Evening star., 1921-02-16
HAM URGES, KUTz
OPPOSES, MERGING
OF POWER PLANT
Head of w. R. & E. Presses
Proposal at Hearing Be-
fore Senate Committee.
COLONEL FAV0RS TAKING
POTOMAC COMPANY LATER
With Conrad Syme, Chairman OF
Utilities Board Believes It Should
Follow Car Line Union.

Utilities Board Believes 1t Snoulo
Follow Car Line Union.
a merger of the Washington Rail-
way and Electric Company and OF the
Potomac Electric Power Company as
the first step toward the merger OF
the two street car companies operat-
ing in the District was strongly urged
before the Senate District subcom-
mittee today by w. F. Ham, president
Of the Washington Railway and Elec-
tric Company and also of the power
company.
His proposal was backed by Robert
N Harper, president OF the Bankers
Association Of the District, ana otheF
witnesses.
The proposed merger of the WASH
ington Railway and Electric Company
and the power company was JUST as
strongly opposed by Col kutZ, Y. ..
A., chairman of the Public Ut1iltles
Commission of the District. and Con-
rad Syme, formerly corporation coun-
sci and now employed by the Public
Utilities Commission as counsel IN
pending litigation over the valuation
of the public utilities Of the Distrlct.
See Increase In Cost.
They insisted that instead Of pro-
noting an eventual merger OF the two
street car companies OF the D1str1ct,
1.-The proposed merger OF the power
company and the Washington Railway
and Electric Company would be step
backward.
Col. Kutz and Mr. Syme also told the
committee that in their opinion to
permit the merger would be to IN
crease the cost OF electricity TO the
consumers of the District, because the
burden of operating the Washington
Railway and Electric Company would
in part be transferred to the power
company:
Both sides, however, united in the
hope that a merger of the two street
railways may & be orqush. mt dnGes ,Dferests as
of the public. In the event OF such a
merger. Col. Kutz said. the power COM
many could then be merged with ad-
vapfage with the consolidated street
railway sysfeffl = -
Reads Conniegiea Report.
Col. Kutz Rad te the committee a
Unanimous report ~ the Public Utti-
titles Commission. which 10 composed
OF the District Commissioners, op-
posing the proposed merger OF the
power company and the Washington
Railway and Electric Company. Their
report was made on the France Dill
authorizing the merger. and now un-
der consideration by the Senate COM
mittee-
In the report the Public Utilities
Commission said that 1t was strongly
Of the opinion that the merger. instead
of being a step toward q merger OF
the street car companies. would as a
matter of fact retard such merger.
The commissions also expressed the
belief that the Washington Railway
and Electric Company and the Po-
tomac Electric Power Company are
seeking the merger so as to warrant
Tells Of Development.
II the Senate committee should de-
termine to report the France bill. the
adopted providing for a merger of
the two street railway companies.
Mr.. Ham was the first witness. He
described the development of the
Company. and told of it's ownership of
all the stock OF the Potomac Electric
Power Company. An act of Congress
in 1900. however, while permitting the
ownership of this stock. prevents an
actual merger of the two companies,
he said.
In support of the proposed merger
Mr. Ham urged that additional financ-
ing of the Potomac Electric Power
Company was necessary, due to the
tremendous increase in the amount
of service demanded Of it.
Gives View OF FinaneinE.
This financing. he said. could be
consolidation of the company with the
w. r. & E. Company, because the
power company now has issued three
mortgage bond issues, and a fourth
would be practically unmarketable.
BY q merger, however, it would be
4
secured by the property of the w. r.
& z. Company.
Mr. Ham insisted that it would be
just as easy for the Public Utilities
commission to fix reasonable rates for
street car service and for light under
the merger as it is now. He pointed
out that the business Of the power
company had developed from 24,000,-
eco kilowatt hours in 1900 to 1O2, ,OOO.-
600 kilowatt hours in 1920, and that
in the next three years it would be
necessary to expend some s., 900, 900
in further developing the lighting and
power system. He said that 1T had
been necessary for the two companies
to enter into contractural relations,
because the power company furnishes
power to the w. r. & E. Company.
These relations, he said, had been
criticised by the Public Utilities Com
mission. II the merger is allowed
these criticisms naturally would dis
appear.
Believes People Want Merger.
Mr.. Ham said that he was convinced
that the public earnestly desired a mer-
ger of the Capital Traction Company
Commission to fix reasonable rates for
trio Company. Unless a merger of the
Potomac Electric Power Company and
the Washington Railway and Electric
Company Is permitted, he said, he did
not believe the Capital Traction Com
pany would entertain a proposal for a
merger with the Washington Railway
and Electric Company.
and the Washington Railway and Elec.
Pomerene of Ohio. Mr.. Ham said he be-
Heved a merger OF the two street car
companies would result in a reduction
of fares. He pointed out that the Cap
ital TRACTION Company is now earning
In reply to a question by Senator
erty as fixed by the Public Utilities
Commission. and the Washington Rail
way and Electric Company is earning
less than per cent on a similar val
uation- A merger. he said. would nat
urally bring about a reduction in fares.
Mr.. Ham also said he believes the
enactment of legislation changing the
method of taxation Of the street car
companies would tend to bring about a
merger.
Mr. Harper's Statement.
Mr.. Harper said that he believed a
merger between the power company
and the Washington Railway and
Electric Company was desirable from