Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-02-15
TRACTION MERGER
PLAN PRESENTED
TO0FF|C|AL BODY
Agreement Places Valuation
at s52,40o, 900 for New
Transit Company.
PUBLIC TO HAVE VOICE
ON DIRECTORS BOARD
Corporation to Acquire Control Of
All Street Car and Bus Lines
and Glen Echo.

The first definite plan formulated
and agreed TO By the transit companies
Of the District for bringing about q
financial and operating unifcation vas
tremendously presented 10 the Pubic
Utilities Commission today and released
immediately for public examination.
The widely he-alded merger scheme
vas embodied II 4500-word agree
ment, which already has been sub
scrloed 70 By ali three % Wasi,lngco.s
principal transportation systems-tne
Washington Railway and Electric. he
Capital Traction and the Washington
Rapid Transit Companies
Stripped Of its legal verbiage. the
agreement reveals all Of the financial
details. both as 70 method of securing
reasonable return on valuation and dis.
tr!bution Of benefits between the r,e-z-
ing oupanies-detai!s which zere
guarded scrupulously Throughout, me
pro'racted merger negotiations. which
were engineered and prosecuted oy
Harley T. wilson. principal owner of
the motor bus company.
Three Make Addresses.
The agreement was formally pre-
sented 70 the commission by George
Z. Hamilton chairman o: the bard
OF directors OF the Capital Traction Co
Charles J. Bell. chairman OF the boa-d
OF directors o! the Washington Rail-
xay & Electric Co. and Nir. wI.son
as the principal owner OF the WASH
ington Rapid Transit CO. Each maze
a brief presentation speech
Jonn W. ChllcreSs. chairman .. The
commission. announced al the con-
clusion o. the ceremonies .hs: e.
hoped The commission could acproTe
the merger plan submitted or one
very close 20 it
Public hearings On the agreement
ALL begin before the commission We'd
nesday. February 20 at 10 an, il xas
announced Ordinarily the utility ccr-
poratiolS are entitled 70 8 30 6zys
notice on hearings II which Valuations
are iryoivec. but this viii BE- wsiyeS
n view OF the request 0. the corpanses
for speedy action
New Company Provided Fer.
The agreement provides for he
ownership ard control by q rev ccr-
pany. 10 % Srown as the Capital Tran
SIT Co. o: al the transit properties. in
SIDE ard outside O. the District OF the
Capital Traction. Washington Railway
and Electric and the Washington Racsd
Transit Cos It's expressed object. IL was
announced. Is 30 bring about greater
efficiency ard economy OF rnarsSs-er.
Tor he oensflt and advantage Of the
pubic and 0: the stockholders Of the
companies Affected
Although the companies contend tina.
they are entitled 70 4 much higher
value by the principles laid down IL The
Capital Traction CO. valuation case
they consented SIS q comprountss IL the
agreement 70 the establishment: ct =
valuation 0: So. QSeo. 900 for rase-~aSing
purposes, Plus additions az ACCOM-: &C
capital expenditures due 60 additions.
ost.er,s,ectS a2o changes IL track az
ral'serlen;S, including Capital sxre2d2-
sti.e> made necessary cy the 2c.5cSs1ori
>: The properties This. :aS sS-sSu.sa.
stipulated shall Dc tire rate base upon
which The new company ''SaSI. o. en-
F1tlsS - ears, a rstli-U .. : Ter csE...
