Evening star., 1933-06-30
BUS COMPANY COST
STUMBLING BLOCK!
IN TROLLEY MERGER
Determination of Firms
"Fair Value" Puzzling Work.
ers on Agreement.
CONCERN is ESTIMATED
AS WORTH 100000
Stockholders Approval Of Union
Of Two Utilities Is Con-
sidered Likely.

The price to be paid Harley Peyton
Wilson for the Washington Rapid
Transit Co. when it is absorbed by the
Capital Transit Co. after merger of the
street railways was reported today to
be one of the most puzzling questions
facing the committees of the two car
companies which are working out plans
for the financial set-up of the consoli-
dated company.
Many of the important and intricate
financial details have already been
agreed upon, it was said. but the merger
committees are still struggling over the
problem of what constitutes fair price
for the bus company.
Under provisions of the merger reso-
luton adopted by Congress, the con-
solidated company will have authority
to acquire the stock and merge with
the bus company. The resolution does
not fix a definite price for the bus
that the acquisition shall be at the
fair value of the property. Determine
ton of the fair value" is left to the
consolidated company, but subject to
the approval Of the Public Utilities
Commission.
Valuation Not Complete.
The utilities commission has never
completed valuation of the bus COM
pany, but unoficially its value has been
estimated at approximately 100000.
In the original merger agreement,
drawn up some years ago, Wilson would
have been paid 81 100000 for the COM
pany. This proposed price was one OF
merger plan, its opponents pointing out
that it was exhorbitant in view of the
fact that the company has not been
out of the red" since Wilson bought it
from the North American Co.
Stockholders of the two car COM
panies will vote Monday on a form Of
agreement outlining the general plan
for unification. Details of the financial
set-up of the consolidated company.
however, will be submitted to the stock
holders for approval at later date.
the fair price" to be paid for the bus
company, but such important provisions
as the number Of shares Of capital stock
of the new company to be issued to
the Capital Traction Co. and to the
Washington Railway & Electric Co., and
the amount of bonded Indebtedness to
be assumed by the consolidated COM
pany.
Predict Approval
In view of the serious financial con-
dition of the two car companies, re-
sulting from a continuous loss in rev.
enue, public utility experts at the Dis
trict Building predict approval of the
merger agreement by the stockholders.
officials of both companies also have
urged the stockholders to vote for ap-
proval of the agreement because Of the
economies that will result through uni
fication.
John H. Hanna, president Of the
Capital Traction Co., in recent letter
to the stockholders, declared:
Your attention is called to the many
advantages which will accrue from a
merger to you, the stockholders of this
company, and to the citizens of the
District Of Columbia.
Costly Duplication.
"The extensive character of the COM
bined property of the two existing
companies and the relatively limited
area in which they operate has neces-
sarily resulted in most costly duplica-
ton of both facilities and services. The
consolidation when effected will permit
the elimination Of large part Of this
duplication. It will exempt the COM
panies from paying the cost Of crossing
police and part Of the pavement ex-
pense now required Of them by law.
1T will permit definite planning for
the future transportation system of the
community and will also, through re-
routing of cars and the Inauguration
of free transfers to all connecting rail
lines, make possible the rendering OF
more rapid and much more satisfactory
service to the public at less cost to
the company Your directors believe
that the continued decline in the use OF
mass transportation facilities will be
checked through the opportunity thus
offered for more economical operation
and improved service to the public"