Evening star., 1933-07-02
Stockholders Vote Tomorrow
on Unity, but Now Fear
New Competition.
MOTOR LINES SEEKING
SH0RT-HAUL BUSINESS
Traction Companies Fear Precedent
in Allowing Service Along In
terstate Routes.

petition by the street car merger reso-
luton, the traction companies, it de-
veloped yesterday, have been forced
into the position of defending them
selves against the efforts of two inter
state bus lines to cut in" on tnelr
business
The irony Of the situation is that
tomorrow the stockholders of the car
companies Will vote on >the merger
agreement, the result of which Will
definitely determine whether there is
TO be a consolidation or a continuance
OF the existing Independent operations.
The impending fight of the street
railway companies against the inroads
of competition involves the applica-
tions of the Alexandria, Bancroft and
Washington and Arlington Fairfax bus
lines for authority to 90 an intra-
state business. These, as well as other
interstate lines running into Washing
ton. are not now permitted to haul
intrastate passengers.
Hearing Set Friday.
A hearing on the applications viii
be held by the Public Utilities Commits
sion Friday, at which time the car
companies are expected to register
vigorous protest against the plan and
cite the guarantee in the merger reso-
luton as one OF the principal points
of objection.
The applications of the two inter-
state bus lines are viewed at the Utii-
ties Commission as a move 10 get some
Of the passengers of the car companies
who work at the Bureau of Engraving
and Printing and the Department of
Agriculture. Both lines operate busses
past these Government departments.
The car companies. however, it was
said, not only resent the move. but fear
if the applications are granted, it will
pave the way for other interstate lines
to follow the same procedure, and fur
ther curtail their business.
The ballot boxes for the stockholders
vote on the merger agreement tomor-
row will be open from 11:15 am. to
IL noon. In view of the serious f1nan-
cial condition of both companies, re-
sulting from a continuous loss IN reve-
nue.. public utility experts at the Dis
trict Building predict approval of the
agreement.
Ballots to Be Checked.
A close check will be made On the
ballots at the utilities commission 10
ascertain the number Of shares voted
by the North American Co., which has
a controlling interest in the Washing
ton Railway & Electric Co. and Owls,
according to last reports, 26 per cent
of the voting stock of the Capital Trac-
ton Co.
The resolution to be voted on by the
stockholders reads as follows:
Whereas, by the provisions Of .
joint resolution of congress, approved
January IA, 1888, as amended Febru-
ary 16, 1888, to authorize the merger
rs rfro tlyrrny f.
ing in the District, and for other pur-
poses it is provided that form Of
agreement therein described as uni
f1cation agreement shall be submitted
to the stockholders of the Capital Trac-
ton Co. and Washington Railway &
Electric Co. for their action within
six months after its approval by Con-
gress: and,
Whereas, such form of agreement
has been duly submitted to this meet
ing for action;
Now, therefore, be it resolved; That
the said form of agreement be and the
same is hereby approved; and
BE it further resolved, That the
proper officers of this company be and
they are hereby authorized to negotiate
for a proper distribution of the securi-
ties of the proposed new company as
provided in said form Of 'unlflcation
agreement and any and all other mat
tiers left for adjustment between this
company Capital traction. and the
Washington Railway & Electric Co,
and to submit a definite contract en-
bodying the same in due form to
further meeting of the stockholders OF
this company, to be held pursuant TO
the terms of said joint resolution
Agreement Weighed.
The agreement which the stockhold-
ers must approve provides:
THAT the new company shall be
known as the Capital Transit Co,
which shall take over all of the proper
ties of the Capital Traction Co. and all
of the transportation properties OF the
Railway & Electric Co.
2-That the board of directors shall
consist of Is members, seven of whom
shall originally be nominated by the
Capital Traction, seven by the Wash
ington Railway & Electric Co., and one
by the IA SO chosen.
3-That the new company will be au-
thorized to acquire the stock of and
merge with the Washington Rapid
Transit Co., its only local motor bus
4-That after the consolidation is ef-
fected no competitive street railway or
bus line may be established, without
the finding by the Public Utilities Com
that such new line is necessary
for the convenience of the public.
5-For the assumption by the new
company of all of the liabilities of the
Capital Traction Co., and the exchange
of stock in the new company for stock
in the Capital Traction. Co., followed
by liquidation of Capital Traction.
The agreement, however, does not
contain any of the important details as
to the financial set-up Of the new COM
pany. These now are being worked out
by committees representing each COM
pany, and when agreed upon will be
to the stockholders at a later
date for approval.