The Washington times., 1913-02-18
THE MERGER DEMURS.

Nearly three months ago the corporation counse
of the District filed action in equity, asking an in
junction to restrain the Washington Utilities Com
pany and various others from acquiring control o
public utility corporations operating in this com
munity. The Washington Utilities Company is th
latest form of holding corporation for holding cor
poratons, devised under the laws of Virginia 1t il
the instrument through which the merger promoter
have hoped to get together the public service prop
critics. and to initiate their capitalization to whatever
extent may seem desirable-that is profitable to ths
manipulators
To this petition the managers of the utilities cor
poration have now filed demurrer. The Districts
right to bring such suit is denied, and the court is
held to lack jurisdiction Its power to interfere with
the purchase of the utilities is broadly denied.
As matter of law the defendants are probably
right. 1t may gravely be doubted whether the Dis
trct authorities, when they ordered the suit to be
brought anticipated that it would be successfully
maintained They believed however, that tho condi-
tions then prevailing constituted crisis in which
every possible resource of the law should be drawn
upon; every chance of preventing public calamity
should be tried out. If nothing more could be done,
at least the consummaton of the merger project
might be harassed and delayed until Congress would
pass the public utilities legislation and thus place in
supervise such gigantic transaction as has been
undertaken.
will not do to assume that the bringing Of this
suit even though il shall ultimately be thrown out Of
court was useless or fruitless On the other hand
the. proceeding will have served q most excellent
purpose, for it will have demonstrated how sadly un-
protected the interests of this public 1t is prob
able that there is not another jurisdiction in the land
in which the game Of ducks and brakes could be so
recklessly and irresponsbly played with the great
public service facilities of community. Assuredly,
there is none in which crisis of the sort which i'm
pends in Washington would receive as little attention
as this one has attracted from the legislative au-
thority.
The case is now complete; rather, it will be
whenever this suit is thrown out of court doubt
less will be in due time. Washington will be at the
mercy of the enterprisng managers Of the greatest
irrigation project in public securities that is be-
ing attempted in any city in the land. If that project
is carried out, this city will be compelled to carry,
through all its future, burden that will have been
imposed upon it while Congress saw and knew just
what was doing. That burden will make the cost OF
living higher here will indirectly serve to necesstate
still higher governmental expenses and when these
added expenses come under examination by the very
Congress that refused to prevent their imposition,
will wonder why Washington costs so much to govern
Relief during the present session of Congress is
now out of the question But an extra session will
be with us in a few weeks. At nat time, there will
be no division of responsibility. The Democratic
party will hold undivided power. 1t will be able, fI
it is only willing, to give this city protection. If it
shall refuse it will be derelict in the performance of
a duty that has been made just plain as it we'll
could be.
What is the incoming Congress, the incoming
Administration, going to do about it?