Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-08
TRACTION MERGER
URGED AT CAPITOL
BY UTILITY BOARD
Continued From First Page)

This form of agreement was duly ap-
proved by the Public Utilities Commits
sion on December z, 1929.
ut will be noted that this agreement
provides that If approved by Congress,
it shall go into effect when notices are
filed with the Public Utilities Commits
| sion that it has been agreed to by a
Fvote Of more than a majority of the
stock of the street railway companies.
Attention also Is called to the fact
that this agreement does not set forth
| in detail the capital structure, the stock
and bonds, etc, OF the new company
nor the division of the stock of the new
company between the two existing ccm-
panies. The agreement does, however
provide that these details shall be SUBJ
ject TO the approval of the commission
1t also goes further and distinctly
states that the capital structure shall
be in strict accord with existing laws
and that the total liability of the new
the total liabilities of the two street
railway companies.
Agreement is Held Fair.
"It has been repeatedly stated by the
street railways companies that they are
deferred from formulating and submit
ting to their stockholders a new merger
agreement because 1t may be merely a
waste Of time and effort unless they
know in advance the terms and condi-
tons of such merger which will be
approved by Congress.
Upon the form of agreement submit
ted herewith at once diSposes of this
contention:
1T is the decided opinion of the
commission that this agreement is fair
to the public, fair to the companies
and that the best interest Of all con-
cerned will be promoted by its prompt
approval by Congress.
The Public Utilities Commission will
hold itself in readiness to furnish any
further information that you may de-
SIRE
Shortly after formal approval of the
agreement, which was done at a special
meeting, the commission transmitted II
to Congress Later 1t was made public.
AS in the two preceding merger agree
ments, the consolidated company, under
the commissions new draft would be
named the Capital Transit Co. Its
board of directors would be composed
Of Is members. OF the original direc-
tors, Z would be named by the
Washington Railway e. Electric Co.,
Z by the Capital Traction Co. and
the remaining member would be chosen
by the other IA. The agreement re-
quireS that the directors shall be stock
holders and that majority be bona
flde residents of the District.
Power to Commission.
Approval of the agreement would con-
fer Jurisdiction on the commission to
issue any order reasonably necessary to
secure operating and other economies
contemplated by the merger.
The agreement is conditioned upon
the new company being relieved from
the expense of policemen at street rail-
way crossings and intersections, the
laying of new pavement, the making of
permanent improvements, renewals or
repairs to the pavement of streets and
public bridges, but 1t would be required
to bear the full cost Of paving repairs
or requirements incident to track re-
pairs, requirements or changes made at
a time when the street or bridge is not
being paved. and the cost of one-fourth
Of the other paving, repaving or main
tenance of paving between its tracks
and for 2 feet outside the outer rails.
The new company is not given an
absolute guaranty against competition,
but the agreement provides that no
competitive transportation line shall be
established without the prior issuance OF
a certificate by the commission TO the
effect that the competitive line is nee
essary for he convenience OF the public.
The important paragraph OF the new
agreement relating to appeals from de-
ciSions and orders of the commission
reads as follows: THAT any public util-
ity or any person or corporation aftcct-
ed by an order or decision OF the COM
mission fixing any rate. toll, charge,
schedule joint rate, regulation. require
ment, act, service or other thing COM
planned of (not including a valuatlon)
may commence an action or proceeding
in the Supreme Court of the District
of Columbia to review any such order
or decision.
Procedure Is Outlined.
"The answer of the commission in
any such action or proceeding snail DE
filed within 80 days from the date upon
which such proceeding Is commenced.
In any such action or proceeding the
findings of the commission as to the
facts upon which such order or decision
is based shall be conclusive, II such
findings are supported by testimony and
If such order or decision is not con-
fiScatory"
In a subsequent paragraph the agree
ment provides that II upon trial OF such
action or proceeding evidence Is intro
duced which is found by the court to
be different from that offered upon the
hearing before the commission. or adj
ditional thereto, the court shall trans
nit copy OF such evidence to the COM
mission and shall stay further proceed
ings in said action for Is days. Upon
the receipt Of such evidence the conf
mission would consider it and in Us
discretion modify or reverse its order
or decision.