Evening star., 1919-10-17
Merger.

Inc com OluaLlOu Ol w dsuin6t 6tVH
two street railways into single sys
tenn is desirable in the public inter
est, if made on an equitable basis
and if the monopoly is under loca
control so that the management Is
responsive to local public sentiment
The movement for years has been
steadily toward such merger. Actual
consolidation has been prevented OIL
delayed in the past by the maneuvers
of each road to bring about merger
at a time most advantageous to itself
when its own stock was of maximum
market value and the other roads
stock at a minimum. The roads have
been unable to agree upon terms OF
merger.
Today the Washington Railway and
Electric stands most in need of merger
and finds itself in position where il
is apparently at the mercy of the
other company and can merge only
on terms involving sacrifice and loss
Merger st this time will benefit the
Washington Railway and Electric,
since it will solve the problem
which now almost defes solution of
meeting vastly. and compulsorily in
creased operating expenses while de,
nied effective specific increases OF
revenue. The long-haul improbable
passengers, largely increased in num-
bers. during the war period, are un-
willing to pay any extra fare for the
extra service. The short-haul passen-
gers intimate that they have been
paying for carrying the long haul pas
sengers long enough. The electric
light user protests against paying too
high rates for electricity to meet the
expense Of carrying ear-users. The
taxpayers say the burden is not for
them. Reasonable demands for bet
ter service, for mere men at con-
stantly increasing wages, for more
ears and better equipment, coupled
with denials of every effective means
Of increasing revenue to meet these
increasing expenses. tend to drive. the
Washington Railway and Electric into
merger on terms involving sacrifice
or into the involuntary Bankruptcy Of
q receiyership.
The Capital Traction Will also bene-
fit by merger, both Immediately,
through its apparent present ability
to dictate terms, and even more nota-
bly, in tbs future. It is cramped in
Development for lack of feeders.
Without merger the future may see it
distaneed in competition through the
development into urban paying sec
tions Of the suburban areas now served
at loss by the widespread traekage
Of the Washington Railway and Elec-
tric. It will also share through
merger IN cheap motive power through
participation in ownership Of the cleo
tric power company.
Merger under local control is clear
ly of benefit to the community. Such
consolidation has been the traditional
public policy of Washington. 1t re.
suited IN the creation of the Wash.
ington Railway and Electric Com
pany.
The difficult part of the work of
consolidating all of the Washington
railways into single system in the
public interes. has already been per-
formed by the Washington Railway
and Electric Company, which has
brought together in single system a
dozen roads by absorption and a dozen
more, consolidated in five separate
companies. that are controlled by the
Washington Railway and Electric
through stock ownership.
Most Of these many roads were un-
profitable, with diversified motive
power. and in varying stages of finan-
cial embarrassment. The new com.
pany consolidated weak, non paying,
broken.down, debt-laden lines into
one system, with the same motive
power, and that of rapid transit stand
ard, and with, as rule, one cheap fare
to the remotess part of the District.
Thus as an offset to its later cor
porate sins against the community, in
volving contempt of local public opin-
ion, the Washington Railway and
Electric was a public benefaetor in
reducing the number of Washington
railways to be consolidated into a
single system from one or two dozen
to two.
This railway consolidation of many
into one was able to operate and make
small earnings through economies
made possible by the merger, through
small wages (probably too smalD paid
to its employees, and through the help
of the electric light and power COM
pany, which it owned and which sup
piled it with cheap motive power and
made UP the loss by charging too high
rates for electricity to everybody else
1t has now come about that the con-
tribution by electric light users to run
unprofsable railway lines has been
reduced through lowering the price OF