Evening star., 1936-04-21
TRANSIT MERGER
IS DUE TO FOLLOW
$4,000 PRICE CUT.
SO Per Share Slash Dictated
by Utilities Commission
Is Accepted.
JOINT OPERATION WILL
EXIST UNDER NEW PLAN
Free Transfers to Be Granted in
Accordance With Present
Practice of c. T. c.

Merger of the Washington Rapid
Transit Co. with the Capital Transit
Co. today appeared probable at an
early date as the result of acceptance
by the bus company's majority stock
holder of a slice of $4,000 in the
price. dictated by the Public Utilities
Commission, to bring it down to
$478,912.
Notice that J. E. Baker Of New
York, owner of all but 375 OF the
2l,6l2 shares of w. r. T. stock, agreed
to a reduction from $40 to 81 per
share and other commission stipula-
itons, was filed with the body late
yesterday by President John H. Hanna
of the Capital Transit Co.
Joint Operation Is Due.
Joint operation of the street car
and bus lines will be ordered when
an amended petition for the purchase
is approved by the commission, under
its terms announced last week. The
commission will approve the new plan
promptly unless something unexpected
arises.
First fruits Of the merger will be
the granting of free transfers. to the
same extent as they exist between
lines of the Capital Transit Co. The
10-cent fare on the w. R. T. buses
would be retained, at least until the
commission holds public hearing
on proposed uniform bus fares.
There would be free transfers to all
intersecting lines of the Capital Tran
sit Co., except on the extra-fare
buSses. such as the Chevy Chase de
luxe coaches.
Bus Lines May Be Extended.
With consolidated operation, some
of the w. r. T. busses operating now
to Petworth or Chillum Heights may
be extended farther toward Takoma
Park to improve service in those areas.
Both concerns are under the finan-
cial control of the North American
Co.. utilities holding corporation. The
w. r. T. owes the North American
a debt of 1927 ,253, which will be as
sumed by Capital Transit. The COM
mission stipulated that the rate of
interest be cut from to S per cent
and required that more than q year
be allowed for payment of the note.
In September of 1884 the companies
proposed a purchase price of s8i3, ,178.
That was rejected a month later by
the commission. The offer of $780,
624 was submitted in February of this
year. When the first move for con-
solidation was made nearly 10 years
ago. Harley P. Wilson, then a North
American director. proposed payment
of Sl,146,000 for the bus concern.
Peoples Counsel Roberts protested
today the commission had failed to
cover number of points in its state
ment of stipulations to the companies
regarding the pending merger.
Commission officials previously had
explained that their letter to the COM
panies did not constitute an order,
but that final orders would be given
in action on a new petition which
the companies are now drafting.
Roberts declared there is as yet no
provision for corporate merger" of
the two companies, that the commits
sion's letter does not specify terms of
a physical merger, whether by rental
or purchase; that there is no pro-
vision forbading use of the authorized
purchase price in a subsequent rate
proceeding; that there is now no pro-
vision controlling accounting entries
resulting from merger and that the
commissions stipulations in its letter
did not include suggestions for bus re-
routing,