The Washington herald., 1921-04-28
Honour thy father and thy mother"
stands written among the three laws of most
reverend righteossness.-Aeschyl
Washington's Street Railways.
MERGER MUST BENEFIT THE PUBLIC.

IN URlNG street railway hearing last year be-
fore the House Committee the District
OF Columbia, Representative Mapes re-
marked: The criticism has been made that this
bill Qor rerger) seems to be generally for the
benefit of the two street systems and has not
much in it to commend it to the public, or that
there not much in it that is for the benefit of the
public"
Mr.. Mapes, expressed fact borne out by the
testimony given at that hearing. The object seemed
to be to effect situation sufficiently attractive to
the companies to induce merger while preserving a
top return m revenue What the fares might be
under merger got little consideration Yet
that is the only question that at all interests the
people of the District
1t was and is, for example, earnestly advocated
that the Washington Railway and Electric Com
pany be allowed to absorb the Potomac Electric
Power Company which it owns as a separate cor
poration The latter is a very profitable concern.
1t has over 10000 patrons representing about half
the citys population. Its rates regulated, how
ever, as separate concern Its stock is all owned
by the w. R. & E. and all its present profits go to
that company income. If consolidated with the
w. r. & E. they would then, concern, have
the power to raise the light and power rates to
half the people of the city, ito make the combined
revenue pay return of per cent on the huge
combined capitalization.
This is confessedy robbing Peter to pay Paul,
under the excuse that there are more Pauls than
Peters and that some of the Peters would get back
in reduced street car fares more than hlched
from them. This is ingenious but hardly honest.
1t is fundamental that street railways is the
only adequate method of intercity transportation.
1t increases the value of real estate. 1t permits
those Irving in remote sections to do business, work.
and trade in other sections. 1t induces home own
ing. 1t spreads city in way conducive to health
and good citizenship. 1t is naturally a monopoly,
and is only capable of full usefulness when a mon
opoly.
But all this is true in any adequate extent let
alone to the full possible extent, fares are held
at the minimum. The rate which makes this return
has long been fixed at not to exceed cents. That
the initial fare with small cars that were
'horse-drswn. Electricity, large and modern
motors have greatly reduced operating cost. Before
the the tendency OF the fare rate was down. If
cities are to get back to "normalcy" the first
requisite is to get back to that prewar ntracity
transportation basis of street car fares.
To secure this, all merger discussion, effort and
legislation must be based on getting lower fares.
1t distinctly must be based on giving either COM
psny an income based on excessive overcapitslzs-
ton. If either company is so per cent blue sky,
certainly the merger effort should not be- and must
be- to force the people of the District by
sive fares, to put value in that amount of atmos-
phere.
Moreover, if one company has refused to spec
ulate in wildcats, has refused to- pay good money
for what had less than value, but has stuck to
right business judgment, it, more than the peo-
ple should be forced put its good value to sus-
tain atmosphere. Each tub should be let stand on
its own bottom of value When this is done and it
is understood finally and conclusively, that value
and not capitalization will be the basis of rates,
merger will come So will scent fares
Tomorrow the discussion will be on organization
and capitalization.