Evening star., 1933-03-28
Inventories of Common Car.
riers Have Reached Ad-
vanced Stage.
UNION OF TWO CAR LINES
HAD HOOVER'S APPROVAL
Public Utilities Commission Re.
Gently Informed of Prog
ress Made.

Determination Of the present values
OF the properties Of the street car and
bus companies of the District will be
held up for several months pending
development of an agreement Of the
companies to merge, it was indicated
today at the District Building.
Inventories of the properties Of the
Washington Railway &, Electric Co.,
the Capital Traction Co. and the Wash
ington Rapid Transit Co. now have
been carried to an advanced stage
This work, the basis for a decision by
the Public Utilities Commission as to
the present values of the companies,
will be completed
Hearings Delayed.
Hearings on the inventory and val
uation estimates, however. likely will
be delayed for time to await expected
action by the directors Of the two car
companies on proposals for a merger
Of the transportation facilities in keep
ing with provisions Of the merger legis-
lation passed at the past session Of
Congress.
The measure authorizing merger of
the three transportation companies,
subject to numerous definite provisions,
was approved by President Hoover on
January IA last. One Of the specifica-
tions was that within six months after
the approval of the act Of Congress
plan for the merger be submitted to
the stockholders Of the two car COM
panies for their action. Thus. prior to
July IA, officials of the Capital Trac-
ton Co. and the Washington Railway
g. Electric Co. must submit merger
proposal to their stockholders.
Interested officials believe the present
earnings of the car companies are not
as much of moment to the patrons OF
the companies as to rates of return and
fares as they are to the companies
themselves. Thus. it is explained.
brief postponement of the hearings
would not be a matter Of concern to
car riders.
Must Merge by 1885.
The merger agreement. presuming an
approval by the stockholders of the car
companies, must be accomplished with
in two years following the enactment
of the joint resolution, or by January.
1885.
The two car companies have merger
committees at work on proposed new
financial set-up. Recently the Public
Utilities Commission. which must ap-
prove the agreement, was informed
progress was being made.
Meanwhile, engineers and account
ants of the Utilities Commission are
completing inventories of the properties
of the companies. The estimates OF
value Of the Capital Traction Co. have
been completed. The cost Of reproduc-
ing the properties of this company new,
according to commission figures. is
placed roughly at S20.000,000.
The reproduction cost figures, how
ever, do not take into account sub
stantial deductions to be made for de-
probation of the properties.
inventories Of the properties of the
Washington Railway g. Electric Co.,
not including trackage and buildings in
suburban Maryland communities, show
reproduction cost new of approx
imately S23 500 900. Both the estimates
are as Of December 81. 1881.
When the two car companies have
merged as proposed. new company
is to be established. the Capital Tran
SIT Co. This merged company would
be authorized to purchase stock of the
bus company. the Washington Rapid
Transit Co., and to consolidate it with
the new transit company, subject to ap-
provA by the Utilities Commission
Inventories of the properties of the
bus company have not yet been COM
pleted.