Evening star., 1928-03-10
CAR FIRMS INSIST
ON MERGER PLANS
Utilities Commission Must
Accept or Reject Orig
inaI Proposals.

With the merger hearing in recess
today until Monday morning. and rap
idly nearing an end. the main issue at
stake In the fight over the plan for
unification OF Washington's transporta-
ton systems stood out sharply defined,
Either the Public Utilities Commits
sion must accept the merger agreement
as q whole. with its $50 900, 900 Valtia-
ton and guarantee OF per cent re-
turn. or II must reject 1t. That IL the
ultimatum given by the heads OF the
two street railway companies.
rhe only possible modification which
they would agree to, so the claim was
made. Is 10 submit To revaluation
at the end OF a i0-year period, provided
their original demands are accepted
by the commission.
Traction Position Verified.
The position of the Capital Traction
Co. and the Washington Railway IL Elec-
trio Co. steadfaStiy maintained through
out the hearing, was clarified and given
additional emphasis yesterday after
noon by William +. Ham. president OF
the latter company. While unable to
get any other concession than possible
revaluation. the public representatives AT
least drove the traction magnateS To the
point where they had 10 lay all their
cards upon the table.
but William Mex. Clayton OF the
Federation of Citizens Association did
not waste his efforts In fruitlc8s results
altogether, lie got into the record from
the most authoritative sources denial
and All affirmation that The North
: American Go. OF New York. the fiy III
The merger ointment, controls the
Washington Railway Il Electric Co.
The denial Was made by Harley y,
Wilson, a director In the North Ameri-
can Co. and the admission OF con-
troll was wrung from Mr. Ham Clayton
has c0ntended all along that this al
legged st0ck control In the local traction
company Is held Illegally and that Il IN
the intention 0f the New York company
to use It's stock In voting nn the merger
agreement which he contends would be
another Illegal act
Through It's president the North
American Co had stated that It aWna
or holds ~ per cent Of the stock IN
the Washington Railroad & Electric
Co. aud earlier In the hearing yesier-
day Mf Wilson. very lndiguaH'ly, had
denied that the company III which he iS
director owns n control"
When Mr.. Ham took the stand
Clayton put the same question To him,
He asked MI, Ham II he considered
that n single ~ per cent holding OF
the stock of corporation would con-
.titute control of the company,
Il should call that practical con-
troll" MIR, Ham admitted
"'fhen Is not The North American
Co, IN control Ut y0ui company" Clay"
ton pressed
Ham teriiieA Holdings.
1T is IN The record that the North
American Go. has ~ per cent ot our
stock. ! would call that practical con-
troll" liam teatified
The part that the Potomac Electric
Power Go would play IN reducing rail-
way fares. were II Included IN the
merger agreement consumed cunaid
efable period
III the power company WAS In the
merger ana its earnings were going
into The common treasury, would there
he any danger vi Increased fatesp"
Clayton demanded,
Ham said H. would make 40 differ
anca, explaining that the power tom
pany IL limited Ia "a per cent Ia It's
earnings and. under the law. has had
tn feduCe It's earnings from tine ia
time
Col I.adue. u member VI the com
mission questioned Ham about The
eOnlIaetnrai agreement hetween The
WreGo ana power companies aud what
the nav merged company would enjoy
LAS far as ! can see" baid cni
l.adue. "ali ihesa henettA are enlayed
by tiia traction company aud th1 now d.