Ra>ed on sss,&es,sss
The capitalization 81 he Ceg ccSr-
;sa:iy w,l ~ based. scccgCG,S - tie
agreement, GENna re agreed gs.s osASe
% SSo,ooo 900 plls approximately So
40 o1o which woGlG DC pCcv.ceG ~
Ire pccSsgI. companies ~ exchange :c-
and worS.cS czp.sa.. or .GtSl csplsaA-
zSIsr4 ~ Bonds s1i $.<>c&S !: Scp-cx-
:.,ass.y So &eaoto The car.:a..sS:2Sc
woQlG os IS fellows,
Funded Sso. .......,,. s,S,!&cEo
CrsslndSG GsbI ..-.,.->>..,- >Se,oNo
StI<S l.oeoo shares II
yN,r cen: cumulative pre-
.crrsG $.<NcS, series A .- S.NS,<S
approximately s.T.4so shares
et c>;sl;.s<0 $st>rS ..>-..> et,e&s,G<S
rH:2l capitalization. ...-. So &lN,oSS
TIE REV company Will awu T., =. ne
pyy,2sgty y. The CaSitSl TyAt:2lls O.,
l3clSlSt,.S bases, ~, ~ gAS EANSSEtS -
the WS>.lu(St<;s Railway Il E2xNSgs&
O.. 10Th y. he rlSs=lc. Sss0 ~ May
Land relating ~ TIE s1SS%F& sA1.~@S
and nsotcr sS.s es.>Hs$> including re
ana S<SSEtssE Railway o.
~ MNnySps,ESgy County And ne Glen
srhA Amusement PARK SaS 49, nssSs
scaa IS MI ces3t - IRE SANK ~ me
WA&A&agtea Es02S Transit c.. Sas<A
NJ WI.S>>u n>w OWNS SaS s>gcSNNS<S -
sell ~ tNe ca:sS '.IGASSSs EN,sas>assS ~:
sSsS.ooe
Provided Tor Liquidation.
The aSygesnsg: prs,ys<sS ira: TIE Cas>-
stal Traction o., W;!t iESQs<ssgs 3StS SS>-
SA>sxe AM .A3t SaSa <TESSssS>tessg ~Ess
have the cp<ANi - rv<SsVcsS ~ SSS-s
>nare IT pyStevsS& >s<Sk lsse >sAEs ~
preferred St>x& III she new S>StsSASN ~
one half share ~ tAs psstsrtsd SSSNs -
the new Cvsas>s,tN. gSlg> Gle ~ NfSfS
II r<,u,l,,SH >.ccA ~ ts~ Osw <>A1r&3iN
rN.S ,N>HasNatsy t>>w aaS >Sl9Ss2Asssss&
~ ltNN shares ~ >sssS& ~ sssS tSNSAI YAK
val,&r IL $ts.<NeSN
The WA<AllSttNs, SaslWAN & sZSSfSS
CO. MetGS W.. >NatIslGe ~ S>S>ss a.
tl,,N.sA u2g A. an esNrat&.ss SN'Ea&aiNs
Will tmltsal,x receive AL NJ lie ssssNgSNN.~
match Slt4.e ~Sass> II S<SaaN>a >sSSN
Ia n. h>>,sySt an& Wlsa s>>s%iEsSe >S'Sa
Common Ssl>SS gAr psesecEv<s AM NM
n,<a, >s>NS WWh ><gra scSesSg tSk1sst
r,AstN,at ~ St><S1>,1<sSSS ~ desire 10
make tae SNC>Aa0Se ~ Ne NA>lN ~
asNsSS inSsNSSSN&
The Na<aStSgsNa RAILWAY = SsS~StG
CO. wascA at sas aS~Nsas ieaNs eNs>s
All as the outstanding >EIsA - slss ~"
sIasaae Ese<sIsS HNWSs CO. undertakes ~
ths aSyx,Asuepe, Stsn,sct ~ tas aa2savAs
II the NtlsSStSNS <Nassa,sssi>>ss 81 enter
mite a ,>,weY AsgvrHssAs wHa sns rev
s>ssnsNasaS taAs'a asay nleAsese a eeaNt
IN She ;N>MSg ,xsaAsSAssS NJ The g>ewvs
aAt<A the new >NsasgsanS NIL
ave ceaasue3 ~ eStAx apsssssseaAaas II
sH,~ TRANSIT sNcseFeteS ~ o. acSsat~~Sa Nv
he ,s<w c<.3npassyA elA terms aAscA WsM
create = <tgsSAthaaA >scA that shs new
s~SS& ~ sN>wxF ~ the nsN gx.sNaAuN
sasteg Srv<fssisNS Any rental gsAyAese o.
the ne~ SSs'atNsaN tn ,eS ees~s psSye-