Evening star., 1928-03-13
MERGER FIGHT LAID
TO foreign RULE
Clayton Holds Opposition Is
Based on Control OF
Outside Owners.

William NICK. Clayton told the Public
Utilities Commission today that oppos.-
ton to the traction merger agreement
was based chiefly on the injection OK
"foreion control caused by the "sinis-
TOR shadow" Of the North American Co.
which. he declared, Is the main grew
ance that Is worrying the pubic.
II the heads Of the two traction COM
NAMES had come before the comm .Ssioii
with a merger plan OF their own. Gay
ton gave assurances there WoI4o nav
been no public outcry. Inc people Va
Washington are anxious tor nefs.
he declared but are opposed 70 tnls
merger agreement linked as II Is WITH
the control Of the North American 20.
and Harley P. Wilson, a director. wnose
ownership Of the bus line he cElarac'er-
lied as having "a string attached 20 ~
The merger proceedings entered 'neir
final stage today when William a. ROO
erts Clayton and Ralph 3. Fleharty.
neople's counsel made the concluding
arguments on behalf Of the public IN
onoositiCn to the plan before the CON-
mission. Counsel for the traction CON-
panies will bring the hearing to close
late today.
Urges Separate Valuation.
CLAYTON took the position that neither
valuation nor a rate return should be
written into the merger agreement ana
urged the commission TO make It's own
valuation as of today.
The public is perfectly satisfied to
accept a proper valuation, ne Sai1. Out
we do not accept this"
When this merger was brought here.
declared CLAYTON. ''the company said
Here is a $50 100000 collar which We
ask the commission TO put around tn"
neck of the public. paddock 1t and throw
the key away
Since this ark OF the covenant wa
presented" Clayton added, ''prIfaHc
hands have been laid upon 1t. resulting
in some confessions by the companies,
but no confession on the part OF the
North American Co. or Harley P. VII
SON.
He denied the heads Of the two trac-
ton companies have virtually closed the
door on the merger. provided the agree
ment is not accepted. and declared that
Congress yet would have the final vo-d
to say about II.
Mr.. Roberts, who opened the arga-
ments for the public. attacked the vall-
alton and the per cent return as null!-
flying the powers of the Public Utilities
Commission by breeching the Law with
| provisions for legislating the valuation
! and return In perpetuity.
Asks Commission to Act.
I'VE do not wish 10 destroy the hope
! of a merger" Roberts said. 'AS sane
men we don't want to see the CON-
panies put on the rocks
He declared 1t was the public's posi-
| ton that the commission itself, after
due consideration and investigation.
propose some effective and reasonable
way to effect a merger.
| Roberts declared that the commission
F., even in the event the merger agree
ment fails. could enforce the Law by
| requiring the companies TO effect re-
/ routing OF cars and other measures of
| economy which he said the companies
claim would result from a merger. In
/ this way. Roberts said the public would
| retain some of the benefits and i'm
/: proved service.
/ Why the companies had no; effected
| these economies long ago. Roberts de-
/ clared. Is matter which they will have
8; to explain to their stockholders.
| With the conclusion of the mercer
| hearing todav the stockholders of the
! Washington Railway & Electric Co. will
/ meet tomorrow to vote on the unifica-
ton plan. The stockholders of the
/ Capital Traction Co. will do likewise
Thursday.