The Washington times., 1919-09-14
TIME RIPEFOR
GAR MERGER.
SYME AYERS
Traction Officials Study Plan
Submitted BY Corporation
Counsel.

ofseials OF the washington Rail-
way and Electric Company and the
I Capital Traction Company today are
studying with interest the merger
plan announced BY Conrad h Syr1e,
District Corporation Counsel who.
after I'VE years constant asso.iatioa
with the Public Utilities commisnon.
confidently believes he has found q
remedy 70 the local street ear situa-
tion- None Of the company oinciais
would express an opinion today.
Believing the time ripe at present
Tor the consolidation, and having On
view me dissenting opinions Of Com
missioner Gardiner on the railway
yaluations, Counsel Syme Offers .
plan which II carried out. would
tens the best IN the country.
Free Trunsfers Proviasa.
Embellishments Of a scent fara.
with six tickets for a quarter, and
the issuance OF free transfers, are
among the important sprovIsions made
IN Counsel Syme'E eo1solidatiOn plan.
Mr.. Syme states hat q board of
directors. with the public having an
4
should control the funds OF the com
pany, which would necessarily pre-
vent any extravagance on the COM
Dany's part.
Contending that . 5.eent fare and
free transfers would not net an In
come sufficient to run the company
on a paying basis Mr.. Syme suggests
that the company be guaranteed q
8 or per cent. return on the present
Il -
not bring this return 70 make up the
deneit BY obtainiug funds from ths
District goFernment treasury, which
turns back yearly TO tha United States
Treasury several million unozpendsd
dollars.
Distriet e supDoFt Exiea1soa.
Another important provision Is that
the extensions Of the eonpanies BE-
made ta the expense Of the District
government. and. that the District
pay for the upkeep of the present ex-
tensions.
His announced opinion fellows:
Il think Congress, the companies
and the eitisens ought to recognise
that q street railway systsm,fn wash
ington Is a public matter Of the high-
I est importance with which the gem
eral welfare OF the city 81 Intimately
connected. It really might be com
pared with the arteries and veins Of
the human body through which the
Very lie blood Of the city passes.
COmmon stOek ValneIess.
"A merger OF the two systems, bassd
upon the valuations Of the commits
sion and the present earning capaei-
/ ties OF the systems Is practicable now,
/ - II A..
/ mind approximate the allowance of
/ par for the Capital Traction stock.
and that IS or so for the preferred
stock Of the Washington Railway and
Electric and from 20 to 25 for The
| common stock.
The common stock has practically
| no value, but would probably have o
be allowed q value II q merger was %
be Effected believe . merger might
be effected either by the fOrmation
| by act OF Congress Of third company
to take over the other two upon some
agreed basis OF purchase. or the puF-
| chase by the Capital Traction Of the
Washington Railway and Electric
system. and IL this is done the ont
standing bonds Of the Washington
Railway and Electric could be re-
funded in bonds Of the consolidated
company at something near their
present market value and a saving On
interest charges Effected"
"In my judgment. IL merger g
effected. the public should be repre-
sented on the board OF directors: all
extensions OF the track and roadbed
should be made and owned By the
District; a fair return Of 6 per cent
should be allowed the stockholders
or the consolidated company based
"a
cents or six tickets for a quarter.
with universal transfers, should be
established. The company In which
the properties were consolidated
should be recognized as so essentially
public institution that It should be
renewed Of all taxation and annually,
after all operating expenses, main
tenance. fixed cha rges, depreciation,
and operating betterments have been
satisfied and a fair return paid to the
stockholders, any deficit should be
made up and paid out OF the funds OF
the District in the Treasury.
Public Representation Advocated.
THE fact that the public was rep
resented on the board OF directors
and the expenditures OF the company
largely regulated by the Public Util-
tues Commission would render il a.
suFed that no money was being i'm
properly or extrRvagantly used, and
that no one can reasonably object to
fair return to the stockholders
based upon the valuation OF the
property by public authority. This
return should probably not be more
than per cent, as il would be a
guaranteed return and as all extsn-
slons would be made and owned BY
the District the necessity OF the com
pany to borrow money would ba
greatly reduced"
Mr.. Syme said he thought the tina
would come when the plan OF Col.
kutz TO have authority to purchase ths
tracks and road bed would be Effected
by condemnation procedure II a bet
ter plan was not suggested, and the
duty OF the railroad company would
be confined TO the operation OF the