Evening star., 1921-10-12
DRASTIC
MERGER MEASURE
|Focht and Woods, Discussing
Failure of Old Bill, See
Demand for Action.

While members of Congress sener-
ally feel today that the street car
merger legislation is dead for this
session. Chairman Focht of the House
District committee and Representa-
tive Woods of. Virginia. original au-
thor of the bill. and leader of the
democratic proponents. feel that more
drastic legislation may be expected.
Chairman Focht claims to have the
support Of House Leader Mondell in
an effort to put through legislation
in some other form.
Either repeal of the public utilities
act or something equally drastic may
be expected said Representative
Focht. THE Public Utilities Commits
sion has failed utterly. We must
force merger and reduce fares. The
committee is determined on that"
said Mr.. Focht.
Representative Woods said he
gathered from the discussion OF. the
merger bill that the House believed
the Public Utilities Commission had
failed to provide remedies to work
out q solution, but in his opinion the
Public Utilities Commission is in the
best position to work out a solution.
Representative Woods. however
thinks that some measure carrying a
CLUB to force a merger may be brought
out
Would Keep Vital Features.
In my judgment, the committed
should take only some modiflcatio to
the bill recommitted yesterday" said
Representative Woods. 1T must re.
tain fundamental features Of the bill.
The subject has been carefully stud
led, not only by the present commit
tee and its subcommittee, but by the
subcommittee specially appointed un-
der the preceding Congress-. 1t has
also been studied by the Commission
ers of the District and others claim
ing to represent various civic organi-
cations of the District
IAN Of those who have given spe-
cial stduy to the street car problem
are, with minor differences, convinced
that the remedies embodied in the bin
are the proper solution. The only
alternative suggested by any member
OF the committee is to take over the
properties by the District government,
issuing guarantee of interest on
bonds for payment and municipal op-
Grafton.
I'm view of the fact that no gen.
eral merger statute exists in the Dis
authorize q merger, as is done. No OBJ
lection is made. as far as have learn
ed. to the merger provision from a
practical standpoint.
Power Company Status.
Opinion is at variance as to wheth
er the Potomac Electric Power Com
pany should be allowed to merge
with the parent company or with the
consolidated company. I think any
new bill should permit such merger,
but should contain more specific
provision than the present bill to
the effect that the Utilities Commits
OF the two classes Of service and
shall have clear authority to f1x rates
for each class of service, street railway
and electric power.
TN view OF the opposition that de.
veloped on the floor, any new bill that
is drawn will probably eliminate sec
ton s. which relieves the railway com
street improvements as distinguished
from street repairs. 1t will probably
be necessary to reduce the 2 per cent
provided in the bill so as to allow only
6 per cent before imposing a new re-
ceipt tax. At the present rate Of earn
ings: this will give good return to
the Capital Traction Company.
Seemingly, the discussion on the
floor developed lack Of confidence in
the Public Utilities Commission. The
present bill relies upon this agency
created by Congress for its proper ad-
TN my judgment. such a commission
appointed by the President. one mem
ber which is an Army engineer officer,
is much better qualified to handle the
public. utilities problem than any
committee of Congress. with. limited
time at it's disposal, can possibly do.
1T may be that the new bill will,
as suggested by some members on
the floor, endeavor to use the club
method to force merger. Such was
not the feature of the present bilL
We thought proper to remove all
legal restrictions to a merger, to bring
the earnings of the two companies
more nearly to the same level and to
hold out inducements to them both
for q voluntary merger, thus remov-
ing any question of delay incident to
court procedure"