Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-02-02
Meeting Held Behind Closed
Doors Attended by Heads,
Brokers and Lawyers.
AGREEMENT EXPECTED
BEFORE MEETING ENDS
$50,0O0,0C0 capitalization Is
Rumored-Congressional 0. K.
Will Be Necessary.

Behind closed doors in the head
quarters of the Potomac Electric Power
Co. officials of the Washington Rail-
way e. Electric. the Capital Traction and
the Washington Rapid Transit Com
panies were putting finishing touches
today on merger agreement. which.
it is believed. will result in the long
sought consolidation of Washington s
transportation utilities.
The conference began shortly be-
fore IL o'clock and at an carly hour
this afternoon 1t was still in progress
and no indication was given as to
the probable time of adjournment.
Predictions were made by those in
close touch with the developments
that the merger agreement would be
subscribed to by the representatives
of the three companies before the
meeting ends.
Leaders Attend Session.
Besides Harley P Wilson. principal
owner Of the Washington Rapid Transi,
Co. those who attended the conference
were William F. Ham. president of the
Washington Railway g. Electric Co.:
John H. Hanna. president of the Capital
Traction Co.: Eugene E. Thompson O:
the Crane. Paris Co, the Washington
agents OF the North American Co. OF
New York. which owns large blocks Of
stock in each OF the traction companies.
An array of legal talent representing the
various companies also attended. Thtv
included william Gibbs McAdoo and
Brice Clagett, representing Mr.. Wilson:
G. Thomas Dunlap. general counsel fci
the Capital Traction Co.. and S. r.
Bowen. vice president and general coun-
sci OF the Washington Railway & Elec-
trio Co
The essential features of the merger
agreement already have been agreed
upon and the discussions now, accord
ing to the conferees. involve only topics
Of interest to the companies. None of
the major points agreed upon were re-
vealed, however, although 1t has leaked
out that a capitalization OF $50. 900 900
for the consolidated company Is recon-
mended by Mr.. Wilson and that his
plan Of merger made public last Octo-
Der had been approved. but the item
calling for q return of per cent on
the agreed valuation had been re-
moved.
Promises 10 Publish Agreement
Mr.. Wilson has announced that just
as soon as the merger agreement Is
signed II will be made public In COM
plete detail simultaneously a copy
viii be sent to the Public Utilities Com
mission for its consideration. and In.
dications are that public hearings viii
be held by this body Just as soon as
they can be arranged
Col. Harrison Brand. tr.. acting chair
man of the commission in the absence
of John W. Childress. who is In Haiti.
said that under the public utilities act
public hearings could be held either
10 days or 80 days after the receipt of
the document. He was not clear on this
point. but said he would be before the
merger agreement comes officially be-
fore the commission
Col. Brand pointed out that IL the
merger agreement is approved by the
commission IL viii have 10 go to Con-
gress for ratification A provision In
the act OF Congress OF March 4. 1928.
authorizing the car companies to con-
solidate by purchase or lease he said
stipulates that the merger shall be con-
summated finally without the approval
Of a joint resolution Of Congress
Legal Question Involved.
As information has come out of the
conference 10 the effect that the merg-
er agreement would not be submitted
To the stockholders OF the companies
Tor Endorsement until Congress rati-
fes IL. Col Brand said that q legal
question might arise as 10 whether the
commission would have authority 10
pass upon the merger agreement with
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