Evening star., 1933-09-10
Rapid Transit Concern Not to
Figure in Present Negotia-
tions, 1t Is Learned.
UNOFFICIAL VALUATION
is PLACED AT 100000
Agreement Is Understood to Deal
Only With Financial Set-Up
of Consolida tion.

The price to be paid Harley p Will
son for the Washington Rapid Transit
Co when it is absorbed by the Capital
Transit Co., after merger of the street
railways. has been omitted from the
agreement on the financial set-up of
the consolidated company which the
Public Utilities Commission has under
consideration
Although details of the agreement
have been guarded with utmost secrecy
since it was formally submitted to the
commission Thursday, it was learned
aast night that the bus company. for
the present, at least, will not figure
in the merger negotiations The ques-
tion as to the future Of this concern,
it was said, will be left entirely to OFF,
cials Of the merged company.
One Of the most puzzling questions
that faced the merger committees OF
the two street car companies while the
merger agreement was being framed
was the price that should be paid for
the bus company. The committees.
however finally decided to wait until
settle the bus question.
Definite Price Not Fixed.
Under provisions of the merger reso-
4ution adopted by Congress. the Capital
Transit Co. Will have authority to &C
qulre the stock and merge with the bus
company. The resolution does not fix
q definite price for the bus company
stock. but merely stipulates that the
acquisition shall be at the fair value of
the property. Determination Of the
fair value" is left to the consolidated
company, but subject to the commits
ston's approval.
valuation of the bus company has
never been fixed by the commission.
UnoHclally, however. its value was es-
tlmated at approximately 100000. In
tne original merger agreement drawn
up some years ago Wilson would have
been paid Sl,200,000 for the company.
This price was one of the principal OBJ
Jectlons to the first merger plan. its
opponents taking the position that the
lgure was too high in view of the fact
that the company has not been out of
the red since Wilson bought it from
the North American Co.
The text OF the merger agreement,
Whlch must be approved by the stock
holders of the Capital Traction and
washington Railway & Electric Cos.
before the consolidation can be con-
Summated, is expected to be made pub
ic early this week. Members of the
commission and legal representatives of
the companies have been discussing IT,,
details at a series of executive confer
ences with view to readjusting anv of
the items that do not meet with ofi-
clal approval
rear OF confusing the stockholders
Should the agreement be published at
this time and changes made in any of
the details during the conferences With
the commission is given as the reason
Tor failure to make the text public.
It Is understood, however, that the
agreement deals entirely with the
financial Set-up of the new COMPANY
and makes no reference to its officers
or board of directors. The merger
resolution provides that the board of
directors Shall consist Of Is members,
of whom shall originally be nomi-
mated by the Capital Traction. by the
Washington Railway & Electric and /
by the IA SO chosen
Commission Must Approve.
Approval of the financial agreement
by the stockholders of the two car COM
panies will be virtually the last step
before actual consummation of the
merger. The agreement, however must
be ratified by the commission, but this
will be a mere formality in view of the
present arrangement Of having the
commission study the document and
eliminate any Objectionable features
before it is presented to the owners
Early ratification of the agreement
by both the stockholders and the COM
mission is regarded as certain in view
of the existing serious financial condi-
ton of the two car companies. In
fact. steps already have been taken to
map out plans for rerouting the car
lines and effecting other economies that
will grow out of the merger