Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-11-01
Commissioners and Merger"

In directing the corporation counsel to
take such action as may be possible I'M
der the law to check and, If the court
permits, to prevent the consummation Of
the so-called merger plan affecting GER
tain public utilities of Washin gton,
which have been recently projected I'M
der articles Of Incorporation obtained in
Richmond, the Commissioners are mere
ly moving for the protection of the public
interest. obviously hoping to hold the
enterprise back until Congress can meet
and pass upon 1t. There can be no ques-
ton of the ultimate authority Of Con-
gress to scrutinize financial propositions
which are advanced affecting local utility
corporations. 1t has the power to prevent
overcapitalization 1t can pass and is
even now contemplating the passage
Of a law creating a public utilities COM
mission in this District with authority
over the physical management and the
financial administration of all the cor
porations which deal with the public
necessities. In these circumstances it Is
obviously the Commissioners duty to do
whatever they can to prevent the carrying
out Of the pending proposition until Con-
gress has had an opportunity to survey
1t with view to determine it's bear
ing upon the future condition of the cor
porations with reference to the public
welfare.
1t is quite possible that the financial
project of the Maryland Virginia Com
pany, or as 1t is perhaps soon to be call
ed, the Washington Utilities Company, is
entirely sound. 1t may be that every dol
lar of the proposed capital stock and
bond issue. aggregatng $15O.OOO.OOO. will
be legitimately needed in financing all the
companies which it Is proposed to merge
under single ownership. But this Is
not matter which is solely the business
of the capitalists who are investing or
the individuals who are managing the
matter. The public is direct partner in
any such enterprise. 1t furnishes all the
patronage from which the profits are
to come, and it supplies the spaces over
and through which the tracks and con-
Quits of the utilities corporations must go.
1t can. through its legislative represent
atives, determine. within reasonable
limits, the rates of fare to be charged
and the kind of service to be rem
dered by the companies. Repeated
ly a disposition has been manifested,
however, to ignore this public interest
and right, sometimes by the simple ex-
pcUlcuI VI ONcTlOdu1IlS tHS
with such heavy fixed charges that it
is impossible to secure through legisla-
ton or otherwise improvements in the
service or reductions in the rates, even
though conditions amply warrant such
changes.
Thus the District Commissioners are
doing no more than is incumbent upon
them when they take cognizance of the
reported intention of certain corporate
interests to change the capitalization of
local public utilities in a manner to
threaten an overwhelming load of fixed
charges almost sure to check improve
ments in the service in the near future,
and to prevent rate reductions. They
are fully justified in this course by the
fact that under the proposed public
utilities commission law, the passage of
which may be looked for at the next ses-
sion of Congress, such change in the
capitalization of these local companies
would not be permitted without a close
scrutiny in every detail. The fact that
the commission bill has not passed Is no
warrant for Fastening of this enter
prise to get 1t established before Con-
gress can act. The Commissioners will
have the support of the community
in their effort to hold these plans from
execution until Congress has had an OPP
portunity to examine them.