The Washington times., 1921-02-16
D.. c. AGAINST
MERGER PLAN
Utilities Commission Claims
Pepco Combine Would Re-
tard Car AmaIgamation.
URGES DEFEAT BY SENATE
Ham and Robert N. Harper Ask
Passage of Measure at
Capitol Hearing.

The Public Utilities Commission
today announced that it is absolute
ly opposed to the merger of the
Washington Railway and Electric
Company and the Potomac Electric
Power Company.
Col. Charles w. Kutz, chairman of
the commission, appeared before the
Senate District subcommittee, and
made the announcement in a dra-
matte way, after w. F. Ham, presi-
dent of the w. R. & E., and Col.
Robert N. Harper, representing the
security holders of the two COM
panies, had appeared before the
committee.
STATEMENT OF KUTZ.
The following is the text of the
statement made by Colonel Kutz:
'The Public Utilities Commission
IL the District of Columbia has the
honor to submit it's report on Senate
bill 4973, entitled, "A bill to amend the
provisions of an act relating to GER
| tain railway corporations, owning. or
operating street railways in the Dis
| trict of Columbia. approved June S,
1900 which was referred to 1t at your
| instance for Examination and report
! THE bill under consideration is
one of the features Of plan to
bring about a merger of the street
railway corporation operating in the
District of Columbia, concerning
which several bills have been intro
duced recently. and are now pend
ing before the Congress. The first
OF these bills, known as II. r. 11,753,
was introduced on January IA, 1920,
by Chairman Mapes, of the Commit
tee on the District of Columbia, at
the request Of the Commissioners of
said District. Extended hearings
were held on that bill before that
committee in January and February,
1920. Later bill known as H. r.
1872, was introduced by Congress
man Wood, which embodied many Of
the suggestions submitted at these
hearings, and which met with the
approval of the Public Utilities
Commission in many of its provi-
sions.
PROPOSES MERGER.
"The latter bill provided, first for
a merger of the two principal street
railway corporations, and then
authorized the merged corporations
to acquire the property and rights of
the Potomac Electric Power Company.
Consideration of this bill by the com
mittee on the District of Columbia OF
the House. appears to have resulted
in the iEtroduct ton Of bill in the
present session of Congress-, which is
identical with the bill on wnicn you
have requested this commission to re-
port.
"In the concluding paragraph OF
IA
Committee of the House states: This
bill certainly is prerequisite ster
towards the promotion of merger
of the Washington Railway and Elec.
trio Company with the Capital Trac.
tion Company. Therefore, the com
mittee earnestly expresses the wish
that the House pass this BILL
THE Public Utilities Commission
Is strongly of the opinion that the
absorption of the Potomac Electric
Power Company by the Washington
Railway and Electric Company will
not tend to force a merger of the
latter company with the Capital
Traction Company, but on the con-
trary, will tend to retard such a
merger.
w. II. AND e. OWNS STOCK.
THE Washington Railway and
Electric Company is now the owner
| of the entire stock OF the Potomac
Electric Power Company, and enjoys
all the earnings of that company. II
is believed that the absorption of the
power company by the Washington
Railway and Electric Company is ad-
vocated in the hope that the latter
company may eventually be author.
| lied to charge more for electric light
and power service than that service
Is worth, and thereby effect the diff.
ference between its earning power as
a street railway company and that OF
the Capital Traction Company.
"If this hope should be realized
the chances of a voluntary merger
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