The Washington herald., 1921-08-11
viii Study Merger.

THE commercial and business associations OF
Washington have organized joint commit
tee for the specific purpose of studying the street
railway merger problem. This is a proposition
which they recognize OF vital Importance to the
city. 1t is fundamental in the spread of popua-
ton. in preventing congestion and a lower plane OF
living conditions in realty prices, in retail trade. in
wages availability of labor, in all construction
work. and in every phase Of city life. '>..
Every student of city planning recognizes intra-
city transportation of first importance, and all
agree that the lower the rate for such transporta-
ton the greater the resulting benefits to everyone
Merger of the two Washington companies can have
value and be OF benefit to all business men only as
it results in lower fares and in degree as fares arc
reduced. This is the fundamental on which all
study of this problem rest if it is to get any
where.
Reduction OF taxes. relief from street paving
and traffic police charges should come. But they
5hould only come after and not before merger, for
the reason that these savings to the companies Will
be added the taxes of all other property and
therefore. those who pay the taxes should get the
primary benefits in lower fares. and not the COM
panies in larger profits. Relief from such charges
also will not change the relative earnings OF the
companies nor their relative values. To make the
changes before will not make merger easier
They would only increase the price demand and so
pcnalize the people for accepting an extra tax
burden.
The Herald believes that the longer the COM
mittec studies this problem, with view TO reach
ing conclusion which will be best for Washington
as we'll as the companies the more certain it will
be approve the principle OF Senator Kings bill,
that of Representative Hammer. The trouble,
heretofore has been that the business interests Of
the city seemed to consider the question only
from the viewpoint of the w. X. & E., with the pur
of DIV far in
is worth, even actually cost
After months of study The Herald is satisfied
that there is but merger plan that is fair to the
people, just the railroads and best for all inter
in the District. insurng the greatest future
expansion and prosperity. This is the sale of the
w. X. & T.. railroad property to the Capital Trac-
ton Company for what IT is worth as street rail-
way going concern present basis This is
probably about the present bonded debt, which cx-
ceeds the fair valuation which rates OF fare arc
based
This would relieve tho Potomac Electric Power
Company OF the w. X. & i. railway incubus which
it has carried for long and until divorced, must
continue to carry. This would leave the p. L. P.
Co the property of the w. r. & L. stockholders.
1t is an electric service monopoly. 1t has the only
system OF electric distribution which the District
has or will have 1t will always be assured
in earning substantial dividends as is the Capital
Traction or the city's soundcst banks. 1t would
be OF the finest public utility properties in the
world. 1t would not only easily the required
per cent dividend the $8,5ooooo OF w. X. & L.
preferred stock, but, thc-basis OF its present net
earnings would put considerable actual value back
OF the W. r. & L. $6,5oo,ooo OF common stock
which now is but thin water. Certainly this is
something be devouty wished by the w. R. F.
stockholders, while its officers would remain where
they are as officers of the electric utility company
at satisfactory salaries.
The Herald is gratihed that this committee is
to undertake this work in the spirit of its
ment. We are most hopeful OF the result. The
committee has personal touch with all the men and
| interests involved. Their business, and that
! OF their organizations, has a stake, and this is
involved in the prosperity OF the rest OF u.s. just
! the plain folks to whom street fares arc very
| material item.