The Washington herald., 1921-06-25
Declares Company Must
Soon Negotiate S10,-
100000 Loan.
SAYS SOME LINES
OPERATE ATLOSS
Thinks Only Benefit of
Consolidation Void Be
Rerouting Cars.

The pubic Will receive H11io - '
benefit from a merger of the WASH
inzton Railway and Electric Com
pany with the Potomac Electric
Power Company under the provisions
of the Ball bill, according to the
testimony of william F. Ham. presi-
dent of these tw ocompanies. who
appeared before the subcommittee
yesterday.
In answering the question why
the Potomac Electric Power Com
pany and the Washington Railway
and Electric Company desired to
consolidate Ham explained that it
would soon be necessary to negotiate
a loan of $4,000. 900. and as this
would make the fourth mortgage, it
was deemed to be highly improbable
that a loan could be financed ad-
vantageously. II a merger of the
two companies could be effected 1t
would greatly facilitate matters.
Ham explained. as 1t would allow
the companies to avoid the neces-
sity and perhaps loss in floating
fourth loan
Two Million Loans
The loans negotiated so far are.
according to Ham. s2,100,000 5-year
per cent bonds which sold at ssh;
81 200, 900 railway bonds placed in
New York which sold at 81, and
sloo, 900 in which Mr.. Ham claimed
the company did a little better"
Ham informed Representative
Kunz. in answer to an inquiry as
othe return to Potomac Electric
Power was now earning. that the
rate was about per cent on the
value fixed by the Public Utilities
Commission Ham was then re-
quested to explain, to the House
District Committee. how quantities
OF electricity generated in the Po-
tomac plants were ultimately used
In Baltimore and Annapolis. The
explanation was. that the Washing
ton Railway and Electric Company
are the initial purchasers of this
current and they in turn sell it to
these consumers.
Would Not Cut ares.
Hame was asked to describe in
what way the public might hope
to be benefited by a merger as out
lined in the Ball bill, which pro-
vides for the consolidation of the
two traction companies with the
power company. Hams reply was
to the effect that some advantage
might accrue from the rerouting of
the cars but that he entertained no
hope of a reduction in the car
fares.
Considerable protest is being
made that the patrons of the Capt.
tai Traction Company are paying
too much to ride, Ham volun-
teered. but, he insisted, under the
provisions of the Ball-Focht bill
the conditions would be unchanged
The Public Utilities Commits Ans,in
determining a rate on the combined
valuation of the two companies, as
is now thsx1Rctice. would. in COM
plying wit lbse Ball bill be obliged
to follow thsfsame course" Going
further. he insisted, that the short
haul riders are not being discrimi-
mated against on the lines of the
Capital Traction Company to
greater extent Indn the SnOEI-QlS-
tance patrons of the othed company
At this point Representative
Keller interrupted to inquire
whethe- or not Ham was arguing
for public ownership. Ham advised
Representative Keller that he did
not care to discuss the subject.
But" Keller insisted. your argu-
ments are all in favor of the people
taking over the car lines"
Admits Some Lines Don't Pay.
Representative Hammer then in
quired as to the truth of newspaper
statements that some lines belong
ing to the Washington Railway and
Electric system were nonproductive
and a source of expense to the COM
pany. Ham admitted that this was
the truth. Then" inquired Ham
mer. ''am Il to understand that it Is
your intention to burden a produc-
tive company, such as the Potomac
Electric Power Company. with dead
railway lines, and possibly increase
the cost of electricity to cover
deficit created by these nom
producing properties?'
Representative Lampert moved to
adjourn. after recommending that
the subcommittee, on Tuesday, re-
port the bills now before the body