Evening star., 1921-04-09
CAR MERGERP PLAN
MAY GIVE NEW LIFE
TOPOWERPROJECT
Great Falls Development
Scheme Likely to Be TAX
en- Up at Conference.
OFFICIALS BELIEVE TIME
HAS ARRIVED FOR ACTION
Congress Expected to Show Inter-
est in Linking River Proposal
to Traction Union.


Revival of the Potomac river power
development project as an important
economical factor demanding consid-
Grafton in conjunction with the street
railway merger conferences which be-
gin next Tuesday appeared probable
today.
Prominent government officials, it
is known. regard the merger move
ment as having given new life to the
power scheme, which was reported
favorably to Congress by the Federal
Power Commission at the close OF the
last session
members of the Public Utilities Com
mission. which will participate in
the conferences. have not overlooked
tne connection which the power mat
Ierested In economies that may be
oeVeioped in this direction.
Will Probe Into Claims.
The commission. it is believed. will
oIooe deeply into statements made
tnat the harnessing of the Potomac in
conjunction with the merging of local
traction and electric light and power
interests Will do more to reduce street
car fares and electric light bills than
a merger alone
based on study made by Col. NJ
Z: Tyler OF the Corps of Engineers
OF the Army, the power plans con-
template joint arrangement between
the government and local utilities
whereby the government would build
Dam at Chain bridge and the utiI-
lties receive the power developed AMI
dispose Of it through their existing
distributing systems.
Col. Tyler estimated this would re-
G n RI %
power bill considerably. The board
OF engineer for rivers and haroors
and the Federal Power Commission
after going over his estimates. reach
ed similar conclusions.
Time for Reconme ndations.
Now that there is probability of
the Potomac Electric Power Com
pany. the Washington Railway and
Electric Company and the Capital
Traction Company being merged into
single corporation, War Department
officials believe the logical time has
arrived for considering the Tyler
recommendations.
In his report, Col. Tyler said:
With coal costing 81 per ton {. o. b.
car at steam stations in the District
OF Columbia. the power plant out
lined. ii operated in conjunction with
the central steam stations and dis
tributing systems Of the public utili-
ties of the District Of Columbia, will
deliver power at substations 2 mills
per kilowatt hour cheaper than the
production, cost at steam station
per cent on capital investment, pay
depreciation. maintenance and opera
tion charges. return the capital in
vested in thirty years and conserve.
a9nually' an naaly approximately 100000 tons
In agreeing with Col Tyler that his
estimate of saving to the public would
be substantially realized. the board of
engineers for rivers and harbors also
stressed the point that the water plant
should be operated in conjunction with
the present steam plants. The board
said:
There should be a definite, legally
enforceable contract between the pub
the licensee for the water power. bind
ing the former to receive and the lat
ter to deliver all available water power
that can be used in place Of steam
power
Dam Would Cost Sl3,0O0. 900.
Col. Tyler estimates it would cost
about $13.ooo.0o0 to build a dam at
Chain bridge and meet interest
charges during the five years required
for construction. Under this plan the
existing steam plants would be held in
reserve for periods of low-water supply
ne OpefdlaOH OIL tnc SuAlu OflQRe
hydroelectric development in con-
junction with the p iblic utilities" he
states, will require no expensive and
wastefu1 duplication of distribution
facilities, and. therefore. would ac-
complish the distribution Of the hy-
draulically generated power to the
public and the government at mimi
mum cost"
Congress has shown interest both
in the proposed harnessing OF the Po-
- f~s
the merging Of Washington's traction
lines. 1t has made appropriations FOR
power studies. Members Of Congress
this week brought about preilmi-
nary conference which led to a de-
cision to institute active merger ne
gotiations.
Congressisaal Inquiry Expected.
In view Of Col. Tyler's estimates of
the saving that would be effected
a power plant were built at Chain
bridge and operated in conjunction
with existing steam plants Congress
nomic desirability OF considering the .
power scheme in connection with any
merger legislation that may be pro-
posed.
matter will be brought up. however,
until after it has been determined
whether the utilities companies can
find a basis for<a a merger. The pre-
liminary conferences will be directed
toward bringing them together on q
basis Of valuation. relative earning
power, outstanding securities or
some other foundation Of justice and
durability. Once the basis of q con-
solidation is effected, the conferees
will take UP the requirements Of the
superstruc IRE, and, in this connec-
tion, the Tyler plan undoubtedly will
come in for consideration.
MERGER BILL IN CONGRESS.
A bill providing for the merger Of
the street railway 1ineN of the Dia.