 10 do NJ, although the aAkxSe-
meha viii not call tag g,tAtAa.eS of
this rate,
THE plan ~ merger as now r<sesgl,
tatsd, said one Vt the eengSgeSsS II
fair "a The public and the Stockholders
oI the car lines The dAv NJ tae ',gc-
lie ee. damned policy with raspSpt Il,
the operation ct utlhtS e<Agls>NGAti(ssS has
passed and feel quite rertAtn gAat
the merger plan which We have drawn
up viii receive the approval OF tas
commissions and SSSssgsSs>-