The Washington herald., 1921-05-28
Washington Street Railways.
xxx. MERGER PLANS.

THE street railway merger proposition comes
before congress far less complacent than
that of 20 years ago and backed by a very
different attitude toward public service corporations
The people know heap than they did then
of financing; they far more alert in their own
interest and congress is far alert in their pro-
lection.
In recent interview, Senator Capper said:
"The Scent fare is too high. 1t is unjust to the
people OF the District. The roads may think they
But | predict that congress will find a
way to bring about merger of the lines get a
reduction in the rates without merger. Congress
does not propose to stand for continuance of pres
en conditions especially in view Of the stubborn at
titude of the companies. The lines
Fem to think that they the town and do
Y hey please"
Other members of the District committee have
expressed themselves in much the same way. They
are evidently impressed with the fact that the
Ger proposals made by the companies had re-
gard for the public interests. They indicated in
tsnfon OF reducing fares Indeed the w. R. & E.
eontends that the public is deceiving itself when it
1xpected any fare reduction to come from merger;
that this cannot be a result.
- The whole effort and intention of the pro-
posal was to support and perpetuate the present
capitalization and each company sought control of
the combination There an evident desire to hang
sacrifice drop of water the sweat from the
squeeze of the popuace. Before merger can come,
congress lay down the rule of the square deal
with the companies and those who pay, each having
equal consideration, and without any development
of the milk of human kindness which will be a
blinder to past and continuing iniquities.
The plan of the District commissioners was a
carefully worked out highly scientific basis of ex-
hAass values OF the stock and properties just how
Z. II 4 r
actual earning capacity. may be stumbling block,
but the attitude and attempt were wholly fair But
K Included the Potomac Electric, which The Her
aid convinced should be considered 1t should
be whc,ly disregarded element of the w. R.
& E. values.
In short there should be divorce as well as
marriage. The antimerger law should not be disre-
garded. The evil it so clearly and emphstically
covers, should not be perpetuated 1t is that law,
and only that law which prevents street railway
merger without congressional action. Otherwise
either company under its present charter could buy
the other on any basis upon which they might mu-
fully agree This law gives Congress the oppor
tunity to carry into effect what then indorsed
by its predecessor and to bring the condition which
it plainly said in the interest of the people
and the right policy as to public utilities.
If someone loses money from merger
which is fair to the people who pay and is fair to
the companies just properties, one has any
right grounds of complaint If there is person in
the United States who has made bad in
vestment it is someone who never has had dollar
to invest and credit. There is more reason
why congress should protect those who have been
deceived into making bad investments in public
utilities, than those who have done the in any
other stock-railroad industrial oil, mining and
what not 1t has not protected those who
bought Liberty bonds.
Had there been right blue-s<y law in 1896
covering the sort Of wildeyed ruthless operations
which eliminated in the formation of the w. R &
E. and it had been enforced, some one would have
gone to jail, and there now would be fewer widows
and orphans to form refuge for his innocent sue
The Herald has indicated plan for mer-
ger which will be given more in detail. 1t would
be fair to all and it would result in an immediate
and material reduction OF street car fares