The Washington herald., 1922-03-22
BALL ACCEPTS
CHALLENGE OF
TRACTION LINES
Reports Bill to Senate
to Force Merger
Through Taxes.
OFFICIAL OF w. & M.
ENTERS PROTEST
Declares Capital Traction
Demands Big End of
the Deal.

merger and taxing net earnings of
the companies as a means of bring
ing IL about was reported favor
ably for action of the Senate by
Chairman Ball of the Senate Dis
trict Committee yesterday.
Coming after statement by
President George Z. Hamilton of
the Capital Traction Company that
the 1900 stockholders of that cor
poration would revolt against such
compulsion as a tax on its profits,
the action of Senator Ball was re-
garded as acceptance of the chal-
lenge.
Smaller Companies Aroused.
And at the same time President
George Seldom of the Washington
and Maryland Company challenges
what he regards as an effort to ex-
clude the smaller companies from
the merger. Engineer Commissioned
Keller and officials of the Capital
Traction are in a challenging mood
against the smaller companies, eN-
pressing the view that If the
merger applied to them. except per-
missively, they would be in a posi-
tion to hold up the merger in a
demand for unreasonable terms.
"A merger is not a sale" de-
clared Mr.. Seldom last night. IF
the two smaller companies. the w.
& NJ. and the East Washington
Heights. were selling to the other
companies. they might easily be
suspected of such action. but they
would have nothing to do with de-
! termining valuations. These would
be fixed in the regular way. and the
| small companies, which have lab
ored under disadvantages at a great
| loss. without gratitude and with the
prospect OF being shut out. would
share in the benefits of merger
| only in the degree that would rep
| resent their present status.
Accuses Capital Traction Co.
THE Capital Traction wants the
big end of II. 1t has occupied this
position since Fast year when-ef-
forts were made by the W. r. & J..
to agree on relative values and
personnel. The Capital Traction
wants to dictate its valuation and
the personnel to administer the con-
solidated interests.
From the beginning il has been
a fight for the Washington & Mary
land to obtain justice. The line which
runs from Fourteenth street and Co
lumbia road to Tacoma fought for
the transfer at Fourteenth street,
and was unsuccessful until the pEb-
lie Utilities Commission came into
existence. 1t is a public utility, and
so is the East Washington Heights
line, which runs only a mile or so
from the Pennsylvania avenue street
bridge to Randall Heights. And.
while there is~>a disposition to see
that the larger companies are re-
ceiving a fair return, which Presi-
dent Hamilton. of the Capital Trac-
tion. says would be per cent. why
shoulud not the smaller utilities,
which have been operating at a loss
until recently-the W. & NJ. having
piled up a $4,000 deficit helping
the people over the hills to Takoma
why should not the smaller COM
panies have some consideration with
reference to fair return
Disputes Hanna Contention.
IF. as Vice President Hanna. of
the Capital Traction. and Col. Keller.
of the Public Utilities Commission.
say. the only two companies which
are in a position to exact unreason-
able terms in case of the merger, its
officers are unaware of the means
by which it can be done. If the
fair valuation is fixed by the Ct:!i-
ties Commission. the same as with
other companies in the merger and
the unification of the lines is based
upon this relative value, il seems
to the naive officials of the Wash
ington and Maryland company i'm
possible that anything could be ex-
pected from the, transaction more
than an opportunity for life. The
smaller companies want to serve
the public. They have never mani
Tested any desire to get rich. The
lines are needed. as shown by the
business they do. Their need is
growing all the time"
Fight just Beginning.
So it appears from the spapry IAN
guage of President Hamilton. of the
Capital Traction. to the effect that a
tax would be coercive, punitive and
destructive; from the statement of
Senator Ball. chairman of the Dis
trict Committee, that the public
must have a square deal; from the
remarks of Engineer Commissioner
Keller that the Capital Traction is
Receiving excessive profits which
should be returned to the public
and the net tax would help to bring
the richer company to time; from
PRESIDENT Seldom, of the we & NJ,
from Senator King, of Utah, that
he would fight against the net tax:
from representatives of civic organ1
izations that the public must have
relief-from all of this 1t appears
that the merger night is just begin
ming. =
Last year The Washington Herald
cited all of the difHculties under
which the companies and the public
were labo-ing and suggested the
voluntary purchase of the WASH
ington Railway and Electric Com
pany and its subsidiaries by the
Capital Traction. So far no altcrn-
ative to this plan has been sue
cessfully advanced.
Progress Seen I'm Ball Bill.
The introduction of Senator Balls
bill yesterday Is perhaps the great
est progress that has yet been made
and 1t is apparently the signal for
a real beginning of the fight. It
proposes to include in the merger
the Potomac Electric aud Power
Company following that company's
merger with the w. r. & E., by
whose stockholders the power plant
already is owned. The difficuity of
cosfinsed On Page T,eo.