Evening star., 1922-09-02
MERGER OPPOSED;
FIGHT ON IN SENATE
Public Utilities Commission
Renews Objections to Rail-
way Combine Bill.
RECONSIDERATION ASKED
Senator Jones Blocks Measure
From Going to House-Pass-
age Comes Unexpectedly.

The Public Utilities Commission to-
day renewed it's opposition to the
street railway merger bill, which was
passed Unexpectedly by the Senate
yesterday afternoon.
At the same time reconsideration of
the vote by which the bill providing
for the merger of street railway COM
panies in the District of Columbia
was passed by the Senate yesterday
was sought by Senator Jones of
Washington and a member of the
Senate District committee, today.
Senator Jones took the floor immedi-
ately after the Senate convened this
morning and said that he was en-
gagged in something else when the
merger bill was reached on the calen-
dar yesterday and did not realize that
the bill was before the Senate until it
had passed.
Measure Blocked.
The bill had not gone to the House
and the effect of Senator Jones' mo-
ton this morning was to keep the
measure on the table and prevent it
from going to the lower body until
after the Senate has acted on his mo-
ton for reconsideration.
When asked for the views of the
commission on the bill just approved
by the Senate, Commissioner Rudolph
called attention to- a letter which En-
gineer Commissioner Keller. chairman
of the utilities board, wrote to Sem
ator Ball several months ago. The
gist of the letter. which Mr.. Rudolph
says still represents the feeling of the
commission. is contained in the fol-
lowing paragraphs:
Objections OF Commission.
THE commission feels. as it has in
the past, that to permit the Washing
ton Railway and Electric Company to
absorb the Potomac Electric Power
Capital Traction Company will re-
move from the two railway companies
any incertiv9 toward the larger
merger. Since the present financial
disadvantage alleged to be expert
enced by the w. r. & E. would. by the
absorption of this subsidiary. be COM
pletely removed, and its position with
the bankers and the public would be-
come fully as strong as that of the
Capital Traction Company"
The bill as passed by the Senate
authorizes the w. r. G. E. to consoli-
date with the electric light company
first and then gives that united cor
merger with the Capital Traction
Company.
The utilities commission takes the
position that the. W. R. & +. should not
be allowed to unite with the power COM
pany unless at the same time the Capt.
tai Traction Company is made party
to the merger.
1t is understood to be the fear of
the utilities commission that after the
w. r. G. E. has merged with the power
company there will be no immediate
steps steward getting together with
Opinion of Mr. Ham.
william F. Ham, president of both
the w. r. & E., and the power COM
pany, in a statement today, took the
opposite view of the commission. He
contended that the two street railway
companies will be able to agree on
merger terms much more readily after
his street railway line has taken over
the power company. He called atten-
ton to the fact that the w. r. & Z.
already owned all of the stock of
the power company. but Is required
separate organizations. The consoli-
dation of the w. r. & E. with the
power company, he said. would greatly
strengthen the financial condition of
the railway company.
John H. Hanna, vice president and
general manager of the traction COM
pany, was not willing today to dis
cuss in detail the effect of the Senate
bill. He did say. however. that since
It is illegal for the two street railway
companies to merge under existing
law. the Senate bill is a step in the
.;rh+ d;roctioo hecat1Se ii removes all
iaeai ohstacles to a consolidation.