The Washington times., 1929-01-23
JAM NE.ARS
; IF BL A|A|E
HOLDS
OUT

The merger subcommittee Of
khe Senate District Committee
aoday reported out to the full
District committee the new
resolution to authorize a
merger Of the local traction
bmpanies on the terms recon-
nended by its expert DIR. Milo
r.. Maltbie.
An amendment to the resolution
proposed by senator Blaine Of Wis.
Gonsin to lay down a rule for valu-
ing the new company on the basis
OF prudent investment was slIg-
ested by the subcommittee but the
chairman, Senator Camper was
authorized to communicate with DIR.
Maitbie, now in California to get
his advice on the merit of Blaine's
1oposal.
Text Made Public
Following the meeting the sub
committee made public the text
ut the new resolution including tine
changes in the merger agreement,
publication Of the text revealed
Tor the first time the exact word
Ing OF these changes and also re
veafed that the companies are given
100 years In which to accept the
new merger terms,
Senator Blaine win present his
amendment to the full committee
Fl q meeting called by senator
Gepper today for Friday.
The COMMITTEES is expected at tina
lime to report out the resolution
10 the Senate
Other members Of the subcorn-
mites asked Senator Blaine today
IL he is going to oppose the reso-
luton If his amendment is not
adopted.
Senator Blaine replied that he
will submit a. minority report to
the Senate recommending his vaIua-
Ition amendment but has not made
up his mind whether or not he
Eill oppose the resolution
NOOnan in Protest
Blaine's attitude is considered By
members Of the committee to he
ery important because ii he OPP
bosses the resolution 1t win aeri.
6asly endanger its chances In the
Senate.
In view OF the legislative jam in
which the Senate has become IN.
tangled Senators do not believe the
merger resolution can be enacted
In the face Df serious opposition
Just before tIle meeting TODAY
members Of the subcommittee re.
eeived kilograms from John j.
asoonan, large minority stock.
holder In the washington Railway
and Electric Company. asking for
Further Qualification in the amend
Irnent to the resolution adopted by
tie subcommittee to prevent the
North American Company OF New
York. controlling owner Of the
local companies from charging ex-
cessive service fees.
Noonarl's objection to the word.
ing Of the amendment is that II
would not prevent the charging OF
excessive fees for material service
furnished BY the North American
Company to Its local subsidiaries
Members OF the subcommittee,
However, felt that Noonan's ob3ee-
hon Is taken care Of under the
present wording Of the amendment
and therefore made no changes "
IL
No Change n Fares
The subcommittee adopted an
Anednnerlts to fI1e section Of the
agreement providing for 4 new
yaluation upon the consInma
81 the merger, which provided that
ssnofhiYlg contained herein shall de-
nrive the new company Of any
Mrhts under the Constitution Of
fhe United states,t except that
Fsfhere shall be no change In fares
ia two years. The amendment
Was requested BY the company.
NThe text Of the new resolution
revealed that it provides for trans
fers between street cars and buses
n addition ot transfers between all
sareet cars. The extension Of trans
s4ers to the bus systems would be
s,nder the regulation OF the Pub
ie Utilities Commission,
The text Of the resolution also
eyais that the subcommittee has
sftened the terms OF tbs pro.
Acton Of the agreement pr0tects
~ the merged company from com
clifton. IN the old agreement
M protection was VERY definite
il much less SO in the new.
z