The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-05-03
D. c. TRACTION
SEIZURE URGED
Condemnation Proceedings Held
Way to Bring Merger II Com.
promise Is Not Reached.

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Condemnation proceedings lead
ing to Government ownership Of
all transportation lines within the
/. District of Columbia doomed today
rs the only alternative to be Of
/. if they fail to consolidate under
! the provisions Of the bill now being
/ drafted by the District sub-conf-
mittee.
Chairman Focht, of the House Dis
trict Committee, announced today that
he is preparing to introduce q meas
I ure to separate the Public Utilities
Commission from the District Com
missioners. The bill will provide that
the commission be completely sepa-
rate body.
MEETS FOR FIRST TIME.
The committee met for the frst time
[ today, and Immediately began re-
view of all hearings and investiga-
tions made by previous committees
, on the merger question.
Congressman James T. Woods, OF
Virginia, former chairman OF the mer-
! ger committee, presented a lensthy
review of all the legislation which
has been considered by the different
committees in the past.
After a thorough investigation, the
( old committee concluded that the
| only remedy of the proposed merger
lay in placing the burden on the conf
pany best prepared to bear 1t. That
company Is the Capital Traction Com
pany." said Mr.. Woods.
CITES wATERED STOCK.
"Originally the Washington Rail-
way and Electric Company was pure
! ly a speculative venture. and it's
Capitalization is laden with great
deal of watered stock. Conditions at
I present. however, are different, and II
is under a very conservative man
,agement. But, obviously. II would be
; unfair to penalize the Capital Trac-
tion Company for it's good. conserva-
tive management over long period
OF years"
Mr.. Woods called attention to the
urgency of merger because OF the
early maturity of some Of the Wash
ihgton Railway and Electric Com
pany's bonds.
This, he said will necessitate refi-
nancing of the company at an early
date.
URGES SCENT FARE MANDATE.
e. Congressman william c. Hammer OF
North Carolina presented motion
Just at the conclusion of this morn
ing's meeting asking that clause be
inserted in the merger bill making
b-cent fare within the District OF Co
lumbia mandatory on the merged
1--WE are working for the best in
terests Of the people. and that is the
only way that the people can be
served best" he said.
The new bill. Mr.. Woods said,
should provide ways and means for
a merger. to be agreed to by seventy
FIVE per cent of the stockholders OF
both companies. Such an agreement.
Mr.. Woods said, should be mandatory
on the companies. He advocated. how
ever, that the way be left open for
q compromise agreement. that might
be worked out by the management
OF the two corporations.
At this point Congressman Stanley
n. Kunz of Illinois took the moor and
advocated Government ownership as
the alternative to be imposed II the
companies fail to agree on merger
plans. He called attention to the
valuable power site on the upper Po-
tomac, now owned by the people to
be Of sufficient value to warrant the
condemnation and taking over OF the
transportation companies.
Mr.. Woods pointed out that any
action looking to the issue OF bonds
by the District Of Columbia would
be frewned upon by the Secretary OF
the Treasury and by leaders in both
houses OF Congress.
He said that for the government
to take over the transportation sys-
tenn OF the District would necessi-
tate issuance Of such bonds. Various
members OF the committee. however,
in discussing the government owner
ship question, pointed out that II 1t
did become necessary, plan could no
doubt be worked out which would
meet with the approval of the .td-
ministration.
Upon the motion of Congressman
zihlman Of Maryland, chairman of the
subcommittee. the first step to be
taken in determining plan for mer-
ger, will be to call upon the manage
ment of both traction companies fer
complete lists Of stockholders in each
company.