The Washington times., 1912-09-17
PLAIN QUESTIONS THAT MUST BE
ANSWERED.

The optimistic and mysterious group OF gentemen
who have undertaken to promote consolidation OF
all the public utilities Of Washington will find that
vague promises Of large public benefits will not dis
tract attention from the main issue. That main issue
is whether an inflated holding company is to be per-
ntted to grab the public service facilities Of the town
and manipulate them to its liking, without any pos
sibe consideration for the communy's interests.
This situation does not look good. If matters
go very far, there will surely be Congressional
investigation, in the course of which very pointed
questions will be asked. They will include such
as these:
What influences we're able to prevent the House
District Committee, month after month, from meet
ing and considering the public utilities commission
bill?
Did members of that committee knoW, at the time
when they persistenhy refusing to consider that
legislation that this consolidation scheme under
consideration?
Did they knop that promoters of the, consoldd-
tion wanted to effect before the utilities bill passed.
because they feared that, after such measure had
become law it Mould be impossible to carpe the
melon that they SAN in their minds eyer
What disposition mas made, share by share, of the
stock that has already been issued by the corporation
which proposes this consolidation? Who got it, who
Col. William V. Judson, of the Board of Commits
soners of the District has lost no time condemnng
the project IL desire, and think it my duty he
says, ito protest against the accomplishment practI-
cally in secrecy and without the knowledge Of the
public, of such violent change in the status Of our
public utilities"
Right now is good time for overenterprisng
promoters to 60 slow For months before Congress
adjourned public utilities commission measure was
pending before the House, having passed the Senate.
Had it become law SUCH A THING AS A SECRET
OPERATION OF THIS KIND WOULD HAVE
BEEN IMPOSSIBLE. The commission would have
had authority to vse to veto to modify any plan OF
merger it would have been authorized to make physi
cal valuations of properties, to specify the terms on
which consolidation might be undertaken, to lim. the
amounts of securities to be issued, impose terms
and conditions preservative of the public interest,
and to prevent the entire procedure unless convinced
that il calculated to serve the public.
There was vast mystery about the inability or
unwngness Of tine House District Committee to
get quorum for consideration of this bill. Con-
gress finally adjourned without action on it.
NOW 1T DEVELOPS THAT THE PROMOTERS
OF THIS CONSOLIDATION WERE FEVERISHLY
PUSHING THEIR PRELIMINARIES, IN SECRET
AND MYSTERY, EVIDENTLY WITH THE VERY
PURPOSE OF MAKING THEIR COUP BEFORE
A PUBLlC UllLlllES COMMlSSlON OOULD
BE INTERPOSED BETWEEN THEM AND THE
ACCOMPLISHMENT OF THEIR PROFITABLE
PURPOSE.
1t doesn't look good
During that very period, when occult but assured
ly powerful influences holding back the 'egs-
laon that would have prevented rape of the pub
lies interest, the stocks of the Washington Railway
and Electric Company were being doomed AMI
boosted and marked up to unheard-of figures. Now
it is explained that Washington Railway is the key
to the proposed consolidation, and that its shares
were being jacked up to point at which highly
profitable trade could be made in them.
1t doesn't look good
The public is going to be represented in any such
| transaction as this. 1t will not do to imagine that
Washington is so sleepy or Congress so ar,iaby
ac1uieScent that such deal can be pulled off with
out row being kicked up.
1t would be well for gentlemen to bear in
mind that the charters under which the Dis
trict of Columbia utilities exist, are Congress
sional charters, granted for no fixed term of
years. and liable to be terminated by act of
Congress at any time. To demand heir
abrupt termination would be 4 drastic step
but it is liable to prove the necessary alterna.
tive, in the effort to protect the public s
rights, if speculations of this sort are to be
pressed too far.