The Washington times., 1912-09-15
AUGUST OR uLATI ON
SUNDAY, SEPTEMBER is, 1912.
A DISTRICT UTILITIES CONSULTATIONS

daton Of public utility concerns in Washington would,
or might work in the public interest. There are
some other reasons why such a consolidation must be
viewed as doubtful benefit to the public; and the
interest Of the public must be made paramount in
any such transaction.
First as to advantages The transit service of the
city would in the long be better if in control Of
single company. That would insure transfers,
would guarantee against competitive construction in
new areas would mean better systematzation of
the whole transportation fabric. There is no room
for two street car systems in this town. there ought
to be only one.
But, granting substantial reasons in favor Of uni
fcaton, there are also plain difficulties. The one
apparent reason why group Of mysterious promot-
ing fnanciers would be attempting such thing, is
the hope of again initiating the capitalization Of this
business 1t is already inflated a-plenty. The people
Of Washington, after observing the determination
with which the street railways have opposed unver-
sal transfers for many years, will be chary about be-
leving that change of heart has taken place, and
that these same interests are suddenly considering
consolidation in order to overcome possible objec-
ons to transfers Perchance if they could be assured
gratuity of 100000 to $2OOOO,OO0 in addi-
tional capitalization, the price of getting together
these interests would be willing to yed they not
likely to do it merely for the benefit Of the public.
Again, there is an essential difference between
the two big basis street corporations that would
come into consolidation, that makes it difficult to
bring them together. The Washington Railway and
Electric Company is the monument to one gigantic
operation in imitation. 1t is patching together Of
odds and ends, long on capitalization and short on
either condition or service Its stock has been held
for speculation, and subjected to most astonishing
fluctuations. Just lately, it has been up to fig
ures which, if maintained in consolidation and ex-
change deal, would mean that Capital Traction shares
would have to 60 in at immensely exaggerated figures
Capital Traction is far more substantial prop
erty, we'll managed, and comparatively conservative.
1t would be brought into a consolidation, only on
terms that would insure vast increase in the aggre
gate capitalization of the transport business; and
that is just what tine town cannot stand for.
In short, consolidation that would tend, by add
ing to capitalization, to bring BOTH properties to
the physical and operating level of the poorer would
be misfortune. consolidation that would tend
by strengthening both avoiding imitation, and reducing
overhead charges, to strengthen the aggregate prop
erty would be of benefit to the community That sort
of consolidation is not likely to be effected through
private initiation, simply because there would be
"nothin, in it for the organizers The real ultimate
purpose of big deals of this sort is commonly naton
where that motive is absent, they mostly don't hap
pen.
Now take the other utilities mentioned in con-
nection with this rumored deal. The gas properties
are to come in. On what basis? Plainly, it is in the
minds of people planning this transaction, that the
gas stock would be secured by exchange that
would recognize a much greater value in gas shares,
than has generally been conceded by people who
have the public interest in mind. The gas company
claims it has about $l30O000 worth of property.
The best unbiased testimony is that has less than
half that amount Gas stock might be ready to come
into consolidation, strongly underwrtten, provided
it promised to recognize this claim of fat values,
and to establish that claim firmly enough to make It
permanent basis of earnings. Would that be to the
Again, the Potomac Electric Company would
come into consolidation, because il is already con-
troed by the Washington Railway and Electric Com
pany Is it desirable that the electric lighting and the
gas business of the town should be held by the same
interest? Experience OF other cities points an
answer in the negative. Gas and electricity are nat