Evening star., 1929-07-03
BOARD DECLARES
AUTHORITY YLACKING
FOR BUS MERGER
Reason Is Given for Failure
to Invite Company to
Negotiations.
SINGLE TRANSIT CONTROL
is FAVORED FOR DISTRICT
Reply to Utilities Commissions Let
ter to Consolidate Expected
This Week.

The lack Of congressional authoriza-
ton for the consolidation Of an inde-
pendent bus company with the street
railway lines of the District was ex-
planned at the Public Utilities Com
mission today as the reason for its
failure to invite the Washington Rapid
Transit Co. to participate in renewal
Of the transportation negotiations.
The act Of Congress authorizing a
merger, 1t was pointed out, applies only
to the traction companies, and 1t would
be illegal for the commission to ap-
prove any plan of unif1cation that in
volved the motor bus company. Under
the old merger agreement which ex-
pired June /, the bus company was
party to the merger negotiations.
provision in this agreement pro-
vided that Harley p. Wilson, principal
owner Of the bus concern, should vest
In the new consolidated company 81 ,237
shares Of stock, and in consideration
should obligate to pay him $596,000
plus interest from February I, 1928, and
assume and discharge all Of the liabili-
ties Of the bus company which amount
ed to $550,000, and all other current
liabilities arising in the normal con-
duct of business.
Favors Single Control.
While the bus company will not be
a party to any new plan of merger
which may grow out OF the commits
sionS move to renew the negotiations,
its members are said to feel that all
Of the mass transportation systems
should be under single control, and that
some scheme may be worked out where
by the consolidated company could
operate the bus line.
This could be brought out legally. it
was explained, by including IN q new
unification agreement a provision
authorizing the traction companies
upon consolidation to purchase the bus
company outright. AS Congress viii
have to ratify any unfiication agree
ment, 1t was pointed out, such pro-
vision In It would automatically make
the consolidation of the bus company
with the street railway lines legal.
Although the commission has not re-
ceived replies from its recent COM
munication to the two car companies
inviting them to reopen merger nego-
tiations, John H. Hanna, president Of
the Capital Traction Co., made an ap-
pointment for this afternoon with Mai.
Gen. Mason M. Patrick, chairman Of
the commission. Mr.. Hanna gave no
intimatfon Of the subject he proposes
to discuss, but it was believed it con-
Germs the merger.
VIII Reply Soon. -
MIR. Hanna announced yesterday that
the answer of his company to the Com,
missions merger letter probably would
be submitted before the close of the
week. The Washington Railway &
Electric Co., however, is not expected to
reply until the latter part of the month,
Sf1RA a inv<ifvy r,f tfc vRr11r
will determine the course OF action, are
out OF the city on vacation trips. The
directorate Of this company will hold It's
next regular meeting July "a. and the
answer to the Commissions communi-
cation probably win be drafted then.
The commissions action In taking the
initiative in reopening the merger dis
cussion, it was announced, viii not
alter In any way its plan to begin
OF the Capital Traction Co. for an
increase in fare. The two subjects, 1t
was said, will be considered tnde-
pendently.
Steps may be taken, however, while
the car fare case Is under consideration;
1t was said, to equalize and make uni.
form the present varied rates Of fare
on the motor bus lines operating in the
territory east of the Anacostfa River.
"A cuANCy Va tAlcnC llk1cS dIlO tA1G 1dIcS
charged was made yesterday by the
commission, and 1t is understood, the
study impressed on the members the
Of a uniform rate of fare.
Four bus lines operate in the terri
tory east Of AnacoStia and the rate of
fare on each Is different. The fare on
the Hillcrest line of the Capital Trac-.
ton Co., Is a token or cents cash.
Two cents is charged for a transfer
to the company's rail line at Sevef-
teenth street and Pennsylvania avenue,
but free transfers are issued to the
same company's bus line which oper-
ates from Randle Highlands to East
ern High School. In other words, a
riding from Hillcrest to the
downtown section is required to pay
two fares, while a passenger riding
from Hillcrest to Eastern High School
would pay only one fare. although both
are REQUIRED to transfer.
The Benning bus line. operated joint
ly by the Washington Railway & Elec-
trio and Capital Traction companies,
charges cents cash. or token, and
cents for transfers issued to rail con-
nections Of either line. The Annapolis,
Marlboro & Washington Bus Co, which
operates the fourth line, has q rate in
the District Of is cents cash, or 10
tokens for 81. This company recently
applied to the commission for authority
to re-establish its former rate of four
Of the existing rate was, ordered Until
August 81, by which time the commits
sion hopes to have the bus fares ad-
justed and equalized in the territory
east of Anacostia.