The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-05-15
TO
FORCEMERGER
Failure Of Railway Companies
to Agree on Consolidation
Creates New Issue.

Failure Of negotiations looking
to . traction merger viii produce
n prompt reaction In the Senate.
There Is little doubt that lcgis-
lation will be introduced providing
for compulsory merger or for
Federal ownership II the effort to
effect q voluntary one fals-
MAY FORCE MERGER-
Senator Bali, chairman of the Dis
trict subcommittee on public utilities.
is, avowediy In favor Of . consoiida-
ton OF the two traction companies at
the earliest possible moment. and has
freely EXPRESSED the desire TO CO.
operate in the negotiations.
No fntimation that, the two SOM
panies would fail to resch an agree.
ment reached Congress until the pass
few days. and members In touch with
the situation preferred to keep their
silence until the actual facts became
public. As soon 81 the Capital Trae-
ton Company and the washington
Railway and Electric Company an
nounce that they cannot reach
working basis for a merger program.
there lis no question that ronstruc-
tive program In both tine SENATE and
the House will be initiated.
RECALL HAMS STAND.
Members of the Senate District
committee yesterday recalled the fart
that. during the consideration OF ire
France Gould bill authorizing a mcr-
ger of the washington Railway and
Electric Company and the Potomsc
Electric Power Company two months
ago, william r. Ham. president OF ooth
companies. declared that the request
to q traction merger. and held out
glowing promises that the latter con-
soiidation probably would oe .etfected
without great difficulty.
81 know one thing" said Mr. Ham.
land that 10, the Capital TRACTION
Company will not SO much 81 look at
us unless we can come to them Win
the Potomac Electric Powe. COMPANY
as part OF our corporation. But with
this company. I feel sure that most
of the difficulties in the way OF
merger will be removed.
TAKEN SHARPLY TO TASK.
At the hearing the merger Of the
Pepco and the w. r. Il. Co. was
opposed by the District Commission
ers, whose spokesman was Colonei
Kutz, Engineer Commissioner. Col
oneI Kutz said that the Board OF
Commissioners tett btat She W.
Il. Cop T. p. Co. merger was step
away from 4 traction consolidation,
rather than toward It.. For enter
tanning such a view he was taken
sharply to task by Senator Pomerene
and other members of the Senate
District Committee. Colonel Kutz
held his ground. but the committee
OVERRIDE his objection by reporting
the bill favorably, relying upon Ar.
Hams pledges of good faith.
No action on the measure WAs
taken by the Senate at that time,
but 1t has been reintroduced at the
present session, and Is now on the
Senate calendar. Unlue-Ascnably the
deadlock reached in the traction
negotiations will block any attempt
to force the measure through at this
session.
TO CANVAS SITUATION.
There is no specific traction mer-
ger legislation pending before the
District Committee of the Senate at
the present time. Senator Wesley
Jones OF Washington, however. has
reintroduced the Commissioners bill
to eQualixe the earnings of the two
companies by, taxing them in ratio
to their dividends. Within the next
week, however, Senator Ball Will
make a canvas of the entire local
traction situation. with view to
speedv action