The Washington herald., 1919-07-11
PLAN TO FORCE
W.R. &E.T0T TAKE
IN SUBSIDIARIES
Citizens VIII Propose Com
pulsory Merger to
Commission.
ALLOWED IN 1900 ACT
Federation Believes Consol-
idation Would Avert In
crease in Fares.

CHARGED with violation of the spirrt
of the merger act of 1900. the WASH
inrton Railway and Electric Company
will be forced by the Public Utilities
Commission to a merger with the
Georgetown and Tennallytown, Wash
ington Interurban, and City and Su-
burban subsidiary companies. II a
plan proposed by william Mex. Clay
ton is successful
The 1900 act, which permitted the
consolidation of the street car COM
panies here at that time. has not been
strictly adhered to. according 10 MT.
Clayton, inasmuch as the main COM
pany has not embraced into its Or
sanization the three subsidiary COM
panies. Were this merger already In
effect, the three companies would not
now be asking a 7-cent fare and that
all transfers. free or otherwise. be
discontinued. it is said.
Mr.. Clayton will present his plan to
the Federation of Citizens Associa-
tions at a meeting to be called soon.
Try to Interest Congress.
W. B. westlake, president of the
federation. announced yesterday That
the organization. of which he is the
head. is trying to interest Congress
in bringing about a merger OF the
two traction systems in the city. Let
tiers have been sent to every Senator
and Representative. asking their CO.
operation
The petitions which the Washington
Railway and Electric Company and
the three smaller companies sent the
Public Utilities Commission yesterday
are universal in demanding a straight
7-cent fare.
The subsidiary companies however,
differ from the parent company in
that they ask for the discontinuance
of all transfers. while the main COM
pany makes a plea for the retention
of the 2-cent transfer. Under the
former conditions, 14-cent fare and
even a 2s-cent faro would be possible
in Washington--------
The washington Railway and EIec-
trfc Company also offers an aiterna-
tive to its proposition. 1t asks for
an initial charge of 8 cents on both
Of the traction systems of the city
and the restoration Of the electric
light rate to 10 cents.
Ruling Expected Soon ..
A ruling on the Electric Light Com
pany's valuation will be handed down
by Justice Gould. OF the District Su-
preme Court, soon.
A suit filed in 1871 following the ac-
ton of the Public Utilities Commis-
sion ordered a reduction of cents
in the current electric rates. then
10 cents per kilowatt. The determin-
ing of the rate. however. is in the
hands of the Public Utilities Com
mission. the matter before the court
being only that of valuation.
No direct promise of better street
car service is embodied in the plea
of the Washington Railway and Elec-
trio Company. a possibility of ade-
ouate traction facilities is referred to.
In this connection President William
+ Ham wrote:
IF adequate relief were granted the
conpany's credit would be re-estab-
Iished and it could then purchase
additional cars and provide additional
facilities which will certainly he
reeded at an early date"
Reorgapi.ation Considered.
Bankers Of this city and elsewhere
are aware of the critical situation In
which the companies admit they are
involved Bankers who hold notes
Of a s.. 600 block of common stock
OF the Washington Railway and Elec-
tric Company met recently to con-
slider plans for the complete reor-
sanization of the company. The ac-
tion was hastened by the failure OF
the local car company to pay the
June dividends on the notes. All OF
these bankers. 1t Is said, are repre-
sentatives of out-of-town concerns.
While local bankers have so far de-
CIined to enter upon an agreement
with the outsiders the former met
Yesterday to give further considera-
ton to the question.
Mayor Hylan, of New York. gave
his opinion Of the proposed 2-cent
transfer system in the metropolis In
a letter to Corporation Counsel Burr
OF that city.
Hylan Sees Imposition.
In the letter. Mayor Hylan said:
Your contention that the Public
Service Commission or the court has
no right to allow a charge for trans
fers I believe is correct. and I hope
Won will take it to the highest court
in the state and let them determine
whether the people are to be i'm
posed upon by transit corporations"
No date has been set on the 7-cent
fare and 2-cent transfer hearing by
the Public Utilities Commission,
pending the valuations of the Wash
ington Railway and Electric and the
Capital Traction systems.
Commissioner Brownlow declined
to comment on the matter yesterday.
as the question had not been brought
to his attention. he said.