Evening star., 1935-02-10
Company's Petition Propos-
ina S843,253 Deal StirS
Utilities Officials.
ADEQUATE SERVICE
FIRST, SAYS ROBERTS
Peoples Counsel to File Interven-
ton Petition and Formal Reply
to Car Company Later.

A legal battle will be waged by
the Public Utilities Commission and
Peoples Counsel William A. Roberts
to prevent the Capital Transit Co.
from paying $843,253.87 for acquisi-
ton of the Washington Rapid Transit
Co.
The petition, filed in District Su-
preme Court yesterday by the street
car company, asking that the commits
sions rejection of the purchase plan
be set aside. will be countered by the
Commissioners.
Roberts announced last night he
would file with the court tomorrow a
petition of intervention in the case.
Formal replies to the company's petit
! ton will be filed within a few days
by both Roberts and E Barrett Pretty
man, corporation counsel.
The present issue is law question
revolving around the point of whether
the fair value" of the bus concern
must be the value of the bus opera
ton in a general market or whether
| it must be considered in the light
of the value of the bus outfit to the
| merged street car operation.
The commission said last october
it would not approve the claimed
value to the street car company.
Adequate Service Demanded.
Roberts asserted last night he
would demand that either the bus
concern or the street car company
institute adequate bus service for the
communities now served before he
would drop the fight against payment
| of S843 900 or any sum near that, for
the stock and properties and debts of
the present bus concern.
The petition of the Capital Transit
Co. revealed that Joseph E. Baker Of
lis Broadway, New York, is the sue
cessor to the late Harley P. Wilson,
utilities magnate. as principal owner
of stock in the Washington Rapid
| Transit Co. Wilson formerly was a
director of the North American Co.,
giant utilities holding company. which
controls the Capital Transit Co.
Roberts has started an inquiry to
determine if Baker is associated or
connected in any way with the North
American Co.
In opposing payment Of as much
| as S843, 900 for the bus concern, some
times known as the Sixteenth Street
Bus Line, District utilities officials
declare that its service now is in
adequate to meet the demands Of the
public, that the busseS in service are
worn-out equipment and that the
company has been "in the red" 10
| years.
If the sum of $S43000 is paid for
the bus operation. officials say, the
bill will be passed on to the public
in the course of years, and this is the
principal reason why they oppose ap-
proval of payment measured by the
value of merging the bus company
with the street car company.
Two Extensions Proposed.
Roberts has proposed two extensions
of the bus service to date. One calls
for extension of the Petworth line of
the bus concern from Grant Circle
to the North Petworth area. The
other Is that the bus company operate
| branch of its Sixteenth street line
from Sixteenth street to Rock Creek
Church road at Kennedy street.
If these are not adopted, Roberts
proposes that the street car company
be required to operate a competing
bus service which would run from the
Takoma area down Thirteenth street.
He proposes that this should be an
express line
The act of Congress permitting the
merger of the old Washington Rail-
way & Electric Co. and the old Capital
Traction Co., provided also for acqui-
Sition of the bus concern, but only on
terms approved by the Utilities Com
mission.
This section reads: 1.-THE new COM
pany (now the Capital Transit Coz,
is authorized to acquire any or all of
the outstanding stock of the WASH
ington Rapid Transit Co., at the fair
value thereof and on such terms as
may be accepted by the owners of
said shares of stock and may be ap-
proved by the Public Utilities Com
mission; If and when majority of
the outstanding shares of the said
Washington Rapid Transit Co. is ao-
quired by the new company, the
Washington Rapid Transit Co. shall
be merged or consolidated with the
new company when and if the Public
Utilities Commission shall so require. -
Bus Stock Control.
When the North American Co. was
buying up control over several local
utilities, in 1925, Mr.. Wilson paid
S5l6,000 for stock control of the bus
outfit. The present rejected plan for
purchase of the bus company by the
merged street car company calls for
payment of that amount for the stock
and the remainder of the $843, 900
to cover outstanding debts owed by the
bus c0nnDanV