Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-06
CAPITAL TRACTION
DECLINES TOOFFER
PLAN FOR MERGER
Hanna Sanctions Govern
ment View, but Defers Action
Until congress Is Ready"
ANSWER READ BEFORE
UTILITIES COMMISSIONERS
Non-Approval of Maltbie Sugges-
tions Blocks Negotiations,
Letter Infers.

The Capital Traction Co. today de-
clined the invitation Of the Public Util-
tiles Commission to submit new plan
whereby the street car systems of the
District might be merged. Not only
will the company submit no plan, but
it will enter into no negotiations
looking toward new merger plan until
Congress has either approved a plan
or else delegated its authority to do
so to the Public Utilities Commission,
the Capital Traction Co. said.
The company's letter, signed by John
II. Hanna, president, was taken to the
commission as 1t was in an execu-
tive session this morning. 1t was q
reply to letter sent from the COM
mission to the two street car companies
asking for submission Of merger plans.
Statement Important.
Aside from the attitude of the COM
pany as revealed in the letter, one Of
its most important aspects was a state
ment that the merger plan drawn up
by DR.. Milo r. Maltbie, the engineer
employed by the Senate District COM
plan which was submitted to Congress.
was acceptable to the company and
that the company would have earnest
ly endeavored to have the merger
agreement so modified" as suggested by
DR.. Maltbie, executed and approved by
its stockholders"
The position of the company was to
put the next merger move squarely up
to Congress. Mr.. Hanna said that thu
public and Congress are in possession
Of all the facts and If and when Con-
gress sees fit to approve terms under
which 1t will allow a merger or will
delegate this authority to the commits
sion, the company will be glad to enter
into further negotiations. Until that
time, however, any such negotiations
would be futile and would tend more
to delay than to accelerate the ac-
complishment Of the end. which we
all desire"
Letter Quoted.
The text of the letter is as follows:
I'VE are glad to note from your letter
Of June 90 that the Public Utilities
Commission, as at present constituted,
agrees with the opinion previously ex-
pressed by the commission, by the pub
he OF washington and by the trans
portation companies, that a merger OF
the street railway companies now oper-
ating in the District of Columbia is
desirable for the best interests Of the
people.
quently expressed its concurrence in
this view, provided that such merger
should include all of the public pas
senger transportation business in the
District Of Columbia, and the company
has, through its officers. used every ef-
fort in its power to accomplish this
purpose.
Following the program laid down by
Congress in the so-called merger act ap-
proved March 4, 1925, this company,
after negotiations with the other COM
panies concerned, entered into a unfit
cation agreement, which was submitted
to the commission, and after protracted
hearings changed by it. These changes
were accepted by the companies and the
revised agreement submitted to Con-
gress as provided by law.
"Never Rejected"
"This agreement was never rejected
BY Congress, but on the contrary was
approved by the committee on the Dis
trict Of Columbia of the House of Rep
resentaf YES. The Senate committee,
before E:ting on the merger plan as
submittef. had detailed investigations
made by the Bureau of Efficiency and
by DR.. Milo r. Maltbie, well known
utility expert, employed for that pur-
pose. DR.. Maltbie after thorough study
and investigation. prepared certain
form Of an amended joint resolution,
which received the approval Of both
House and Senate committees on the
District Of Columbia, but which was
not acted on by either Senate or the
House prior to the adjournment Of Con-
gress, March 4, 1929, because Of the
lack of time. Had the legislation SO
proposed and approved been enacted
the management of the Capital Traction
have the merger agreement so modified.
executed and approved by its stock
holders. -
"The public and Congress are in
possession of all the relevant facts. If
and when Congress, in the light OF
these facts, shall see fit to approve
definitely terms, fair alike to the pub
lie and to the stockholders, under
which a merger may be brought about,
or shall delegate the authority for such
approval to the Public Utilities Com
mission, the Capital Traction Co. will
be glad to negotiate with the other
companies to the end that a merger
including all of the passenger trans
portation facilities in Washington,
Sa1egOard1ng the interests OF the pup
lie and protecting the rights of the
company's stockholders, may be ef-
fected.
Further Steps Useless.
TN view, however, of existing con-
ditions we feel that further negotiation
between the companies at the present
time, or further submission to the
stockholders Of mergez plans which
may not become sr1ective, would be
futile and wouA tend more to delay
than to accelerate the accomplish
ment Of the, apd which we all DESIRE"
The lette:. was signs by j. H. Hanna,
president Of the Capital Traction Co.,
and wa$ addressed to Maj. Gen. Mason
M. Patrick, chairman of the commits
sion.
TIE commission also received from
vivian T. Ham, president of the Wash
ington Railway & Electric Co., a let
ter acknowledging receipt of the COM
missions invitation to review the mer-
ger negotiation and pointed out that
the matter would be brought to the
attention Of the board Of directors Of
the company Eat as early q date as
The majority Of the members Of the
board Of directors Of this company are
out of the city and are not expected
to return before July a, the date of
the next reuglar board meeting.