Evening star., 1933-10-23
|CAP|TAL TRANSIT
|NEG0T|ATES FOR
bus LINE PURCHASE
Acquisition Is Expected Be-
fore Merger Becomes Ef.
fective December |.
100000 is UNOFFICIAL
VALUE PLACED ON LINE
Public Service Commission Launch
es Study Of Transfer Problems
Under Combination.

Negotiations for purchase Of the
Washington Rapid Transit Co, it was
learned today- have been started by
the Capital Transit Co. which will oper-
ate Washington's merged transportation
facilities after December l.
The bus company is owned by Harley
Pcyton Wilson. director of the North
American Co.. giant public utilities
holding corporation. which owns a ccn-
trolling interest in the Washington Rail-
way g. Electric Co and a small share
of the Capital Traction Co. capital stock
The purchase is expected to be con-
summated before December !. the date
of the beginning of the merger oper-
alton, so that all major transportation
units will be involved in the unification.
Authorized by Congress
The Capital Transit Co. under pro-
visions of the merger resolution adopt
ed by Congress. has authority to ac-
quire the stock of the bus company
The resolution did not fix a definite
price for the bus company stock, but
merely stipulated the acquisition should
be a. the fair value of the property
Determination of fair value we7 lef,
to the consolidated company. subject
however to approval of the Public
Utilities Commission.
The valuation of the bus company
has never been fixed by the commits
sion. but its value. unofficially, was
placed at about 100000. In the orig
inal merger agreement drawn up some
years ago, Wilson would have been paid
81 100000 for the company. This pro-
posed price was one of the principal OBJ
jections to the original merger plan
its opponents taking the position It was
exorbtant in view of the fact that
the company had been operating at a
loss ever since its purchase BY Wilson
Simultaneous with the disclosure OF
the negotiations for the purchase OF
the bus company, an announcement
was made at the commission tina. a
study had been started of the transfer
problems that will arise between various
elements of the transportation system
December /, when the merger becomes
effective.
The commission has received from Of
ficials of the new company, already IN
corporated as the Capital Transit Co.
the transfer system it proposes to estab-
lish on that date The enabling merger
legislation stipulated that there be free
transfers between lines of the merged
company The proposal of the car COM
pany. it is said. goes somewhat further
in this direction than the congressional
act actually required,
There are other transfer questions
however. it was pointed out. which are
not covered in the companys proposal
These are matters now included in the
study initiated by the commission in
order to afford it a complete background
on the matter. Indications are the
commission will not initiate anything
beyond the proposals of the merged
company officers prior to December
and that the numerous but more minor
transfer matters would be taken up
later The reason is that the commits
sion, beginning next Monday, will be
engaged in daily sessions on hearings
of the valuation of the gas company
properties and will not have opportunity
to hold hearings on other questions un-
til some time in December.