Evening star., 1919-08-31
BY I. A. FLEMING.

BY L. n. FLBMIN4s
II there has been any encourage
ment in the local street railway sit
uation during the past week II has
been confined entirely to the growing
the two systems.
A large reduction in overhead
charges would be possible. Reroutins
OF cars would Increase the facilities
IN certain over-crowded sections OF
the city and divert traffo to less con-
gested districts.
In this sense the city would Sn-
ouestionab1y be in much better
position from the standpoint OF serv-
ice than ever before. Then too,
there Is 4 growing sentiment against
any zone system. DO successfully used
continental Europe-really the meas
ured service.
But a merger would not relieve the
citizens from the impost of higher
fares.
The Capital Traction Company would
not consider the taking over of .
property that was having trouble to
meet its fixed charges and Its pre-
ferred dividend ON the same rates
of fare that have resulted In the pres
ent complicated situation in which
the Washington Railway and Electric
Company finds itself.
Moreover. the demands for service"
are insistent and q very general bet
terment Of the tracks Of both systems,
together with more cars, would have
to be considered.
The public at large had small
when he made his memorable and
costly fight against the demands Of
the employees Of the WashinEton Rail-
way and Electric Company, and ap-
proved the action Of the directors
after Mr. Kings resisnation in Yield
collective bargaining" . term that
has very broad meaning In labor
circles.
Knocking at the Doors.
But the men are knocking at the
doors for another bargaining, and
there can be small doubt that the
Capital Traction employees will see
the light and the right and also want
to do little collectively to better
themselves just as soon a. existing
arrangements are ended-its natural
Nor Is 1t likely that Capital Trac-
fion Company will in any way Yield
Its rights to non-interested parties in
the negotiations with merger intent,
as suggested in some Of the proposed
measures for a unihcation.
The company holds the upper hand
and will continue to exercise its
rights. unquestionably, with due re-
own shareholders, many Of whom
have followed its fortunes since or
ganixation.
There rs necessity for consideration
OF the Potomac Electric Power Com
pany in connection with any mercer
OF the, system. 1t would unquestion-
ably be required to operate the COM
bined system. although the plant of
the Capital Traction Company is up
to date and modern. The Potomac
Electric Power Company furnishes
current to the Washington. Baltimore
and Annapolis Railway Company and
the Washington-Virgini Railway
Company.
Should Develop Power.
One of the very largest increases in
operating costs of Industrial plants,
street car operation. etc, is the ad-
vance in soft coal. Time was when
manufacturers could not afford the
second handling necessary to store
soft eoal-its cost was relatively in
considerable compared with the cost
today.
With Great Falls within relatively
few miles of Washington, with devel-
opment the matter of a few million
dollars and the returns big, it would
seem as if this great venture might
be Undertaken with good results at
this time. when money is so plentiful
Valuations Of the properties of the
two companies will not be DELAYED
much longer. and on these figures de-
Ponds largely the future Of the prop
critics.
Sentiment Slightly Better.
Sentiment in security circles is
b0t
the feeling of depression industriaIly
that prevailed ten days ago. The
Plumb plan rather stunned for a few
hours. and the persistent strikes and
strike talk here. there and every
where WAS calculated to give bust
ness the shivers
Moderated conditions are to the bet
ter liking of the business world, and
hopes for saner perception of duty
found quick response in the stock
market. reflector in the most direct
sense of the pulse of business.
Sterling Exchange Soft.
The prevailing weakness In sterling
exchange continues. and further re-
ceesions in price are predicted. 1t Is
also true with regard to other for
eign exchange.
nations of the worlds indebtedness
to US. and further calls attention to
the fact that these nations have so
little to sell US in liquidation of our
teriai that the need for further
credits that our Industrial activity
may continue is imperative Our
chtef debtors are among the allied
nations other than Japan and China.
Making Investments.
Many men of means and corpora
ticns, too. are making investments
in Eagiish and French exchange, tax
clines and counting on q recovery as
a matter OF probability before very
long.
They expect that the credits that
interest of our export trade will be
followed by recovery in exchange
and expect the credits to be arranged
for soon.
Then. too. there is a good demand
for exchange from the thousands Of
emigrants returning to their native
lands rich with the proceeds of war
work and anxious to locate and be
OF aid to relatives and friends in
devastated and stricken districtA
Their money goes further on this side
than ever before, in that they can
buy q pound sterling for 1924. Sol
francs Tor dollar instead Of the
usual and fraction and S.57 lire
MARKS are almost given away
Bank of England Interest.
The Bank Of England has reduced
the rate of interest paid on foreign
hafances from ~ per cent, which has
prevailed since 1917. to per cent.
Loans on Stocks and Bonds,
Loans on stocks and bonds, as re-
ported by the Federal Reserve Board,