Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-09
STREET CAR HEADS
ARE SILENT ON NEW
MERGER PROPOSAL
Have Not Been Provided With
Copy of Agreement Sent
Congress.
ACTION WAS EXPECTED,
BUT NOT so SUDDENLY
Blaine Sees Justification of Earlier
Stand in Finance Aspects
of Plan.

Officials of Washington's two street
railway companies reserved comment
today on the latest move of the Public
Utilities Commission to bring about the
long sought merger by sending to Con-
gresS new unltication agreement of
It's own faShioning.
One of the reasons for the reluctance
on the part of the traction officials to
discuss the agreement is due to the fact
that they have not yet been furnished
with an official copy. The newspapers
have been their only medium of infor-
nation thus far.
The commission, however, plans to
have properly authenticated copies OF
the new plan in the offices of the trac-
ton officials within the next "a hours.
Mimeographing machines at the COM
mission were set to work this morning
to turn out enough copies to meet the
demand of the companies as well as
civic leaders and others who may be
interested in the details.
Commission Uses Strategy.
The action of the commission in franz
ing new merger plan, it is known, did
not surprise the traction officials, who
have had a feeling for some weeks
that such a move probably would be
made III view of the delay of the COM
panieS in renewing merger negotiations
on their own initiative.
The blow that stunned the companies,
1t was said, was strategy employed by
the commission TO get the agreement
before the public just in advance of the
filing of the appeals in the court for an
increased fare which the commission
fatty turned down last month.
That the commission made extraor-
binary haste to get the agreement TO
COnUFpCC and in tho N1ra c
said, is evidenced by the fact that
copies of it are not yet available.
Ralph B. Fleharty, peoples counsel
before the commission. also said he had
not been furnished with a copy of the
agreement, and therefore had nc COM
ment to make at this time.
The only reaction came from the
Capitol, where Senator Blaine, RepLb-
lican, of Wisconsin. said he understood
the commission, in its new merger
plan, left out the financial set-up of
stocks and bonds of the merged cGm-
pany, which was one of the points he
raised in opposition to the unification
agreement before the last Congress.
Justifies His Position.
Senator Blaine said he was not pre-
pared to either approve or disapprnve
the new agreement before a careful
garded the omission of a definite CAPT.
tai structure as tending to justify the
position he took in opposing the orig
lnal merger resolution. He felt at that
time that Congress should not approve
definite financial set-up for the
merged company.
Senator Blaine also advocated last
year new rule of valuation for the
Districts public utilities based on the
so-called prudent investment theory
The commissions new agreement, how
ever, provides for preservation without
prejudice of the present valuation rights
of the two companies pending a new
valuation to be made in accordance
with existing or future law.
Chairman Capper of the Senate Dis
trict committee, who expressed gratifi-
cation Saturday over the action of the
commission in bringing a new merger
plan before Congress expects to decide
soon whether consideration of the tariff
bill will make it possible for the COM
mittee TO hold a meeting this week TO
discuss the agreement.