The Washington herald., 1922-03-24
Danger Signals Flying on
Capitol Hill, Selden
Warns Companies.
OUTLINES SCHEME
FOR FAIR" UNION
Wants Square Deal for
Poorer-Paying Lines,
He Writes.

tol Hill, ana il behoOveS street car
officials, who are sincere and wish
to serve the public, to get together.
declared Charles Selden. jr.. presi-
dent of the Washington and Mary
land Railway Company. yesterday.
Consolidation of all the car
lines is inevitable" he said. TT is
coming soon"
The merger bill which was re-
ported to the Senate Tuesday will
be considered at an early meeting
of the House District Committee,
probably next Wednesday. Chair
man Focht. of that committee, has
said that further dallying will not
be tolerated long.
Congress VIII Act.
II the companies do not come to
terms by the purchase of the Wash
ington Railway and Electric and
subsidiary or other lines, or by a
merger of interests on a fair valua-
ton fixed by the utilities commits
sion, or by some other plan that
will give the public a rest and bet
ter and cheaper service, Congress
will take a hand. That is the view
Of Chairman Focht whether the
| legislation will be passed which
will end the difficulties.
Representative Wood, of Virginia.
favors the net earnings tax as
means of equalizing valua atoms so
that the companies can come to
terms. and a gross income of l per
cent.
President SeIden's Views.
In a signed article written for
The Herald yesterday. President
Selden. of the w. & NJ. said.
Abandonment by the Public IT'LL
ity Commission of the District of
Columbia of part Of the program of
the so-called merger bill may at
first blush seem as II the policy of
the commission was a vacillating
one. The case IL not so. however.
for the reason that certain parts
and features of this bill were not
advocated originally by this conf
mission, although the commission.
under unfair criticism by the public,
by changing the program. has. to
a certain extent weakened its own
position. which may result in no
Legislation, Congress looking to
them to work out this problem by
other means or inducing action of
more drastic character to the detri-
ment of the utilities themselves and
eventually the public.
The taxable feature of the mer-
ger bill while repugnant to Amer
lean ideas and drastic and in the
present case, quoting from the
'Mikado.' makes the punishment (for
furnishing good and efficient sCrv-
ice) fit the crime (for being pros
perous). 1t is none the less within
the broad powers of the right of
taxation by the government and
may be a constitutional measure
1t may eventually work to the pub
!ic benefit Of inducing a more e.
ceptive mood of the transportation
companies to get together for the
general public good and future de-
velopment OF the city.
Capitals strong Position.
"Col. Keller, chairman of the
Public Utilities Commission. Justly
states that when the statement was
made by the Capital Traction Com
pany that other and better ways
exist for getting together on a
merger, these ways have never
been specific as to all concerned
Why?
FluSl-At conferences on this
subject there never has been a
meeting of the managers of the two
major traction lines on the rcla-
tive value of each Others property.
'Second-The executive and op-
erative arrangement of the merged
utilities.
The men responsible for their
companies management have dur
ing their lives served these COM
panies with the major portion of
their activities. They have grown
up with them, nu-sed them when
i'll and pulled them through serious
difficulties. Operating conditions of
these companies are not parallel.
The Capital Traction. due to it's
original location in this city, has
>been fortunate to have IS per cent
of the, traffic with comparatively
short hauls. This, together with a
consistent policy of making no ex-
tensions into nonpaying territories,
except in ve-y few exceptionkl
case, places them in a strong posi-
tion.
They Want No Merger.
Their stock is widely distributed
and their officers positions have
been permanent: consequently they
know their property, which is finan-
cially prosperous, we'll managed.
giving excellent service, and have
been able to carry out to a certain
extent their motto Give the people
what they want and, il possible,
without financial loss to the COM
pany. 1t is perfectly natural that
they have no desire to turn their
property over to others to operate.
whose earning capacity NAV be
less and whose present problems
are at this time rather difficult
Therefore. they want no merger.
The Washington Railway and
Electric Company has inherited a
great many nonproductive lines,
and some which will be years in
producing, II at all, but these lines
are serving the people and are nee
essary to the continuous develop
ment of the City Oh Washington.
Not only this, but the present man.
agement has inherited, unfortunate
>ly due to the policy of the former
chief executives of this company, a
hostile and in many cases an un-
just condition of public thought
against this property. Not being in
a prosperous condition financially,
they were unable to meet all op-
Grating requirements during this
Continued On Page Three.