Evening star., 1913-03-05
Board Officials Surprised.

duties of the railway board shall be
taken over by the new commission.
Board officials Surprised.
Officials Of the board were unaware to-
day that their duties had been legislated
out of existence until they were informed
of the fact by a reporter of The Star.
1t was their impression that the COM
mission was not to be dissolved until
July L. the beginning of the new fiscal
year
The situation caused by the going into
effect at once of two of the provisions of
the appropriation act came as surprise
to a number of the local officials. who
had not examined carefully the wording
of the measure.
The matter was considered at board
meeting and order discussed relative
to authorizing Corporation Counsel Thorn
to take whatever steps under the new
anti-merger law he may consider adj
visable to prevent the Washington Ctili-
ties Company or any other corporation
from absorbing local utilities.
Suit Under New Law
1t is expected that formal order on
the subject will be issued tomorrow. Cor
poration Counsel Thomas, 1t is under
stood. is considering filing a suit under
the new law to prevent the Washington
Utilities Company from proceeding with
its merger plans. notwithstanding a suit
of this character is now pending in the
Supreme Court of the District of Colum-
bia.
Maj. Chester Harding, who is to be
Col. Judsons successor as Commissioner
of the District of Columbia in all prob
ability will be the chairman Of the pub
lie utilities commission. Corporation
Counsel Thomas will be the commission 9
legal adviser. and for his additional
services will receive an added compensa-
ton of $1,000. making his total annual
salary $1,000
Mr.. Thomas drew the public utilities
commission bill and also the anti-merger
bill. The new commission will maintain
headquarters in the municipal building.
1t will be provided with a chief clerk, or
other assistants. The office of the in
spector of gas and meters will come under
the supervision of the commission.
Utilities to Be Valued.
One OF the first duties of the commits
sion, after it has been organized. will be
to place a valuation upon the properties
of local public service corporations. The
commission has supervision over all pub
lie utilities with the exception of steam
railroads, the Washington Terminal Com
pany, the Norfolk and Washington Steam
boat Company. and steamboats, that en-
gage in interstate trade.
Should the commission, after it, has
valued the properties Of the local public
service corporations and looked into
other questions affecting the operation
of utilities, decide that the rates
charged for service are excessive. it
will enter an order requiring a reduc
ton in rates, according to announce
ment. Extensive public hearings will
be given by the commission from time
to time.
sion law is said to be one Of the best in
the country. 1t is patterned largely
after WiscOnsins law, but contains
some Of the best features of similar
statutes in effect in number of other
states.
Bill Passed as Drafted.
Complying with a request contained III
q letter addressed to him by Senator
Gallinger, April Z, 1911, Mr.. Thomas COM
menced preparation of the utilities mea-
sure. devoting several months TO the
task The bill, when introduced. did not
contain all the features the corporation
counsel had recommended, but, later.
these features were added. The bill. as
passed and approved by the President is
pra acticalIy the same as MI 1honas or
iginal draft.
Although the fact is not generally
known George G.. Hazelton is partly re-
sponsible for the anti-merger legislation.
Mr. Hazelton prepared a roush dfatt or
a bill on this subject, which was intro
duced by Senator La Toilette. Subse-
nuentlv Mr. La Toilette withdrew the
bill and i'm it's place submitted more
elaborate one, which had been prepared
Inv Corporaton Counsel Thomas and Dan
iel r Garges chief clerk Of the engi-
District. q
Thomas bill is the one which is now a
law.
The anti-merger law will probably have
a retroactive effect. as it prohibits cor
porations from holding as we'll as acQuir-
ing or voting the stock or bonds of any
public utilities corporation organized un-
der the laws Of the District, except with
the consent of Congress.
Test of Retroactive Feature.
Under the authority contained in this
act, Corporation Counsel Thomas, it is
regarded as practically certain, will en-
deavor not only to prevent the Washing
ton Utilities Company from proceeding
with its plans to acquire local utilities.
but to compel this concern to relinquish
whatever local utilities it may have alb
sorbed.
It is probable that one or more suits
will be filed at once, and that the cor
poration counsel will ask to have them
toined with the suit that is now pending.
TIE anti-merger law is the only one of
it's kind in the country. Mr.. Thomas had
no precedents to follow when he was
preparing it. The legislation is expected
TO attract widespread attention. and it
IS the belief Of the local officials that
other municipalities may attempt TO ac-
uuire similar laws.