Evening star., 1920-01-30
PUBLIC UTILITIES
COMMISSION HELD
CAUSE Of H|GHFARE
Former D. C. Commissioner
Gardner TeStifies Before
House D. C. Committee.
DOUBTS CONGRESS- RIGHT
TO COMPEL A MERGER
Advises Things Necessary to Be
Done to Bring About Street
Railway Union.

Done to Bring About Street
Railway Union.
Blame was placed on the Public
Utilities Commission for the increase
in street car fares In the District by
former Commissioner w. Gwynne
Gardiner. who testified today before
the House District committee on the
proposed bill to permit a merger OF
pubic utilities in the District.
Mr. Gardiner said that If the Wash
lngton Railway and Electric Company
had been allowed to use the earnings
! OF the Potomac Electric Power Com
pany as the fund of one big concern
and the Public Utilities Commission al
1 lowed an increase in charges to con-
sumers of electric power. the wash
! lngton Railway and Electric Company
would be 4 profitable concern and the
Capital Traction need not have been
allowed an increase in fares for
which they did not ask.
Cheaper for Householder.
Closely questioned by members of
the com mittee. especially by Repre-
sentative Johnson of Kentucky. the
ranking democrat, and by Chairman
Mapes. Mr. Gardiner estimated that
the increased cost on power TO "A
household would have been about so
cents a month. while the average
household has been compelled to pay
So a month increase in car fare.
Mr.. Gardiner questioned the right
of Congress to force a merger. but
he said the proper thing for Congress
to do and the most effective thing in
| the present circumstance was to
create conditions under which the
street railway companies would be-
come more favorably disposed to
! merge.
/ Things Necessary for Merger.
| In reply to questions by Representa-
| tive johnson the witness said that in
his mind two things. are necessary TO
bring about a merger
| First, to repeal what he termed the
| joker" in the enabling act of 1900.
which allowed the Washington Rail-
over the various suburban lines. He
said it was that act under which the
then existing railway got together and
created what he called the present
mess" The wording of this Joker" he
read into the record as follows: But
| in no event shall said railroad cor
poration be authorized to receive any
property or franchise Of said Potomac
Electric Power Company.
Second, Mr.. Gardiner said that the
Public Utilities Commission must au-
+, thorize increased rates On the electric
power sold by the Potomac Electric
| kfioWAtt instead OF the reduction from
! 10 to s which the commission ordered
two years ago, and which has been
held up by contest in court
Would Be Paying Concern.
Mr. Gardiner argued that il this
was done the Washington Railway
and Electric Company as one big
business organization. including the
Potomac Electric Power Company.
bodily as it really does by stock own
ership. would be made paying con-
Germ and it's earnings run TO or
per cent on actual value OF the prop
erty, the same as those of the Capital
Traction Company. In that event. he
said, the street car fares in the Dis
trict could be held at cents and
there would not be the necessity Tor
permitting the Capital Traction Com
pany to earn IA per cent. as ii now
does through allowing an increase OF
fare which the company did not need
and did not ask for.
Several members of the committee
argued strongly against the right TO
charge the users of one kind Of service
an increase in order that the street
railway fares for users of another kind
of service might be reduced. Repre-
sentative Burdick, republican. or
Rhode Island. said that it was like
big store selling two kinds OF goods
and charging a higher price on one
kind of goods in order that it might
sell the other goods at smaller price
Mr. Gardiner said that was exactly as
he saw the situation.
Although President Ham OF the
Washington Railway and Electric
Company had not finished his testi-
mony yesterday. he stepped aside to-
day to permit Mr.. Gardiner to testify.
Representative johnson of Kentucky
reserved the right to interrogate MIR.
Ham later regarding several points in
his testimony.
Takes Public's Viewpoint.
Mr. Gardiner said he appeared as
a citizen and wished to discuss the
proposed bill from the viewpoint OF
the public. He gave his opinion as
a lawyer that Congress has no power
to consolidate the roads. and offered
to prepare briefs for the committee
covering the legal phases If they
were desired. After being questioned
by Chairman Mapes and other mem
bers of the committee Mr.. Gardiner
admitted that il was his opinion that
Congress has only the two aiterna-
tiyes. of condemning the street car
companies. paying the cost or repro
ducing the properties as going con
Germs and operating them as govern
ment owned property. or OF allowing
them to continue as they are. he
thought that the Wisest course for
Congress by legislation. il legisla-
tion is needed. is to make il attrac-
tive for the security holders to merge
their roads.
Chairman Mapes questioned il
merger might not be brought about
under such a provision as is written
into the Cummins railroad bill. Mr..
~. rdiner said that the best lawyers,
even in Congress. are disagreed on
th;s point. He said he was perfectly
sure of one thing. that If Congress
condemned the road and undertook to
stimulate how the people should buy
tbare would be no investment in the
necessary corporation.
In reply to question by Representa-
tive Benson of Maryland. he said that
Congress had no right to authorize
one company to condemn the property
of the other as matter of public
welfare.
Closely Questions Mr. Gardiner.
While Mr.. Gardiner kept insisting
that Congress cannot force a merger.
Representative johnson of Kentucky
questioned him closely as to why not.
saving: Il am hunting a way"
Mr. Mapes also questioned Mr.. Gar
diner closely along the lines of Con-
rress repeating the franchise which al
ready exists, and then when the COM
nanies want a new franchise having
congress do business with them more
in the interests of the public" Mr..
Gardiner said that under such condi-
tions any act of Congress hostile 10
either of the roads would have a dis
astrous effect.
In arguing that the rates on electric
mower should be increased to permit
a decrease in street car fares rather
than another increase as now asked,
Mr. Gardiner said that the proposed
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