Evening star., 1920-02-17
BLAMES UTILITIES
BOARD FOR STREET
CAR PROBLEM HERE
Mr.. Hamilton, Head of Cap
itaI Traction Company, Be-
fore D. C. Committee.
HOLDS CONGRESS WANTED
POOLING OF EARNINGS
Believes Aiding w. R. & E. With
Pc. P. Cash Would Have Pre-
vented Present Difficulties.

vented Present Difficulties.
Blame for the street railway prob
lem in Washington and for the imam
lial difficulties of the Washington
Railway and Electric Company was
placed upon the Public Utilities Com
mission today by George E. Hamilton
president of the Capital Traction Com l.
pany, testifying before the House DIS
trict committee on the District COM
mission bill designed to bring about a
merger of the street railway systems
here.
Questioned by Representatives
Woods of Virginia and johnson OF
Kentucky. Mr.. Hamilton said that ne
believed the intention OF Consress
was that the Potomac Electric POWER
Company and the Washington Raii,
way and Electric Company should
pool their earnings and develop as one
big system for promoting the pest
service to the public and deveiopment
of the city. He said that Congress
had directly linked these two COM
panies together.
He pointed out that in the begin
ming the power company was WEAK
while at least two lines in the WASH
ington Railway and Electric system
were strong nudHCfdiiy- nv ~
company had developed because II
had the cooperation and credit OF
the Washington Railway and Electric
Company. he said.
Urges One Coordinate Concern.
TT the washington Railway and
Electric Company were allowed to use
the earnings of the Potomac Electro
Power Company, all of whose stock II
owns. in building up one CO. ordinateo
concern, Mr.. Hamilton said he 0eleVes
the Washington Railway and Electric
Company would not now De IN IMAM
Throughout the hearings emphasis
has been laid on the fact that the
Public Utilities Commission has Ior-
hidden the Washington Railway ana
Electric Company to use tne % eafnimgs mass
pany for street railway expenses. ana
has ordered the rate for power to be
reduced from 10 to 8 cents per kiio-
wat hour, with an appeal by the COM
pany still pending in the courts.
Mr.. Hamilton contended that the
usual rule that people using one kind
Of service or one commodity shall not
be forced to pay for the upkeep OF an
other kind Of service does not hold IN
this case. He said that in the days Of
drew support from the street railway
company just as much as the street
railway company WOULD draw support
from the power company At this time
but for the prohibition Of the Public
Utilities Commission.
Sees Increase ~ Unjust.
When members Of the committee,
especially Representative Johnson.
questioned whether 1t was not clear
case that those who are riding on the
Capital Traction Company and paying
IN n
porting the w. r. and e. Co., Mr.
Hamilton replied that he did not think
it was just to the public that the Cap
ital Traction Company had been given
an increased rate.
Conviction that the Washington
Railway and Electric Company. under
proper direction by the Public Utili-
ties Commission and with aid from
Congress in the present emergency,
will become q successful street rail-
way system, ultimately Of great bene-
At to the community, as it has been
in the past, was expressed by Mr..
Hamilton.
He said that t>So outstanding sug-
Restions have been developed during
the hearings. One Is that a merger
of the street railways is desirable.
The other is that there is power in
Congress to compel a merger.
IF Congress has the power to so
compel. Congress has never attempted
to exercise it. but has repeatedly ad-
mitted that it had not the power,
said Mr.. Hamilton.
He contended that there is nothing
in the court record which suggests
the doctrines that any government
through any agency could compel a
man to take his property which is
under safe guardianship and put it
under some other guardianship.
In every case which involves q
merger Congress can authorize the
merger for any organization author
lied by Congress to exist. but 1t can
not merge unless Congress does con-
sent. Congress may authorize or en-
courage a merger. he said, but can't
compel one. Representative johnson
interjected the comment that this is
comparable to the marriage relation.
Questions Merger Authority.
Mr.. Hamilton quoted from the de-
hate between Senators Cummins and
Hitchcock on the railroad reorganiza-
ton bill in the Senate to show that
there is no authority in Congress to
compel public service corporations to
merge.
REPRESENTATIVE johnson questioned
whether there is any distinction be-
tween the right of Congress to take
over private property and to take
over that which is already dedicated
q
take one street car company and turn
IL over to the other.
Mr Hamilton said that the gov
ernment at all times has the right to
condemn private property for the pub
lie benent, but that in such case the
government must mako provision for
q inst payment of the property rights
If the individuals who have invested.
Representative johnson questioned
whether Congress can give one street
car line the right to condemn and
take over the other by paving fair
the value of the business. including
eWr Hamilton said that Congress
certainly has the right to condemn
and could delegate one street car
system to act as its agent in taking
Congress could not compel the street
cor line to accept the obligation of
taking over and paying for the other
i;ne unless the first line was willing
to assume the burden.
-omld be wise legislation and that it
Would not be useful or beneficial. Mr..
Gomilon said he does not believe that
the conditions in Washington are
such as to lead Congress to exercise
at this point that he said he believed
Congress- in the enabling act Of 1900.
s,'hich gave birth to the w. r. & E.
20 intended that the street car
~. and the p E. p. Co. should be
daveloped as one big system.
Points Of Law Argued.
Most of the hearing today was con.
aumed by Mr.. Hamilton in citing the
law and precedents to show that pri-
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