Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-04-02
ACTION ON MERGER
VILE Be PRESSED
|. At EXTRA SESSION
Capital Traction Co. Letter
to Stockholders Reveals
Companies Plans.
MITIGATION AGREEMENT
EXPIRES IN 2 MONTHS
Move for increase in Fares Not
Expected Until After Con-
gress Convenes.

With only two months remaining be-
fore expiration Of the transit unification
agreement, the TRANSFORMATION COM
panies. 1t was learned today, are max
| ing plans to press for approval of the
| joint merger resolution at the coming
| special session of Congress.
| The first indication that the transit
companies will seek to have merger
| legislation considered at the extraordi-
nary session was given by the Capital
| Traction Co. in letter to its stock
holders under date of April /. Checks
for the bath quarterly dividend accom-
| panied the communication.
John H. Hanna, president of the COM
pany, pointed out in the letter that the
unification agreement is effective until
June ], and that an effort would be
| made TO have the joint resolution APP
proving the terms of the merger, which
! was favorably reported by both the
Senate and House District committees
in the last Congress, passed at the spe-
cial session.
Plans Revealed i'm Letter.
"Since the date of the annual report
said the letter, Congress has adjourned
proving terms of a merger between your
company, the Washington Railway &
; Electric Co. and the Washington Rapid
/ Transit Co. Inasmuch as the agree
ment between the three companies, APP
| proved at special meeting of the
| stockholders held March Is, 1928, is eff
| fective until June /, 1929, an effort will
be made to have the joint resolution.
which was favorably reported by the
committee on the District of Columbia
/ in both the Senate and the House,
| passed at the special session OF Con-
! 9reSS which conveneS on April 49,"
Mr.. Hanna also explained in the let
| ter that the board o. dirc:..:-s at its
last meeting authorized a renewal of
the company's application for increased
fare in the discretion of the executive
board. but he gave no intimation when
it likely would be filed with the Public
Utilities Commission.
When asked today when the appli-
cation would be filed, Mr.. Hanna an
swered: ut is our expectation to file
it before long"
There is little likelihood, however
that the petition will be sent to the
Commission until after Congress con-
yenes, and the probable fate of the
merger legislation Is more definitely
| AAAOWA Lie COLUpdIly, II WdS
said, does not desire to jeopardize IA
vorable action on the merger resolution
by another move for increased fares.
4 Original Plea Dismissed.
The company's original application
for higher fares was dismissed by the
Utilities Commission last october with
out prejudice to its right to renew il
after March 5. 1t was the cQmmis-
sion's belief then that if merger legis-
lation was enacted at the closing ses-
sion of the last Congress, it would moi
be necessary to consider the increased
fare petition.
The petition was based on the ground
that the company was earning less
than a fair return on its Court Of APP
peals valuation of $26,000,000. II
asked for a fiat Scent fare, or else
a 10-cent cash fare, with four tokens
for 80 cents. During the hearings OF
the application before the commission
company representatives said 1O-cen
fare. with no token rate, was preferable
The next meeting of the directors o
the Capital Traction Co. will be hell
April II, but plans for renewal OF tn
increased fare petition are not expectet
to be discussed. The executive board
it was explained. was authorized to nj
the application at any time it saw ut
which makes further consideration b.
the directors unnecessary.