Evening star. [volume] (Washington, D.C.) 1854-1972, 1925-09-27
BY /. A. FLEMING.


Officials Of the North American
Company, the great holding corpora
ton that has recently acquired such
large stock interest in the Wash
ington Railway and Electric Company.
and which admits that it would like
ultimately to bring about merger
of the local traction companies also
states as plainly as possible that it
has not definite plans in the matter
as yet.
Despite this. there are those who
think that the corporation knows
exactly what 1t would like to do, and
that it Is big and powerful enough
to plan for and carry out the matter
to a successful conclusion, once the
management decides how and when
II can be put across.
View Taken BY Public.
The public seems to believe that
the time for solving all difficulties in
the matter should have been previ-
Gus to the investment Of millions of
dollars, and that the study of a sur
vey should have in wisdom, preceded
and not followed investment.
Eighty per cent of the business of
the North American Company is in
the manufacture and sale of electric
light and power. and the remaining
20 per cent largely of gas, and then
street railway traffic.
1t has been suggested that the hold
ing company might like to divorce
the Potomac Electric Light and
Power Company from its owners, the
Washington Railway and Electric
Company, although there is no evil
dence of any such wish.
a merger of street railway prop
critics after such a divorce would not
be at all attractive. Indeed, it is
doubtful If the Washington Railway
and Electric Company could stand.
or rather continue in business, if
shorn of its strength and support.
An Important Problem.
Probably one of the hardest nuts
to crack in any merger proposition
is the matter of universal transfers.
which would probably be insisted
upon by 1.-THE authorities.
The two compa MES, on the earnings
of a strictly traction business. would
not be able to pay dividends to share
holders on their capitalization. Capt.
tai Traction is doing IL today, but the
other company is not. being entitled
under the ownership Of the Potomac
Light and Power Company to- large
dividends therefrom.
A merger would eliminate the earn
ings under the universal free trans
fer system from passenger fares of
one company, for il IS an admitted
fact that fares are as high AS the
traffic will stand. and that any in
crease. even If permitted by the COM
mission, would increase the use of
the cheap automobile.
Washington Gas Light Company
and Potomac Electric Company. in
the event of being granted the right
to increase charges. might advance
rates with impunity, being without
comp&itfon, but the street railways
are handicapped in this respect, and
fares are near their limits now.
1t is indeed a hard nut TO crack.
this merger proposition. 1t matters
not whether undertaken by its friends
or by Congress. The outcome will
he awaited with keen interest.
Turn i'm Traffic Tide Seen.
Some of the officials of the Capital
Traction Company actually believe
that they sense the beginning of the
let-up of automobile competition, not
indicating in the slightest that they
even think of such a thing as that
the automobile will in any way lose
its popularity.
What they do think is this, that the
difficulties of parking. the long, slow
threading of the crowded highways
and the inconvenience incident to
getting to and from parking places
in the downtown district will cause
many persons to return to street cars
and buses as a means of reaching
their places of business in the morn
ing and their homes in the evening.
They are led to this conclusion by
the fact that the patronage, of the
de luxe automobiles on Connecticut
avenue is far and away in excess OF
their anticipations and from evidences
that many who have heretofore made
use of their automobiles have aban-
doned them in connection with bust
ness and have adopted the de luxe
busses and street cars.
Traffic Extremely Heavy.
There is no buster highway in
Washington in the rush hours, as we
have come to know them, than Con
necticut avenue. the trend of traffic
being largely south in the morning
and north in the evening, but with "A
very heavy continuous movement in
the opposite direction as well, to-
gether with the street car service
south and north of the Million Dol
lar Bridge, and with large entrance
and departure traffic TO and from
the highway at every important in
tersection.
Through traffic to and from Chevy
Chase and Maryland is almost con-
tinuous, and in the rush hours it is
frequently a slow, creeping line in
each direction, with many stoppings
and diStracting mobs of cars.
What is more natural than that
| business men should become disgust
80 IT. I'D
home again in comfort. avoiding all
these troubles through the use of the
de luxe omnibus or street car with
a material saving over the cost of