The Washington herald., 1922-03-23
Traction Merger Up.

THAT bill providing for the merger of Wash
/ Singtons two traction companies should be
placed upon the Senate calendar, as it has
been, is fact auguring accomplishment in the not
distant future, as time periods considered in
connection with legislation on matters of such inn
portanee.
The measure sponsored by the District Com
mittee, of the Upper House and introduced by
Senator L. Hester Ball so far is little than
signal for the reopenng of a conflict that has
gone on these many months between proponents
and opponents of the merger, namely the public
and the Capital Traction Company, with the Public
Utilities Commission reaffirmng an attitude of tenn
porary disapprobation. But it opens the parley-a
parley which though it will see the passage Of sew
eral before it results in final action for
the benefit of District citizens scarcely fail to
settle once for all profoundly wrong condition Of
things:
We must look for the intent in a matter of this
kind father than the principles involved in prclim
mary moves The Herald is far from concurring
in the provisions of Senator Balls merger pan but
| it congratuIates him and the committee members
who voted favorable report in securing a place
of recognition for a thing of vital concern
Many bill has been rewritten in such fashion
that when finally disposed of it would be unrecog-
nizablc by those who fosered it had they been ig-
norant of Developments in the interim. Some of
our best. legislation has come in that way. The
Ball bill may not meet with so thorough meta
morphosis, though it certainly will be the center of
as stormy proceedings as have accompanied enact
ments for the District in years. Congressman,
officials of the municipal government and of the
traction lines and civic organizations hold as many
divergent views on a modus operand for the
merger there the descent of man. All
these will be aired on and off the floors of the
capitol in the course of arriving at just and
practical settlement
Senator Ball would tax net earnings of the
street railway corporations above per cent on a
fair valuation in such fashion as to return the far
greater part to the people. He would allow mer-
ger between the Washington Railway and Electric
Company and the Potomac Electric Power Com
pany preliminary to the greater combination.
The Capital Traction Company protests such a
plan is conhscatory but offers no alternative.
The Public Utilities Commission agrees on the
project of taxation but would limit the present at
tempt to this, in the hope of promoting a more
favorable sentiment on behalf of a merger in the
minds of those identified with the two traction
companies" 1t warns against the evil of allowing
consolidation between the w. R. & E. and the
p. E. P. Co, declaring that such a move would
remove any incentive toward the larger merger"
The Herald adhercs to a plan advanced in its
editorial columns last year when falkland nothing
but tslk-of coalition was rife. The main points
are these:
Purchase of the w. R. & F. Co. system
by the Capital Traction Company at or around
the fair value of the former as fixed by the
utilities body.
Exchange Of stock in the w. r. & f. Co.,
by its holders for securities of the P. L. p. Co.,
thus transferring ownership of highly lucra-
tive property and allowing present officers of
the w. R. & E. to remain as officers Of the
p E. p Co. and not sacrifice their salaries
Relief, for the street railway company
resulting, from the cost of traffic police main
tcna1ce and street paving where its tracks run,
and assessment OF taxes net, not on gross
earnings, thus stimulating expenditure for bet
terment of equipment.
Retention in the utilities law of those
clauses forbidding the merging of the w. R
& E. Go. and P. E. P Co., thing repugnaut in
principle and in practice wherever such. coali-
ton between utilities divergent in service
has taken place.
Meanwhile, all success to the moving principle
which has led to the placing of the proposition of
he meeger in the Congressional spotlight.