The Washington herald., 1921-07-28
Calls w. r. E. Proposal
"More Stunts in High
Finance" ..e,
PLAN WOULDN'T AID
CAR CONSOLIDATION
Congress Should Order
Extension of c. T. Serv-
ice, Says Russell.

Contemplation OF a merger that
includes the Potomac Eiectra
Power Company will get nowhere
as far as a merger OF the street
car companies Is concerned, Samuel
Russell, Western utilities expert.
declared yesterday. r
1T simply cannot be done" RIDE
sell insisted. The merger that the
Washington Railway and Electric
Company desires is an amaigama-
tion with the Potomac Electric
Power Company. whereby the sI5.-
900. 900 stock Of the railway com
pany will be perpetuated by means
of a stock merger. and the $1,000
900 stock of the Potomac Electric
Power Company, which would BE-
worth little or nothing above par
on the market, will be inflated by
SIS, 100000 of common and preferred
stock OF the railroad company. The
outstanding bonds of the new con-
cern would be s2S.S5O.O 900. TO which
il is proposed to add sIO.OOO.0eg
more, bringing the total of bond OBJ
legation TO sSS,s5o.ooo. And to this
is TO be added s21 900. 600 of merged
capital stock obligation. making a
total of approximately $4,000 ,Ooe
of capital obligations 20 be borne
by a concern, the capital stock of
which can be purchased in the mar
ket at present quotations for Sc
| sS2,5oo.
Calls It stock Jobbery.
ANY sone who is so stupid as 20
believe that the unification and i'm
provement OF The street car service
in the District Of Columbia can be
promoted by any such stock lob
berry as this is being grievousfy
imposed upon. The men who adyo-
cate this scheme know better. They
are not interested in the Improve
ment of the street car service or
the unificatioD OF the street car
service and properties. They are
only Interested IN pulling on a few
more stunts in high finance
Neither Congress. nor sthe Public
Utilities Commission. nor the peo-
pie Of Washington should permit
themselves TO be deceived as TO the
I this scheme.
Russell said the proposal would
not contribute toward the CONSOLE
cation OF the street car companies
nor tend to reduce the rate OF fares.
should Order Extension,
The people of Washington an
parently do not want the WASH
ington Railway and Electric Com
pany's service" he said. -and the
extension of the serSice OF the
Capital Traction Company by leraI
direction throughout the District is
the only solution of the problem
The sooner measures are under
taken for this purpose. the sooner
will the people have relief.
1T has been asserted by traction
lawyers that Congress cannot force
merger of the street car comps-
nies and that a merger must be
arranged upon voluntary terms. ac-
ceptable TO both companies. This
may be true. Let us say that il is
true. But Congress can order an
extension of the Capital Traction
service over the tracks Of the
Washington Railway and Electric,
and Congress can. by the separa-
tion of the Potomac Electric Power
Company from the Washington
Railway and Electric, and the en-
forcement OF the FRANCHISE con-
tract as to fares, bring on q fore
closure and sale of the property and
franchise Of the Washington Rail-
way and Electric Company"
Would Have succumbes.
And it is imperative that Con-
gress take some such action" he
continued. IF there had been ne
Public Utilities Commission in the
District OF Columbia, the Washing
ton Railway and Electric would
long since have succumbed TO a re-
ceivership and foreclosure.
TT would appear that the Public
Utilities Commission has been in
tent only on protecting the WASH
ington Railway and Electric Com
pany from competition with the
Capital Traction Company, which
would not only seem to be illegal
but actually takes on an immoral
aspect from any standpoint OF the
public interests or welfare"
There seems TO be no reason why
the commission could not require
the Joint use Of the street car
tracks in the District as provided
in section of the Public Utilities
Act" he said. He added that this
would have taken care Of the war
emergency as well as furnishing q
solution of the present problem.