Evening star., 1928-04-29
MERGER DECISION
PROMISED SOON
Gilbert Plans to Ask ReValua-
tion by |. C. C. Before TAX
inu Final Action.

ing Final Action.
With factions in both District COM
naitteeS of Congress eXerting pressure
10 withhold approval Of street rail-
way merger until next session. aSSur-
ances were given yesterday of a final
showdown on the question raised by the
Federation OF Citizens Associations for
a revaluation Of the companies prop
critics prior TO passage of the Joint reSo-
mtion authorizing the coTSolk lion.
Upon being advised by William A.
Roberts that the Interstate Commerce
Commission should be able to complete
a phySical inventory within year,
Representative Gilbert Of Kentucky. one
Of those who are still disSatisfleo with
the $50. 900 900 rate base written INTO
the existing plan, announced ne woula
make such motion at the conclusion
Of the House hearings One OF the cnleI
grievances Of the federation is the TACT
tnst the rate base was agreed 10 with
out a valuation having been made OF
ali the properties to be included IN the
merger. The value placed by the Pub
lie Utilities Commission on the WASH
inston Railway & Electric Co. based
on the court valuation In the Capltai
traction Co.'S case. was admitteo oy
Commissioner Harrison Brand 10 De
more of a carefully completed estimate
than a straight valuation.
Agreement Expires June /. 1929.
Since the pending merger agreement
does not expire until June !. 1929, the
need for haste in obtaining approval
of Congress Is not apparent TO some
members of both committees VINO WISH
to have the plan carefully consioereo
during the Summer. During that time.
Mr.. Gilbert believes the valuation
bureau of the Interstate Commerce
Commission should be given an oppor-
tunity to make an inventory OF the
physical properties OF the companies
involved so that the true value Of the
mercer companies could be brought up
20 date.
Mr.. Roberts at first heSitated TO ex-
press an opinion when pressed to 90 so,
believing his Superiors in the valuation
bureau where he is employed should
pass Judgment on matter involving
the Commission. He admitted. however,
that a physical inventory could be COM
pleted within a year although he said
that matters involving litigation would
take anywhere from to 10 years.
Members of the Public Utilities Com
mission, teStifying before the committee
have agreed that il would take that
body at least two years or possibly
three to complete a valuation Of all the
properties.
Reid Examines Roberts.
Testimony favorable and unfavorsble
70 the merger plan was produced at the
hearing before the House comittee yes
terday when Roberts was put through
rather extensive examination by Rep
resentative Reid Of Illinois and other
committee members.
ROBERTS finaIly said that the Public
Utilities Commission would have 10
giant the Capital Traction Co. an in
crease IN fares If the matter we're
brought before 1t, on the basis of the
Court Of Appeals decision approving the
valuation Of S26 1000 600 fixed for that
company by the lower court. He quail
ned this by the statement that II ne
were sitting on the commission he would
appeal the case to the United States
Supreme Court as he doubted the valid
ity Of the lower courts decision. Coun-
sci for the two traction companies held
10 the contrary and declared the COM
mission would be bound 20 abide by the
ruling In the Capital Traction case.
The question Of power monopoly un-
der the proposed merged company
through the control Of the North Amer
lean Co, in the Washington Railway
and Electric System, which in turn
cams the Potomac Electric Power Co,
again was raised at the hearing Chair
man Zihlmzu. who is favorable to the
merger. brought out from Roberts that
power at Great Falls has no bearing on
the traction merger.
Might Save Money.
The theory was advanced by Zihlman
that the new company would be able
20 get power at cheaper rates, In event
Of DEVELOPMENT at Great Falls. which
would result 70 its advantage. According
70 Roberts, the Washington Railway d
Electric Co. owns the Great Falls Power
Co. which has rights in future desel-
ournents al the Fails. but he added nat
this company was not being transferred
un6er the merger The Washington
Railway g. Electric Co, however. would
retain il as q holding company.
There were several spirited Tits oe-
tween Roberts and REID over the queS'
ton Of accepting the existing merger
Plan or nothing al all MT. hopefH os-
ciared there would be very little gam
for the people OF the District in the
Man as il stands unless there are IN
c0fporated into Il the changes suggest
81 oy the Federation with respect 70
reroutlnz Of cars and valuation.
He declared he would not approve tne
Yaerrer now. because he believed the
un1olic would get more out of II ny wait-
Ing until further decline IN street car
patronage could force better arrange
naent.
Would this delay help the nder7"
II You know you are going 70 get
hit anyway" Roberts replied. II Is oet-
Ter 20 postpone H."
The committeeman brought up tle
question Of james o. Yaden, chairman
81 Kos Citizens Advisory Council, who
fs a director tn the Washington Rapid
transit Co. and asked Roberts II ne
Intended in bis previous testimony "
Intimate that Mr.. Ysden might nave
@6in!ster and personal interest" IN tne
merger
Yaden Letter introduced.
Ns. Roberts explained that for per-
sonsl reasons ne had i7egitatso 70 say
anything that would reflect On Yadefls &
personal character, and reminded the
committee that Mr. Gilbert had made
tkse inquiry into the counciiman's con-
nectiOna
A communication from Mr Yaoen
outlining his position was finally put
into the record after some argument
Tbe letter explained that Harley r. VIII
Aon, owner ~ the RAPID Transit Co,
mac invited Yscen 10 become director
IN the bus line On January ~, 1923. De-
csalsa be wanted & representative Of the
p1bits on the board.
YzAen explained he mad made his
acceptance ~ the position subject 70
tiae approval of the Federation of Citi-
DsEH Associations and the Citizens Ac-
yieoEy Council, both u which approved
tkst oGIeF after he bSo made II known
70 them. hF Roberts Vas present ~
tke meeting Of the federation, he added.
and ne presumed that Roberts Y0ted Ia