The Washington herald., 1922-03-24

one company not receiving enough
for its service and the other, re-
ceiving too much.
MIX In the Coeoanut.
while the Washington Railway
and Electric is thus Handicapped. 1t
owns and controls a most valuable
operative franchise and plant,
namely that OF the Potomac Eiec-
trio Power Company. the real milk
OF the cocoanut. whose future Is
bound with the city and which has
just commenced to grow. The
power company has more potential
value and earning possibilities than
either of the railway companies and
has practically no competition. ex-
cept the Washington Gas Light
Company, whose product cannot be
compared with that Of the Potomac
Electric Power Company either in
quality. adaptability. or in price.
The Improvement In the art OF
lighting and heating by electricity
will continue and its usefulness will
be more fully developed for the
general welfare. II handled on
broad lines. while the art of trans
portation by trolley has almost
reached the limit. The Washington
Railway and Electric Company owns
the power company and Is probably
its own largest customer. with the
development of Washington in a
few years this child will be on the
way to full manhood, and hence
why ask the question, do you want
a merger? No, we wish only to
be let alone to develop the future
OF our own companies, which sue
cessful development is no longer in
doubt.
while the potential value in
earning power and the future of the
power company is greater than the
Capital Traction or the Washington
Railway and Electric Company, all
these utilities are essential to the
happiness of the people of the Dis
trict and the future greatness of
the Capital of the United States.
AS stated. a merger, not being
a sale, Is a combination OF utilities
OF a similar character and sub
salaries linked with them. of not
only their assets and franchises but
the managements as we'll
In our personal experience as
executive of one of the nonpaying
roads for many years in the Dis
trict. il has necessarily brought US
in touch with w. +. Ham. president
of the Washington Railway and
Electric Company. and ]. II. Hanna,
vice president and general manager
OF the Capital Traction Company,
thus allowing US opportunity to
study the ability and temperament
OF both of these skillful men. We
have had to fight and pay tribute
to each of them. the Washington
Railway and Electric for power. the
Capital Traction for transfers, some
years ago.
Reason for Hesitation.
Even in view OF the smallness
of the request before the Senate
committee to strike us out OF any
compulsory merger legislation, be
cause We might nullify it and at
tempt to hold them up on account
of price, and in view Of the fur
ther fact of their not being able to
determine each others relative
value. the public can readily see
that we might hesitate to allow
them. after merger. to be the sole
arbiters of our financial future.
Perhaps they would compel US, to
protect the community served by US,
to accept lilliputian amount with
out giving US credit for ten years
of struggle against odds and con-
demned by them for owning a line
that, according to their theory
should never have been built, but
which nevertheless appears to be
highly beneficial to the development
of that portion of the city served
by IL.
William F. Ham and ]. II. Hanna
are the logical men to head and
operate the merged transportation
line and the Potomac Electric
Power Company. They have at this
time no understudy. They are the
practical operators of their respec-
tive companies. William F. Ham
would be the logical president of
this merger. due to experience. serv-
ice. temperament and broad vision.
both in large and small affairs. J.
II. Hanna. the logical vice presi-
dent in full charge of operation, has
engineering ability, education and
experience.
oCcAb air Dtul.
'I do not wish to detract from the
excellent personnel of both COM
panies and especially call attention
to the strong dominating personality
of George Z. Hamilton. president of
the Capital Traction, who has served
that company so well. so faithfully
and helped steer II away from the
rocks of a merger, the terms OF
which did not seem to meet his or
the views of his stockholders. He Is
on the firing line tonight and he. is
the Nestor of the street railway
presidents in the District Of Colum-
bia. and with his legal and financial
ability would he the logical chair
man of the board.
THE Capital Traction Company
must realize. while they have been
most fortunate in not owning any
nonpaying lines. that other COM
panies in the District have these
lines. by which the public has
benefited, and the companies
have suffered deficits in operation OF
these lines. This should be taken
into consideration and the stock
holders and owners of those non
paying lines should be taken care
of and treated literally in any pIar
of merger.
Can't Satisfy All.
1T might be said. since you have
suggested the operating manage
~ment of the merger, why not give
US the financial plant 1t is moro diff.
hcult to impress upon the company
whose pockets are pretty well filled
with the peoples money, that the
other company owning and operat-
ing nonproductive lines must not