The Washington times., 1919-10-13

panes just as it would be absurd to have two telephone
companies, electric light companies gas companies
IF there is thing have learned about public utilities
in the last half century, it is that and the lessons have
been taught in every city in the country Such service
should be rendered by agency not because it is
profitable to that agency Though is but because the
public gets better service
Buf-THE GREATEST CARE AND SCRUTINY
MUST BE EXERCISED TO SEE HOW THAT MERGER
IS MADE.
Here are the things to paste in your hat and keep
stantly before you the merger proposition:
l. The Capital Traction Company is in very strong
position It doesn't need any help There is necessity
for merger on its part.
@ The Washington Railway and Electric Company has
number of improbable hnes it is hard up; its credit
not good it Was its track and equipment have not been
kept up the high standard Of the other company is in
bad with the public it has Watered stock than the
Capital Traction and relatively less value behind it
g. The people Of Washington need street railway
service at rush hours frequent service on
some lines extensions Of tracks in neighborhoods
Employees Of both companies must have better labor
conditions and hours and more pay the cost Of living
stays up.
s. The public must not be called upon to pay any more
for its transportation than it pays now and the years
pass they must get it for less
There IS one, very great very real danger in merger
It is this:
That the Washington Railway and Electric COMPANY
will seek to utilize the surplus value and earning capacity
Of the Capital Traction Company to give value its blue
sky securities, which represent in investment in the plant
EAACILY The COST OF THE PAPER ON WHICH
THEY WERE PRINTED.
The surplus value and earning capacity of the Capital
Traction should be used to improve the Of the Wash
ngOn Railway and Electric lines and carry improbable
lines until they begin to make money That (and reduc
ton in overhead expenses) is the great advantage in
merger at this time
But any merger scheme which would put Capital Trac
ton value into the watered stock of the Washington Rail
way and Electric should be taken down to the municipal
abattoir and hit in the head with an ak
There is another great danger It is this: That the
Capital Traction Company is in such strong independent
position that it might refuse to merge might drive such
hard bargain that the Washington Railway and Electric
owners would not be fairly treated In other words that
the Capital Traction Company might take advantage of the
financial plight of its competitor to absorb it for less than
its fair value.
merger on such basis must not be permitted for
II would be as improper for company to reap an unfair
advantage as for the other.
This merger must be a basis most unusual i'm mcrg-
ing public utility corporations: The public interest It is
no time for stock Juggling and promotion and if the owners
Of the respective companies wise they will not ATTEMPT
any such thing Thanks to the exhaustive work of the
Public Utilities Commission the last five years the affairs
OF these companies public property. The Commission
the people Of the District and Congress know can easily
ascertain the actual facts about them.
There will be excuse for merger that ignores them
Ii Congress does not feel like taking the big step of
government ownership and operation of the street railways
OF the District just now, it vastly improve conditions
by encouraging and giving direction to such merger as
have suggested.
1t is the only logical REMEDY that l know Of