The Washington herald., 1912-09-20
UTILITIES MERGER
lNTENSIFES NEED
OF COM MISSION
Continued from Tnge One.

way Of resolution and appointment OF
committees to combat the scheme. Most
of the business men of the city have
expressed doubts of the wisdom of the
plan. being fearful that the usefulness
Of the railroads will be hampered by
loading them down with a greater vol
ume of securities.
The acting corporation counsel has put
forth the opinion that the proposed mer-
ger. whether it involves all the public
utilities or only a part Of them, is con-
trary to the Sherman antitrust law and
that any such merger completed would
invoke the interference of the Depart
ment of Justice as was done in the
Northern Securities case with a like re-
suit. namely, the dissolution Of the mer-
ger.
Commissioner Judson's Views.
Engineer Commissioner Judson re-
Viewed the statement of President King
asking some pertinent questions regard
ing the company's finances. which have
an important bearing upon the feasibili-
ty Of the plan. 1T seems peculiar" :"
said the commissioner. that a corpora
ton In such need of funds as stated by
its president should, a few months past
have doubled the dividend on its common
stock.
1T may be noted that the common
stock Of the Washington Railway and
Electric Company was quoted a year
ago at "a, while now. with the increased
dividend. 1t is quoted at s0'' Commits
sioner Judson continued.
IF public utility corporation. which
OF course. should be carefully and con-
servatively financed. needs additional
capital. It seems a queer way to begin
to raise it by having stock sold In q
great holding company at 10 cents on
the dollar. and in large part purchased
by officers and directors Of the needy
corporation, rs has been reported.
Recently The Potomac Electric Power
Company, the stock of which is owned
by the Washington Railway and EIec-
trio Company. increased or authorized
the increase OF its capital stock by S.
10000. Why does not the sale Of this
stock put the Washington Railway and
Electric Company in funds?
Suggests Better Plan.
. TT certainly does look as though the
capital stock sought to be secured was
principally in the shape OF profits for
certain individuals. And somebody must
furnish these profits. Who is this to
be? I am afraid, in the long run, II is
to be the public.
"A public utility law doubtless would
provide for the issue Of bonds for all
proper purposes. Let US have a public
utilities law before anything else is
done"
prominent real estate man. whose
knowledge of financial matters in Wash
ington is extensive, in discussing the sub
ject yesterday with a Washington Herald
reporter said this:
I'VE are undoubtedly at a point in the
development of the city when II will
be necessary to extend the street rail-
ways The existing lines Will be called
upon to eXpend large sums in new tracks
and in the betterment OF those down.
They will need money. but doubt
whether the forming of big holding COM
panies. watering of stock, and the issue
Of bonds under blanket mortgages is
the best way to accomplish the end
sought. I also quite agree with Com
missioner Judson that there is something
queer in the proposed deal which battles
and puzzles me-