Evening star., 1934-10-15


quarte. Immediately ct the start Of
public Earrings today.
wills d NICK. Clayton, speaking for
the n ration Of Citizens AssociA-
tions,, handed that the Commission
Afst q ermine whether the North
Americy III, Co. Of New York had any
interesfE direct or indirect, In the
stock. II this question was settled
adirmaS S6ely, then, he said, the entire
case shaild be thrown out, Is such Q
holding Swould be in violation Of the
La FoD4tte anti-merger act.
He ago demanded . valuation OF
the proaerties Of the bus company,
somethiag which has never been done
during Ns existence.
ksberts Demands Data.
RobertA likewise demanded accurate
Information on the interests Of the
North american Co., but opposed
Clayton. move for . valuation. In
an operang statement, Roberts said
that instead Of being worth Sel1, 900;
the bus company would actually Be b
liability 70 . purchaser. 1
He suggested that II . proper sale
cculd ns,a Be arranged that the COM
raission erder the Capital Transit Co.
Do put competitive bus line On Six
teenth street.
The stock which the Capital Transit
CO. nov seeks to purchase Is owned
by Harley p. Wilson, . director Of
the North American Co. The North
American Co. bought It in 1925 from
Leon Arzsold for $4,000 and later
sold 1t 10 Wilson. The Capital Transit
offer of $e43,00 includes this sum
and an additional sum for taking over
the bus c.,mpany's outstanding indebt-
edness. Wilson was represented at
the hearing by George p. Hoover, who
announced that Wilson was unable to
be present because Of illness.
The commission denied Clayton's
motion to proceed to an immediate
valuation. after which Roberts called
on the commission to scrutinjse care
fully the transaction In which Wilson
acquired the stock from the North
American Co. He pointed out the
original acquisition Of the stock by
the North American Co. had been ruled
BY the commission to be Illegal.
Hanna Statement
After Roberts opening statement,
aanna's statement. was read.
In his presentation Hanna said:
1T was the clear intent Of Con-
gresS, In adopting the (merger) res
olution, that the Capital Transit Co.
should obtain control Of the Wash
ington Rapid Transit Co. In order TO
unity oil Of the transit operations In
the District.
THE interchange of passengers be-
tween the Washington Rapid Transit
lines and the Capital Transit lines
under . transfer arrangement, which
will be submitted to the commission
II the purchase Is contaminated. win
furnish an added facility to the
patrons Of each company and CORE
spondmgly increase patronage Of the
combined system over and above that
obtainable by two separate systems"
Reverting to the offer Of his COM
pany Hanna said that before 1t was
made the company engaged Prof. Al
bert 8. Richey Of the Worcester Poly
technic Institute to make an ap-
praisal. Richey will be offered as .
witness during the present case.
THE price agreed to be paid" {"
Hanna aid, "for II ,237 shares Of stock
out Of total Of 21,612 shares out
standing, $516, 6,000s Is the actual
amount paid by tho North American
Co. for this stock when It was pur-
chased In 1925, without adding thereto
any interest or carrying charges dur
ing the period since that date, no
dividends having been paid by the
company.
Condition Better.
THE condition Of the company ID
much better than It vas at the time
Of purchase In 1925 as will be shown
BY later testimony. The purchase Of
the notes Of the Washington Rapid
Transit Co., now held by the North
American Co, u q natural procedure
to be followed after control Is taken
over. The purchase Of the Washing
ton Rapid Transit's stock by the
North American Co. in 1925, and its
later sale to Mr.. Wilson,, which had
the tacit approval Of the Public Utili-
ties Commission, were made In. order
to place control Of this company in
friendly hands. It was greatly 10
the advantage both of the Washing
ton Railway q Electric Co. and Of
the Capital Traction Co. as It relieved
them Of active and hurtful compei-
ton.
1T is distinctly understood in max
Ing the application that the purchase
price approved by the commission
viii not bind 1t in any later determi-
nation Of value for rate-making pur-
poses and that the commission has
the power to order such reasonable
accounting practices with respect TO
the payment as 1t mny deem proper
Tallow Kills Tiremeu.