Evening star., 1933-07-03
stockholders 0. K.
TRACTION MERGER
IN VOTING TODAY
BaI|oting Unanimous by
Shareowners of Capi.
tai Traction Co.
OUTCOME WAS FOREGONE
| CONCLUSION TO PUBLIC
New Company to Take Over All
Transportation Property
Of Two Concerns.

Consolidation Of the Washington
Railway d. Electric Co. and the Capital
Traction Co. into a single street rail-
way system to be known as the Capital
Transit Co. was approved today by
stockholders of the parent companies.
The long-discussed merger. as pro-
posed by Congress in joint resolution
passed early this year. was accepted in
a landslide Of ballots cast this morning
by the thousands Of shareholders OF
the veteran traction concerns.
Capital Traction stock owners cast a
unanimous ballot for the merger, by q
vote Of 1885 to none against.
The Washington Railway & Electric
Co. stockholders also gave unanimous
Endorsement to the proposal at a meet
ing In the Pepco Building. Out OF
1900 shares outstanding, 109,753 votes
were cast in favor Of the merger and
none against it. the company an
nounced this afternoon.
The voting was accomplished with
little or no formality and none of the
excitement usually apparent in an elec-
tion. The vast majority of the ballots
were cast by mail and the tellers in
the executive oflces Of the two COM
panies had little to do further than
open the letters and record the returns.
Outcome Known.
Suspense was lacking, because the af-
f1rmative outcome of the balloting was
regarded In advance as a certainty
Stockholders were known to be willing
to try the merger plan as the only solu-
tion left for the critical financial prob
lem presented by rapidly declining reve
nues.
The companies owners voted to adopt
a f1ve-point unification agreement drawn
up by Congress. This agreement lays
the groundwork for formulating actual
details Of the merged street railway
system.
The agreement calls for establishment
Of new company to take over all prop
critics Of the Capital Traction Co. and
all transportation properties Of the
Washington Railway e. Electric Co. The
latter is affiliated with the Potomac
Electric Power Co.
IS on New Board.
The board of directors OF the new
Capital Transit Co. will consist Of IS
members, Of whom each of the merged
systems will contribute directors, with
the fifteenth member elected by the
other IA directors
The Capital Transit Co. will have au-
thority to absorb the Washington Rapid
Transit Co., at present its only bus
competitor locally. This additional
merger would be effected through pur-
chase of the stock Of the bus company
After consolidation, the Capital
Transit Co. will be protected from all
street railway and bus competition not
considered by the Public Utilities Com
mission as absolutely essential to public
convenience.
viii Lquidate Firm.
The new company will assume all
liabilities Of the Capital Traction Co.,
and will liquidate that company after
proper exchange of the new stock for
that of the Georgetown company.
Many vital details of the financial
set-up must be worked out later. Com
mittees in both companies are studying
these details and will submit a Joint
plan for another vote by the stock
holders.
The question Of competition for the
new company already had reared its
head. The Public Utilities Commission
next Friday will hold hearing on ap-
plications Of the Alexandria, Barefoot
and Washington and the Arlington
Fairfax bus lines for permission to carry
intrastate passengers here. The railway
companies are preparing to make q bit
ter fight against the applications.