Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-25


proeress of a hearing held before the
commission on the subject OF DILL 10
provide for a merger of local street car
companies, request was made that the
companies outline to the commission
legislation that, in their Judgment. would
form q basis for merger. THIS request
was given careful consideration at joint
conferences of committees OF the TWO
comnsnies and on November 20, 1925,
the two companies jointly presented to
the commission their ideas OF the more
essential features that should be en-
bodied in such legislation. The sub
mission above referred to is among the
f1les of the commission and need not
be more particularly referred to at this
time.
Invited to Merge in 1927.
ION November 8, 1927, the Public
Utilities Commission addressed letter
to us in which We were urged to JOIN
with the Capital Traction Co. and with
Mr., Harley P. Wilson in the preparation
of a plan of merger to be submitted TO
the commission for its approval.
las you can well appreciate, 1t was
Q difficult and delicate task for the vari-
Gus companies involved to agree upon
unification terms in view of the differ
ences relating to valuation, earning
power, future prospects, capital struc-
ture, etc, Nevertheless, realizing that
the common interests of the public and
of the companies themselves would be
promoted by a unification. and in re-
Spouse to the request of the Public
Utilities Commission, conferences be-
tween the companies were continued
until finally the interested companies
came to an agreement, dated February
rrroC rncgf-
BILE because we and our stockholders
were willing to accept important imam
cial sacrifices.
The Public Utilities Commission,
after protracted hearings. required GER
tain notifications in the unification
agreement, which we and our stock
holders accepted, although these in
volved further sacrifices on our part.
The final modified agreement was dated
April z, 1928. AS you are aware, how
ever, under existing legislation, action
by the companies and by your commits
sion is not in itself sufficient to permit
q merger to occur. Congress has pro-
vided that no merger shall be made
unless the terms are approved by 1t.
Accordingly, the unification agreement
entered into provided that the parties
should be bound thereby II Congress
should approve thereof June /. 1929.
This afforded Congress two sessions
within which to act. Congress failed
to act one way or another upon the
unifcation agreement and said agree
ment has now lapsed.
Legal Difficulties.
I'm view of the existing legal situation,
which has resulted in multiplying the
efforts and large amount Of time and
money expended during the past few
lnt n
of now reviving these efforts unless
there is some tribunal or body which is
in a position to act promptly and with
final authority on any unification agree
ment that may be arrived at.
Congress having provided that no
merger shall be made unless the terms
are approved by it, we are not entirely
clear as to precisely what you con-
template by your letter when you refer
to the submission of a merger agree
ment to your commission for action by
it at an early date. since no action by
your commission can make any merger
effective.
Our willingness and ability to arrive
ut unification terms has already been
demonstrated. What remains to be
demonstrated is that there exists the
practical possibility of getting the requi-
site legal sanction to any unification
dBTcCUtcut. VIC Cnu oSaLSCJ ASSUME
that your commission is in a position
to satisfy us upon this point. otherwise
we should be only too happy to Demon
strate that our attitude toward unfit
cation, on fair terms. of the transporta-
ton facilities within the District OF
Columbia remains unchanged"
The response of the Capital Traction
Company to the commissions letter.
brought q reply sharply disagreeing
with Its conclusions, from Chairman
Patrick Of the commission.