Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-09-16
The Utilities Combination.

Public confidence in the beneicent in
ten,ions Of the corporation formed in
May for the purpose of securing the
control Of all the public utilities OF
the District would he greater if it
were not for the peculiar circumstances
attending its creation. and the Sc
crecy with which the project has been
envcloped Securing articles of incorpora-
ton in Richmond. without the slightest
disclosure of the fact locally, the pro-
motors of this enterprise have kept their
plans from the public until now. when
they have been brought to light through
no announcement OF their own. While
they disclaim any intention to keep the
matter secret. the very fact that this
incorporation was accomplished four
months ago serves to indicate that there
has been no purpose on their part to take
the public into their confidence until they
were quite ready. OF course. in any stock
purchasing transaction such as this bust
ness involves publicity is undesirable
from the point of view of the promoters.
Nevertheless. the lapse OF four months
since the articles of incorporation were
fled in another Jurisdiction cannot fail
to create at the outset an impression that
may be unfavorable to the point of actual
hostility.
The idea of the consolidation of all the
utilities corporations of Washington under
a single head has been frequently dis
cussed in the past. though no practical
move has ever been made heretofore to
that end. On general principles the COM
munity is not likely to favor it beyond
the combina ton perhaps of the traction
companies. in order to obtain the benefit
OF universal transfers. After that point
has been obtained there is nothing for the
public in any such syndicating OF the
utilities unless it can be assured that con-
sumers of gas and electric power will re-
ceive in the form of lowered rates the
advantage of decreased costs of operation
accomplished through administrative COM
bination.
There is always an instructive appre-
tension in the public mind in any such
case. dread of OyercapitalizatiOn
through the writing into the coalition
bargain OF large promoters profits which
Will add heavily TO the overhead charges.
Every million dollars added to the capi-
talization through excessive bonding or
stock issue to cover the inducements
held out to ground floor investors in
the holding company, is a drain upon the
resources of the composite properties and
an argument I'm case of attempted future
legislation against rate reductions or the
extension of greater privileges to the
public.
1t is whispered on the one hand that
largely through the influence of those who
are at the head of the new corporation
the public utilities commission bill failed
of passage at the recent session OF Con-
greSs. 1t Is asserted on the other hand
that these leaders in the movement are
Indifferent to the fate of this measure.
However that may be. the District would
at this time feel more comfortable with
regard to the future management and
manipulation of these properties If the
commission bill had become a law and
there We're now some method whereby the
formation and development of this great
holding company could be kept under Of
fetal scrutiny and held under check as to
capitalization. II would also be a meas
ure OF security IL this new corporation
had been formed under the laws of the
District OF Columbia, rather than under
those OF Virginia. Indeed. with the proper
sort OF basic statute affecting the lorna
ton and control of companies dealing in
the public needs, there would be much
less danger of DISQUALIFICATION, with
its attendant Ills. than there is undeniably
at present. 50 that the community canno:
fail to feel somewhat disturbed by the
fact. whatever may have been The reIa-
tionship of this fact to the PLANS OF tho.e
Who are now seeking to consolidate all
the public utilities. that the commission
bill which would have had a direct and
important bearing upon the present situa-
ton. did not become a law at the late
session of Congress.