The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1916-04-25
UTILITIES BOARD
SAID ,TOD|SAPPROVE
CAR LINE MERGER
MerSsrs Indicate Scheme May
Not 30 ain the Interest Of
the Public"

Although the aBitlmore capitalist
interurban electric railways center
Ing Ia Washington. havo not yot con
suited the Public Utilities Commits.
sion. II was Understood at the Dis.
trict Building today that the com
mission would look with jisfayor up
on the project.
The members OF the commission
stated today that they had heard ru-
mors Of the proposed merger for sew
eral weeks, but the proposition had
not been called to their official at.
tention. They Indicated that they had
heard enough to convince them that
the com bination IL not IN the Inter-
est OF the public ut This time and
that the application when made
woutl be considered strictly on Its
The commission Ii now engaged in
Veaclng q valuation on the property o.
ali the Washington corporations includ-
was stated definitely today that moth
ing will he allowed to interfere with the
completion OF these valuations"
The Public Utilities Commission MEM
beers intiinated today that they saw in
this rev proposal another move to him
der the valuation work and ito accom-
pltsh through Baltimore capitalists
what the advocates, Of the ,aghinHton
Utilities Corporation could no. do sew
eral years ago"
Hamilton Not Consulted.
Although the Capital Traction Com.
pany is known to be included in tho
Baltimore capitalists plans, Presi-
dent George f. Hamilton said today
he Rad not been consulted with regard
70 the proposed merger. In WASH
tnFton financial circles II was said
today the Capital Traction Company
would not consider entering into the
proposed deal In any way unless GER
tain valuations which hnanciers place
on the holdings OF another public
service corporation are materially re-
THE Capital Traction Company was
never approached on the subject OF
the merger. so far as l am advised
said President Hamilton. 81 had not
heard that any such movement was
afoot until 1 read the article in The
Tines yesterday afternoon. or course
u ,re have ben rumors OF mergers for
years. but had not been advised OF
this present plan"
AT the District building II was sale
the baltimore capitalists would have 4
SHOW the Public Utilities Commission
that the proposed merger would be O
material benefit to the public ito ever
interest the commission" II the cap
itarsts cannot show In the first instanc,
that the public would get better servic,
or other benefits from the merger. tn,
commission will reject II on that basil
az the outset. according to well inform
cd persons at the District building.
) Against Fairchild Bill.
The. opposition Of the commission In
the Fsirchild bill providing for the con-
soffd ltion 1'thc Westminster Railway
and Electrfc Company and the Potomac
Eiectric Power Company Is an indica
uon OF its pre- baole attitude towards
the Tb erppS srs MERGE r,:n Of the railway
by the Fidelity Trust Company. Of Enl
timore. would embrace a consolidt tior
81 the Washington Railway and Electric
Company. the Potomac Electric Power
Company. the Capital Trection Com
pany, the Washington and Old Donin.
lon Railway, the Washington Utllitie.
Company, the Georgetown and Tenley'
town. the Washington and Rockville
and other subsidiaries of tire Washing
ton Railway and Electric Company.
Engineer Commiss oner KutZ. In ap
peafinC before the House District Com
mittee Mt the hearing on the Fairchild
bill last week, earnestly opposed th'
consolidation Of the Washington Rail
Potomac Electric Power Company a,
lnlmical to the public interest.
In any event. he urged that the pro
posed legislation be postponed until tn,
valuations are completed and the new
rates established.
Must Have Boards Sanction.
Public utilities are prohibited by tn,
public utilities law from reorganiza
ton. consolidation or acquisition o.
property for such purposes without tn,
consent of the commission. Paragraph
rs OF the law provides that mo publ,
utility shall issue any stocks, certificates
OF stock, bonds, or other evidences o
Indebtedness secured on Its property II
the District Of Columbia for the purpos,
OF any reorganization or consolidation
In excess of the total amount OF tn,
stocks, certificates OF stock, bonds Of
other evidences of Indebtedness ther
outstanding against the public utility 3,
reorganizing or consolidating, and n,
such public utility shall purchase Tn,
property Of any other public utility fo
the purpose Of effecting a consolida tioI
until the commission shall have deter
mined and set forth In writing tina
said consolidation will be In the pub
lie interest, nor until the commission
shall have approved in writing the termI
upon which the consolidation shall b,