The Washington herald., 1921-07-09

strong dissenting minority, to substitute
the street railway merger bill of Represen-
tative Woods for the municipal ownership bill Of
Representative Keller. Mr.. Woods is entirely hon
est and sincere in the support of ,his measure He
merely has the wrong point of view; he looks from
the wrong direction. His conviction is that capital
and those who represent capital also represent the in
teigence and the capacity which should control this
country's affairs
1t is natural, indeed inevitable, that in all good
faith, he should favor the interests of corporation
rather thzn those of the common people who pay the
fares His bill has two radical defects from the
standpoint of the users of street railways and of
public interests. 1t would make public utilities
providing wholly distinct services into corpora
ton. 1t empowers the w. R.'& E., street railway
utility, to completely absorb the p E. p, electric
light and power utility
As his bill rectes: "The plants and works of
said companies severaily, shall be consolidated as
one enterprise Tone utility and the said Washing
ton Railway and Electric Company, the said
merged and consolidated corporation, shall be en-
titled reasonable return at all times and, for
period Of three years beginning with the date of the
approval of this act, to return of per cent per
snnum the fair value of the consolidated cor
poraton used and useful for street railway and cleo
trio leower operation within the District of Column
bia"
Public Utilities Commission to regulate rates, be-
of little value since this absorption
would make street railway and electric service one
utility, one in accounting revenues, disbursements,
etc. The commission could not separate the two
services for regulation. And this is exactly what
the w. R. & E, wants; it has frankly said so, it
will enable it to make its electric service carry the
gross overcapalization of its street railway service
AS the w. R. & E. owns the stock of the P.
~. a.. L..
no effect financially. This but makes the two COM
pIetely one. 1t is automatic that two public
utility services should be incorporated to be
owned, operated and controlled a single entity.
This makes regulation farce Every public utility
service should have at least distinct and separate
corporate identity.
The second bad feature of the bill is the pledge,
in advance, that the two railway systems
are merged they shall be relieved of street paving,
of the traffic police charge, and given very low
rate of taxation. The Herald advocates these
changes but only that the people of the District of
Columbia who will have to meet in taxes each of
these items taken from the street railway charges,
may have the direct benefits in lower fares
Mr.. Woods bill would deprive them of this
compensation in lower fares 1t would bestow this
relief upon the street railways as gift at the total
expense of the taxpayers. 1t gives this relief in
advance basis for merger with the assurance of
the president OF the w. K. & T. that 1t would not
reduce fares. Why not? Simply because Congress
would give its recorded permission for merger on
the basis of this lessenng of operating charges al
lowing a vastly higher merged valuation. 1t is
open permission for overcapitslization and ad-
vance approval of any merger capitalization basis
the two companies may reach.
The companies should be forced to merge on
actual present value provided by the King or
Hammer bills and without gratuities. They should
then have to come to Congress for confirmation of
their bargain and ask for the other relief a
basis of still greater reduction of fares than
merger will bring This is the sensible, honest way
il the interests of the people of the District
be considered at all.
What the Woods bill gives to the railways
will amount to saving to them of many hundreds
of thousands of dollars year. This he would take
from the taxpayers without the slightest prospect of
any return in lower fares. 1t is manesty unfair
that it is amazing any Congressman support it.
None would in his city district. Is the Dis
trict of Columbia so different? Is it curse to be
under the direct control of Congress-? Is no Con-
gresham to be responsible anywhere for his vote
on District of Columbia affairs? The Herald cam
not vet believe this Congress is that kind.
Fifty dollars for ticket and $50 to SIoo for