Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-08
Congress Is Asked to Act on
Joint Resolution Seeking
UnifiCation.
LOWER FARE PROPOSED
FOR SCHOOL CHILDREN
New Agreement Lacks Valuation
Stipulation Advocated in Plan
That Failed.

Impatient over the delay of Wash
ington's two street railway companies
in renewing negotiations for a merger.
the Public Utilities Commission took
the initiative yesterday and sent to Con-
gress joint resolution embodying a
new unification agreement.
The action of the commission did not
come as a complete surprise, though it
was unexpected at this time, since all
OF the preliminary arrangements and
the actual framing of the new merger
plan had been clothed with utmost
secrecy. 1t was significantly timed,
however, to precede the announced
move of the car companies to appeal to
the courts for an increase in fare which
the commission last month fatty re-
fused to grant. The companies, it Is
understood, intend to file the appeal
tomorrow in the District Supreme
Court.
Similar to Original Plan.
The new agreement is strikingly sim
liar in detail to the original plan the
commission drew up and submitted to
the companies in August, only to have
1t rejected, although it does not def
nitely set forth the capital structure, the
stock, bonds and liabilities of the
merged company nor the division of
stock. 1t does, however, stipulate that
the capital structure shall be in strict
accord with existing laws and that the
total liability of the new company shall
not exceed the total liabilities of the
two existing companies.
An agreed valuation, which proved &c
be the principal target of criticism in
the original merger agreement approved
by the former commission, which died
for lack of congressional ratification, is
absent in the new plan. The commits.
sion covered this essential element by
writing into the new agreement that the
merged company should enjoy the pres
ent valuation or rate bases now pos
sessed by the two companies pending a
valuation of the properties of the con-
solidated company.
Reduced Fare for Students.
The new plan has three cardinal fea.
lures from the standpoint of the public
1t provides reduced fares for schoo'
children, the rate to be determined by
the commission; continuance of the
existing rate of fare for a period of two
years unless changed by the commission
in the meantime, and free transfers at
any connecting point on the car lines
Transfers between street cars and buses
however, would be issued, under the
agreement, under reasonable terms and
conditions" subject to approval of the
commission.
Other major provisions in the new
agreement authorize the merged com.
pany to acquire all of the outstanding
stock OF the Washington Rapid Transi
Co., which would be consolidated with
the railway company when and If the
commission so requires, and directs the
new company to take over all existing
contracts of the Washington Railway
q Electric Co. for the sale of power tc
other railway companies.
An opinion that prevailed in utility
quarters that the commission would
make It's new merger plan compulsory
was diSpelled by another provision
which sets forth that the agreement
snail not become effective until ratified
oy vote OF more than a majority of
the stock Of the two companies. The
agreement, however, must be submitted
to the stockholders within six months
after its approval by Congress.
Denies Valuation Appeal.
Still another significant feature of
the new agreement denies the merged
company the privilege of appealing to
the courts from valuation fixed by the
commission, and permits only a review
by the courts of rates, regulations, or
derS and decisions, through a Stipula-
tlon that in any such proceeding, the
findings OF the commission las to the
facts upon which such order or de-
cision is based shall be conclusive, if
such findings are supported by teSti-
mony and If such order or decision is
not conf1scatory"
Copies of the proposed joint resolu-
ton, with its untf1cation agreement,
were sent to Chairman Capper Of the
Senate District committee and Repre-
sentative LongWorth, Speaker of the
House. In the letter Of tranSmittal,
Brig. Gen. Mason M. Patrick, chairman
of the commission, pointed out that the
commission is of the decided" opinion
that the agreement is fair to the public
and the two companies, and that the
"best interests of all concerned will be
promoted by its prompt approval by
Congress"
Text OF the Letter.
IT am incloSing herewith a suggested
Joint resolution embodying a form of
street railway merger agreement, with
the earnest recommendation that it be
acted upon favorably by both the Sem
ate and the House of Representatives.
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