Evening star., 1933-09-26
STOCKHOLDERSO.K. 0.
TRACTION MERGER
Vote Is Last important Act
to Make Consolidation
Complete.

Stockholders of the Washington
Railway g. Electric Co. and the Capt.
tai Traction Co. today voted in favor
Of merging their street railway lines.
This was the last important act re-
manning to make the merger an ac-
complished fact. although there are
still several technical steps to perform
which will string the legal part of the
merger proceedings out for a few more
days.
All votes cast by the stockholders of
the two companies were in favor of the
merger. Stockholders of the w. R. &
E. Co. cast 107 .335la votes out of pos
sible 10000. and those of the Capital
Traction Co. 83,l04 out of a possible
10000
The Public Utilities Commission al
ready has announced it will approve
the form of merger voted upon today.
It will be necessary to secure this
formal ratification and then to file
incorporation papers with the recorder
of deeos.
Stockholders of the two companies
elected IA of the directors who are to
control the destinies of the Capital
Transit Co.. as the new merged rail-
way will be called. Those elected by
stockholders of the Capital Traction
". u
Hanna, John M. Perry, G. Thomas
Dunlop, c. c. Glover, jr.; Merle Thorpe
and S. Percy Thompson.
Graham Mentioned for Post.
The IA directors elected today must
elect a fifteenth director to complete
the board of the new company. 1t is
said that Edwin c. Graham. president
of the new Hamilton National Bank,
has been slated for this post. 1t is
also freely predicted that John H.
Hanna. president of the Capital Trac-
ton Co., will be given the presidency
of the new merged company.
The essence of the merger plan voted
upon today is that the new corporation
will be formed and will issue 240 900
each. Half of this stock, or 100, 1000
shares, will go to the Capital Traction
Co., and each stockholder in that COM
pany will exchange his stock for stock
in the new company on Share-for-
share basis. Then the Capital Trac-
ton Co. will be dissolved and go out of
business.
w. r. & E. to Get 10000 Shares.
The treatment of the stock to 60 to
the Washington Railway & Electric Co.
is somewhat different. The corpora
ton will receive 10000 shares and in
exchange for it will turn over to the
Capital Transit Co. all of its railway
operating properties. The washington
Railway & Electric Co. will not go out
of business, but will remain in corporate
existence. After the merger, however,
it will own no street railway properties
and its holdings will consist of the
stock of the Potomac Electric Power
Co. and the 10000 shares of stock of
the Capital Transit Co.
The new company will assume the
bonded Indebtedness of the Capital
Traction Co.. amounted to $500, 600
first mortgage bonds, and also 81 4,000,-
900 first mortgage bonds of the WASH
ington Railway & Electric Co., 81, ,703,-
600 first mortgage bonds of the City
& Suburban Railway and $2.906, 900
first mortgage bonds of the Anacostia
& Potomac River Railroad. The two
last mentioned are subsidiaries of the
Washington Railway & Electric Co.
After the merger. according to the
terms of the congressional resolution
under which 1t is formed. the new COM
pany will no longer pay salaries OF
crossing policemen and it will also be
relieved of a portion of the expense of
paving now borne by the two merging
companies.
AS part of the merger, a contract
will be formally executed between the
Power Co., whereby the power COM
pany will furnish electricity needed to
operate the new street car system.
The price initially agreed upon Is
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