Evening star., 1920-02-08
CITIZENS PREPARE
new MERGER BILL
FOR D. c. CAR LINES
Federation Would Merely
legaIize Union-Measure
! to Go to Congress.

The Federation of Citizens Asso-
Citations, at a meeting in the board
room of the District building last
night, decided to have introduced In
Congress a new bill of it's own to
bring about street car merger. In
preference to indorsing the two bills
already before Congress.
The federation's bill merely legal
izes d merger. leaving it up to the
railway companies to consolidate vol
unfairly.
The new bill was prepared by the
federation's committee on law and
legislation. of which Charles S. Shreve
is chairman. The committee has been
working on 1t since July. Steps will
be taken Immediately to have it in
troduced in Congress and referred to
the House District committee, now
holding hearings on the local street
car situation.
Other Bills Called "Hfcieus-"
In recommending that the fedora
tion have it's own bill introduced in
Congress, Mr.. Shreve characterized
as. vicious legislation" both the
Romjue bill and the bill prepared by
the District Commissioners.
The Romjue bill. Mr.. Shreve de
clared. is step toward government
ownership. Under it's provisions he
pointed out, street car deficits would
be made up from District funds in
the Treasury.
The bill sent to Congress by the
Commissioners authorizes a merger.
It also provides for abolition Of the
present form of taxing the street rail-
ways and taxing them in future at
the rate of so per cent on earnings
above 6 per cent return and IS
rnftl m
Mr.. Shreve said this is vicious legis-
1ation because it would penalize the
Capital Traction Company. which is
operating at profit. in order to as
sist the Washington Railway and
Electric Company.
Fears Long Litigation.
William NICK. Clayton told the
delegates of the federation that they
should lend their efforts toward bring
ing about a voluntary merger If
merger is forced on the companies, he
said, it may mean long litigation in
the courts, during which time the pub
lie would be deprived Of the benefits of
consolidation.
"The merger of the street railways"
sad Mr.. Clayton, should be q mar
rtSge OF love. in preference to one of
force A marriage of the two roads by
force will mean fight"
Mr.. Clayton also reminded the dele
gates that they should prepare to fight
q further increase in fare. as requested
by the Washington Railway and Elec-
tric Company, and on which the utilities
commission may hold hearing at any
time.
W. B. Westlake. president of the
federation, had read to the delegates
a statement from Commissioner
ERownlow. asking for the support of
the citizens for Community Service,
which is preparing for a drive for
s~t-
during the year.
Text Of Merger Bill.
The text of the federation's street
car merger bill follows:
BE it enacted by the Senate and
House of Representatives of the
United States of America in Congress
assembled. That the Capital Traction
Company. the Washington Railway
and Electric Company. the City and
the Georgetown and Tenleytown Rail-
way Company and any and all rail-
ways In the District of Columbia and
the Potomac Electric Power Com
pany. or any two or more of them.
may. and 1t shall be lawful for them
to. consolidate their properties into
one corporation for the ownership,
management and operation of their
properties under the following con-
ditions:
+tas Amy one Of such public utility
corporations may become the owner
and operator OF the consolidated
properties. subject, however, to the
approval of the Public Utilities Com
mission of the District of Columbus
of the terms and conditions Of such
consolidation:
"(b) That the corporation which is
TO become the owner and operator Of
the consolidated properties is hereby
authorized to issue stocks and bonds
for this purpose. in such proportion
rs the said Public Utilities Commits
sion may approve, provided that at
no time shall the bonds of the cor
poratioh at par. together with the
outstanding capital stock at par. ex-
ceeA!the fair value of the consoii-
conAolidat to be ascertainea by
the, said Public Utilities Commission.
81 Approval By Stockholders.
"(c) That no contract for consoli-
dAti0n shall take effect for such con-
solidation until the same shall have
been approved by the written con-
sent of the owners of three fourths
a special meeting called and held as
prb&efibed by law. and subject to the
approval in writing OF the said Pub
lie Utilities Commission. Provided
that in case any corporation enters
into any such contract it is hereby
name to any other corporate name
Of any of the consolidating COM
panies. or any other name not then
lawfully used by any existing cor
poration Incorporated or organized in
the said District. Such change may
be made by a certificate signed and
acknowledged by a majority of the
directors of such consolidated cor
poration, and approved by the Public
UTILITIES Commission and filed with
the7recorder of deeds for the Distric;
of Columbia, and like copy filed
with the Public Utilities Commissio on
Of the District of Columbia.
std) 1t is further provided that in
the event Of such consolidation the
accounts of the said Potomac Electric
Power Company shall at ali times Gl
q part of said consolida tion) be kept
separate and distinct from the gen.
.eral accounts of the said consolidated
corporation.
sec z. That public utility cor
porations under the jurisdiction OF
the said Public Utilities Commission
are hereby authorized to finance need,
ed extensions of their properties by
the issue of additional stock under
the same limitations now provided by
law for financing of such extensions
by the issue Of additional bonds. pro-
vided they shall first have obtained
the certificate of the said commits
sion showing authority from said
commission for such issue.
f'Sec. 3. That all laws and parts
Of laws inconsistent herewith or ir
c8nHict with this act are hereby re.
p3aled. That Congress hereby re.
serves the right to alter. amend oil
TSpeal this act or any part thereof
II. n. G. A. Secretaries Meet.