Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-01-13
Subcommittee to Submit Re-
port to Senate D. c. Group
Tomorrow or Tuesday.
STOCKHOLDERS O. K.
DECLARED NECESSARY
DR.. Maltbie Concludes Conferences
and Will Leave at Once
for West.

that the traction companies will accept
merger containing the essential points
laid down by it several days ago the
Senate subcommittee handling the ques-
ton is ready to submit the revised plan
to the entire Senate District committee
for approval early this week.
DR.. Milo r. Maltbie, the subcommit-
tees adviser, concluded his conferences
with company officials yesterday after
noon and plans to depart Immediately
for California, leaving with the sub
committee the rewritten plan for bring
ing about .nification.
Chairman Capper of the subcommit-
tee explained last night that if Con-
gress enacts the consolidation plan as
revised by the subcommittee it will be
subject to ratification by the stock
holders.
Text Held Up.
The text of the unification plan as
amended by DR.. Malthie will not be
made public until the subcommittee
presents it to the Senate District COM
mittee tomorrow or Tuesday. 1t was
| made clear at the Capitol, however, that
it will adhere to the principles stipu-
lated by the subcommittee several days
ago, which were:
| Elimination of the fixed valuation
| from the contract, provision for re-
valuation to be completed within two
years and that the rates of fare remain
| undisturbed until the new valuation Is
completed. except that universal free
fra ncfnrc hQtHppY1 1iroc honnYoo Of
fective upon merger of the companies.
There were number of other ques-
tionS secondary in nature that were
not set forth in the subcommittee
declaration of principles. but which
were gone into by Dr. Maltbie in the
| frequent conferences he had with trac-
| ton officials during the past few days.
Division on Fares.
After the subcommittee had been in
consultation with DR.. Maltbie for two
hours yesterday morning, Senator Cap
per indicated that the subcommittee's
decision to leave valuation figures out
| OF the contract and to provide for q
| revaluation appeared to be no longer
an obstacle to final agreement. At the
same time the Senator indicated the
company officials were reluctant to
agree to the stipulation that fares
should remain unchanged for two years,
instead of one year, as in the original
merger plan.
DR.. Maltbie called on the chairman
of the subcommittee again late yes
terday after he had concluded his de-
l1berations with the company officials.
Senator Capper did not undertake to
say what attitude the representatives
of the companies now hold toward all
OF the changes made by the subcommit-
Tee, but there was an atmosphere of op-
timism at the Capitol that the long
awaited merger would be completed on
the basis proposed by the subcommittee.
The fact that the subcommittee is
arranging to proceed promptly with the
presentation of its rewritten plan to
the full committee also was regarded
as an indication that those in charge
of the legislation believe the authority
to merge on this basis will be accepted.
Seen as Improvement.
| Senator Capper said last night he re-
! garded the revised plan as a great i'm
provement over the original one and ex-
pressed the belief it would appeal TO
Congress as one which safeguards the
/ public interest
merger resolution which the subcom-
mittee will ask the full committee to
approve this week will contain changes
in phraSeology in several sections in
addition to those dealing with valua-
ton and continuation of fares for two
years.
The stockholders of the transit
companies and not Congress will write
the final chapter of the long pending
merger agreement. it developed last
night. following conclusion of the nego-
tiations between the traction officials
and DR.. Maltbie.
The changes to be made in the uni
fication agreement it was pointed out
by transit officials, must have the ap-
proval Of the stockholders Of the
three companies involved before actual
cOnsummation of the merger. even
though Congress should ratify the re-
viSed contract. The companies had
hoped the agreement would be ratified
without modification which would OBJ
yiate its return to the owners for re-
consideration.
Company officials emphasized that
they had not accepted any of the
changes directed by the Senate subcom-
mittee in the discussions with Dr. Malt
bic and said they had no authority TO
do so. In the conferences, however.
the valuation expert, it was said. was
given clear understanding of the at
titude of the companies with respect TO
the committees principles of merger
and told that when Congress passes a
Joint resolution authorizing a consolida-
tion. the revised agreement would be
submitted to the owners for final ac-
ton. Maltbie Is understood to have
consented to write into the altered con-
tract a provision setting forth the con-
dition for ratification by the Stockhold-
ers after congressional action.