The Washington herald., 1922-02-03
District, Company Off
cials, and Citizens Urge
Necessity of Action.
JOINT TRACKAGE
URGED AS STEP
Capital Traction Head
Names A Tokens for 25c
AS LOw-Fare Limit.

Merger of the two street railway
companies of Washington is newt
able, it was evidenced yesterday by
the two-day testimony given before
the Public Utilities Commission in
their public hearing on street rail-
ways, all parties. including the
commission, the public. and the COM
psnies themselves. favoring it.
During the concluding moments OF
the hearing. Col. Charles II. KEEL
Ter, chairman of the Public Utili-
ties Commission. said that argu-
ments in favor OF merger were over
whelming. To this he added the
statement that he had no means to
bring about such a merger.
Joint Use of Tracks.
william NICK. Clayton, speaking
as the representative of the Fed
GRAFTON of Citizens Associations,
suggested to the commission that
they issue an order giving each
company permission to use the
tracks of the other. This would have
the effect of combining the COM
panies as far as service was con-
cerned and would soon lead to ac-
tual merger, according to Clayton.
Earlier he had recommended that in
the future only such extensions of
tracks be permitted as would be
needed by a merged company.
Adding increased strength to the
arguments, Eugene Thompson, OF
Crane. Paris and Company, invest
rent brokers. called to the stand
by the Washington Railway and
Electric Company. testified in re-
sponse to questioning by Commits
sioner James F. Oyster that a mer-
ger would be of advantaEe to the
investors and security holders OF
both compapies. II was recalled
that William F. Ham testified that
his company was not opposed to a
merger but awaited action from
Congress.
Fare Question Dimeult.
Discussion of the merger during
the hearing resulted from the fall
ure to find a satisfactory way OF
determining fares in view of the
difference In the earning power of
the two companies. John Hanna,
vice president and general manager
OF the Capital Traction Company,
testified that his company earned
1925 per cent in 1921. as based on
the commissions valuation. Mr..
Ham testified that the Washing
ton Railway and Electric Company
earned but SIT per cent on the
commissions valuation.
1t was maintained by the Capital
Traction Company that they should
be allowed to earn at least 8 per
cent IN order to meet the market
value Of money as given in the tes-
timony Of Mr.. Thompson. Speak
ing for the Washington Railway
and Electric Company, Mr.. Ham
stated that a different rate for
each company would increase the
difference in earning power and
multiply the problem. He stated
that lower rate of the Capital
Traction Company lines would in
crease their number of passengers
and the earnings and decrease
their service, while il would act the
Opposite way for his company. He
pleaded for a uniform rate for both
companies.
Zoning Suggested Solation.
zoning was suggested as a solu-
ton OF the difficulty. Commissioner
Keller asked Mr.. Ham whether two
zones, the first having a radius OF
two and a half miles. would not
even the difference in earning
powers Without committing him
self Mr.. Ham replied that he did
not think the Capital Traction
Company was earning too much.
Later in the day Mr.. Clayton again
brought up the zoning question and
was told by Commissioner Keller
that no coming would be ordered
by the commission without a fur
ther hearing.
The Capital Traction Company's
witnesses were heard during the
morning session. George f. Hamil-
ton. president of the company,
contended that the company should
be allowed to earn at least per
cent on a fair valuation. He tes-
tifed that his company last wear
earned 1925 per cent on the com
missions valuation. In answer to
Clayton. Hanna testified that the
Capital Traction Company earned
on the commissions valuation rs
per cent in 1917. 81 per cent in
1918. 9.s7 per cent in 1918, 1o.3 per
Cent in 1920, and 1926 per cent in
1871
Based on the company's valua-
ticn. Hanna testified the earnings
were So per cent in 1917. 7.o3 per
cent in 1918. So per cent in 1920
and SIS per sent in 1891. He
estimated the 1922 earnings on
the commissions valuation would
reaoh IL per cent. Hamilton's es-
Innate was 1o.2s per cent based on
the present rate.
While Hamilton refused to state
what fare he would ask, he did
state that Nothing less than cents
cash and four. tokens for IS cents
would be fair. The latter fare was
that also suggested by Clayton for
the Capital Traction Company.
Different Rates Detrimental.
Hamilton agreed in his testimony
with the position taken by Ham
that different rates for the two
companies would be detrimental to
the, public from the standpoint Of
service. He also stated that the
company did not contemplate any
wage cuts during the year. A sim
liar statement was made by Mr.
Ham.
In discussing extensions Hamu-
ton stated that the company con-
siders extending the. Fourteenth
co~tsnued on Page T,oo.