The Washington times., 1921-08-02
TRACTION MERGER
BARRED BY GREED
Of stockholders
continued from First Page.)

U'OntlnueQ IFOIn o6CJ ...a
dollars in operating costs are
WASTED because the cars of each
company must be confined to the
tracks of each-except In the few
cases where the Public Utilities Com.
mission has required the Joint use
of tracks by both concerns.
Fare Cut, Solution.
All of these economies could be
reflected in REDUCED fares, but
the greatest of all would be that, UNI
der one system, part Of the excessive
profits of the Capital Traction lines
could be spread out over the less
profitable lines Of the Washington
Hallway and Electric, which would
mean IMMEDIATE and substantial
fare reduction.
Don't forget In this connection
that the Capital Traction, according
to recent figures compiled by the
Utilities Commission, made 1854 per
cent on its fair value under the s.
cent fare, while the Washington
Railway and Electric made only b.Go.
If the companies were merged, at
least half OF what the Capital Traction
made above 6 per cent. or asa per cent,
could be cut in two-one-half to go to
the public in the form of LOWER
fares, and one-half to take care OF the
reduction that those lower fares would
make I'm profits on the Washington
Railway and Electric lines.
This economy, together with the
savings incident to SINGLE owner
ship and operation. should bring the
scent fare in sight again. II not actu-
ally into existence.
Now for the WHY which I men,
toned above.
Stubborness Balks.
With lawmakers. Utilities Commis-
sion and citizens In FAVOR Of merger,
what stops 1t? Just one thing:
The refusal Of the two companies to
get together.
Now. 1t does no good 70 say: They
should be MADE to get together.
They CAN'T be made to get together.
They are private corporations, and
can no more be forced to consolidate
than the Willard and Shoreham
Hotels. 1t Is utterly futile to imagine
Congress can FORCE them. 1t simply
can't.
Now, as to the reason they won't
get together. 1t is equally simple
and understandable. and is exactly
this:
The perfectly natural selfishness Of
the stockholders Of each company.
The Capital Traction stockholders
have a mighty good thing-and know
1t. They are MAKING BIG MONEY
NOW. Therefore, why take on the
losing properties Of the Washington
Railway and Electric?
On the other hand, the stockholders
Of the Washington Railway and Elec-
trio arc lie the ma N vvhn had the hna ~
by the tail-they can't let go. They
have an Improbable investment, but
they won't sell or trade UNLESS
THEY CAN GET A GOOD PRICE.
Stockholders Hopeful.
This applies with special force to
the holders of the $500 900 of common
stock, some of whom paid all the way
from $50 to $50 for it-only to find
today that they can't sell II at any
price. 1t has literally gone TO moth
ing in market value. Therefore, the
stockholders have nothing to lose, and
are hanging on in the hope that
something may happen"
Those two conditions--the opposi-
ton to merger by Capital Traction
stockholders and the determination to
get a good price by Washington Rail
way and Electric stockholders-have
prevented merger and imposed on the
town the necessity of high street car
fares.
That looks like a hopeless situa-
ton, doesn't it?
Necessity for merger stares every
body in the face, but merger can't
be had because a comparatively few
stockholders of rival companies won't
get together.
There is ONE way out, and that
way l shall discuss tomorrow.