The Washington times., 1913-06-17
CAR LINE MERGER
HITS UPON ROCKS
Proposed Utilities Coalition Is
Up Against Commission and
Law Creating 1t.
CONTINUED from First Page.)


of road in the District. Finally, it pro-
poses to build thirty miles of new troll
ley line in Virginia.
These three items. it was explained
at the Public Utilities Commission Of
fees today, appear to be the security
that Is to be given for the 100000
bond issue. While OFFICIALS were indis-
posed to comment in detail, 1t was made
plain that they don't think there is
enonugh value in sight to justify any
such issue.
Without going over the route of the
one officer today, I'VE have judged by
the analogy of similar trolley construc-
ti>l IN general. that this proposed road
would cost from $1,000 to $4,000 per
mile. Thirty miles of 1t would count
UP, at $4,000 per mile, 100000 Then,
suprosing the Washington Railway and
Electric stock were put in at par, it
would represent s., $4,000 more. Tota;
In these two items, 1,550. 200.
That leaves S6. 5000 to be repre-
the company reports 1t owns in the
District. The debt against this would
therefore, be only a little under a
million dollars mile"
They Hesitate.
The street car properties in Wash
ington have never been niggardly
about capitalization. and generous
figures are not shocking to the Public
Utilities Commission. But when 1t
contemplated a request which seemed
to involve bonding seven miles Of
road in the District at the rate of a
million a mile, there was acute hes
itation.
The corporation counsel was sent
for and asked whether, under the
anti-merger act, hte commission had
not authority to forbid any such
transaction on the ground aua tnat tonSid- nSid-
den. The corporation counsel found
a difficulty constituting together the
provisions of the public utilities act
both appended to the District appro,,
priation bill of the past session ana
a seeming conflict exists which may
become the subject of long htiga-
ton.
cept.ble to the construction that mere
after no company may hold anotner
stock; but that in case one concern h's
acquired not to exceed 20 per cent Oh
another's stock. prior to the passase
Of this measure, then 1t may continue
holding that much, Notwithstanding the
legislation.
the law and the cases in the enort 10
inform the public utilities co1ss.S nm. .Sn
holding of Washington Railway shares
bv the Washington Utilities Company
is forbidden, the latter company VIII
be so notified and told that there Is
no occasion to pass on its request for
permission to issue the bonds
On Merits.
II, on the other hand. 1t is decided
! by the lawyers that the Washington
Railway stock may be held, up to 20
per cent Of the total Issue, by hold
ing corporation, then the Public Utili-
ties Commission will have to decide on
its merits under the public utilities act,
whether there is sufficient value back
of the proposed s10.0o00O0 bond issue.
A letter has been written to the Wash
ington Utilities Company, offering to
give a public hearing on this question
of values, pending a decision Of the
legal questions that have been raised,
but no answer has been received from
the corporation.
With this bonding question raised, TIE
whole question Of the administration Of
the public utilities law is fairly before
| the Commission in several Of Its most
important phases Engineer Commits
sioner Harding today made clear that
no such bond issue would be authorized,
| on behalf of the District. until the most
| thorough investigation had made plain
! that full value was back Of 1t. He was
| not prepared to venture any Judgment
at this time on that point.
ITO authorize an issue Of this SORT,
/ would Of course be to give a sort Of Of
1 fetal Endorsement to the presumption
| that these properties are worth the bond
! issue proposed" he said, land therefore
it is a highly important question for us
! to SETTLE