Evening star., 1920-01-09
MERGER OF CAR LINES
ASKED BY COMMISSIONERS
I'm BILL SENT TOCONGRESS
CONTINUED from First Page.) }

TENS will not be equal, for, while one
system may be able to finance needed
extensions. it is anticipated the other
companies may find great dlflculty IN
financing extensions and bettermentS
that are constantly needed to meet
the increasing demands for service.
To meet this condition 1t IS proposed
to set aside in the Treasury as a sep
arate fund the tax to be collected un-
der the proposed Legislation and make
it available for needed extensions of
track. for the purchase of additional
street cars or for loans to companies
unable to obtain additional capital on
reasonable terms.
THE establishment of such a fund
as proposed would permit the finan-
cling Of necessary extensions and I'M
proVementS under conditions where
by the public would not have to bear
the burdens of ruiuous discounts i'm
posed upon borrowing companies of
weak credit. and it also would place
the public in a most advantageous
position with respect TO the future
development of the street railway
system of the city.
Section of the bill provides for
the relief of the street railway sys-
TENS from the requirement of law
that they pay the salaries of street
railway crossing policemen.
Public Pays Ultimately.
''While the street car companies. and
ultimately the street car riders, must
pay under existing law the entire cost
of directing traffic at street car inter
sections. the duties of these crossing
policemen include the direction OF
all vehicular traffic. In the opinion OF the
Commissioners this burden should be
placed upon the community as Whole
!, nd not upon that portion of the COM
"a unity that is compelled to make use
~ he street cars. The loss to the COM
MN ity due to the abolition of this in
iyreA form of taxation Will be more
H., n offset by the increase brought
'Iput by the change in the form OF
IirecI t axation outlined above.
.T,o,,g since these policemen have
,ean ,Jat.ad under the Jurisdiction Of
he co pml,ssiouers, and in every re-
meet tt.ey atand on the same footing
= do m er,bers of the metropolitan
,o,;oe ,o oo dn, IL, nr.ment, except that, they are
20 ia bv me istre ct railway companies.
"Section g makes lawful the merger
,f ntiIities in, the District of Column
,ia nerformins like services to the
community. Th Commissioners are
irmly of the ,opi, non ina. idea, S,ie in ne
S;strict Of Colu1n bia until all the
companies are brA ught under one
,ead. either through, single ownership \, p p
" through single. opef alton. 10 hlahe
his possible the b in autnorlZes d
merger of the, stree = rallWay toiri-
oanieS on the basis of NE HaIua ~ 10
,ound by the Public Uti 1lLles SoalllIs-
sion under the law crea, any tis,I 'oia'- i
mission. This legislati on vii aiSo .So
permit the complete mt rseI ol tile
.wo gas companies. Thes o'lnp..ni
are now practically in COZ ofhoii o>"
ership, but are handicapped by tne re-
luirement of law that each maj alii'ain
/ separate corporate eXistel ice.
Amendment of Utilities LAW.
Section is, in effect. an an 'ero- er
ment of the general public nth 'les
law, which would permit the CO III
mission to authorize the financing VI
future extensions by authorizing tn
issue of stock as well as of bonds.
an authority which the commission n
was intended to be given it
by Congress in the first place. Ger
tainly a proportion of the capital re-
quired in the future by the several
utilities should he procured from the
sale of stock. since to go on pillng
up the bonded Indebtedness cannot be
under the principles OF
sound business practice.
THE Commissioners believe. there
fore. that if the accompanying bill
be enacted the Public Utilities Com
mission will ..be greatly adva.ntaged
ip it's efforts to regulate the street
railway transportation service of the
District of Columbia in fairness alike
to the companies and to the public
and without imposing upon the latter
any undue burden"