Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-18
MOTOR BUS FIRMS
MERGER REPORTED
Investment Banker Reveals
Program for Expansion of
Present Services.
Special Dispatch to The Star.

WINCHESTER, Va, December 49,
Merging of a number of motor coach
companies operating in Virginia and
nearby States and the District of Co
lumbia, economies in operating costs
and elimination, to some extent at least,
of irritating competition and rate cuts
were reported here today following an
nouncement of the sale of stock and
equipment of the Eastern Public Serv-
ice Corporation to United Utilities, now
being organized for incorporation under
Virginia laws.
j. H. Lennon, investment banker,
Hartford, Conn.,, who authorized an
nouncement of the purchase Of the
Eastern by the United, with which he
is associated, would not, however, con-
firm persistent reports that other lines
were to be absorbed by the new corpo-
ration. He said he and his associates
were busy just now arranging final de-
tails OF the United-Eastern transfer.
Exchange Of Stock Voted.
Stockholders of the Eastern Corpo-
ration, meeting this week in Washing
ton, voted to exchange their stock for
shares of equal value In the new COM
pany and, in addition, to accept APP
proximately $3.50, 900 for its assets, in
GLIDING motor coaches and other equip
ment The Eastern operates a large
feet of coaches between Washington
and Knoxville, Tenn. The United also
acquired the Eastern's franchise and
other rights. Earl Plug, Roanoke,
Va, will continue as operating super
visor, and the personnel will not be
changed, it was said.
The Old Dominion Stages, an asso-
ciated company of the Blue & Gray
Transit Corporation, also operates
fleet of coaches in the same territory
and Is in competition with the Eastern.
The Blue g. Gray operates a line from
Winchester through portions Of West
Virginia to Clarksburg and beyond
Shenandoah Stages, organized recently
by John A. Towns, Harrisonburg, Va,
likewise operates coaches between
Washington and the Shenandoah VAL
ley and also from here to Chambers
burg, Pa. Objections to its Virginia
operations were raised before the State
Corporation Commission recently by
the Eastern & Old Dominion Stages,
but it is continuing under authority of
an Injunction granted by United States
District Judge Groner OF Eastern Viz
GINA.
There are several other companies
operating on routes in Virginia and
nearby States, with Winchester as a
central converging point on six main
coaches enter and leave terminals here
daily.
Mr.. Lennon said transfer of the stock
of the Eastern to the United would
take place early in January. ALREADY,
he said, orders were being given for
eight additional coaches Of the parlor
car type, to be used between Washing
ton and Knoxville, and that other new
equipment will be placed in service.
Associated with Mr.. Lennon, he said,
in organizing United Utilities were
number Of prominent men OF the
East including Ralph Shoat OF the in
yestment firm Of Shoat g. Shoat, Ro-
anoke, Va; former United States Sena-
tor N. s. Dial Of South Carolina. now
of Washington; H. w. Warden, former
vice president Of the Continental
Trust Co, washington, and Col. G. w.
Pratt of G.. w. Pratt g. Co., investment
bankers, Washington.