The Washington times., 1916-03-19
ALITTLE MERCER, NOT A
PRECEDENT

Inc FuDllC OLlllCles Commission
has authorized the Washington and
Rockville Railway Company to buy
the Washington Interurban Railroad
Company's property, on q basis that
insures the squeezing Of all water
out of the latter property, and at
the same time makes II possible to
continue service on the Washington
Interurban line. The case was an
extraordinary one, decided after
consultation with both the commits
sion's lawyers and legislative lead
ers who helped frame the present
legislation for dealing with the pub
lie utilities. 1t cannot be regarded
as in any wise establishing a prece-
dent for a possible merger Of the
two great street railway systems Of
the city. e..
The Washington Interurban was
an independent line, that had gone
through bankruptcy. II was in Ut
terly hopeless financial condition.
AS an Independent proposition, it
could not continue service. There
would have been nothing less than
abandonment and ripping up Of its
tracks for junk, unless some
stronger interest could have been
induced to take it over ard continue
service. The community that, along
its eight miles of track, had be-
come dependent on it, could not be
abandoned in such cavalier manner.
1t would have inflicted a grave
hardship, and brought the law into
disrepute. There was necessity for
sane and intelligent Interpretation
and action; the public interest in
continuance Of service seemed clear
ly to be paramount.
This view was taken by all parties
concerned. The Washington and
Rockville road was the only cor
poration subsidiary to the Washing
ton Railway and Electric which, un-
der it's Maryland charter, could take
over the Washington Interurban
without clear violation Of the
anti-merger act of Congress. Ex-
.amination of the more or less con-
flicting provisions of the public
utilities act and the anti-merger act
developed a theory under which, as
a measure to conserve the larger
public interest, the consolidation
could be permitted; and this consid-
Grafton was allowed to rule. 1t was
required that the deal be placed on
a basis that should severely scale
down the capitalization of the
Washington Interurban, and all
parties agreed to this. The Wash
ington Railway and Electric seems
to have been far from enthusiastic
about assuming responsibility for
operating the Washington Suburban,
for it involved the serious posi-
bility of giving a public service at
an actual loss, perhaps for long
time. The permission to merge was
granted, and the railway interests
are acting in accordance with it,
altogether from a sense of duty ia
the community.
1t is only fair to say this, there
is no chance Of this ruling becom-
ing a basis for a later ruling au-
thorizing a general merger. The
law would not permit it; there is nc
great public exigency to warrant
the permission. The Public Utilities
Commission would not dream Of au'
thorizing such a merger pending the
valuation of all the properties in
volved, nor on any terms that
would continue overcapitalizatior
such as now exists. The two rail
way companies know this perfectly
we'll, and neither has intimated any
wish to consider a merger. A hear
ing on the subject would be of ne
significance or utility until there
shall be pending some proposition
in which the principals are con-
cerned; and it is quite impossible fol
such a proposition to get attention
so long as the great valuation worE
/ L..