The Washington times., 1925-04-27
Will We Have a Street Car
Merger?-=-Facts Worth
Bearing In Mind
By BILL PRICE.

By BILL PRICE.
The North American Company, New York finance and
transportation corporation isn't going to spend $oOOO IN
making survey of the traction situation in the District and
extending into MARYLAND for fun of the job which will
be big
Consequently the outcome may be the long expected
of street railway and bus interests doubtless carrying
with the Potomac Electric Power Company owned Dy the
Washington Railway and Electric Company.
The survey tactfuly described factfndmg e11or
which it must necessarily be before merger can be ap
preached from any angle.
From both the standpoint of the public and the financial
interests involved the time for merger is most
Quite naturally big money regards the time as
appropriate wouldn't be spending money on preliminary
work
There are two important angles in any local merger
long recommended and urged by those having
the best interests of Washington in mind
l. The effects upon the public
g. The financial outcome
Big money would course put the financial side above
the public side but this feels the keenest 1ere
In the public though DESTROYS of square deal all around
Mighty needed to convince anybody that
merger public utilities properties like this would be OF vast
benefit to all concerned or at least should be-
the public angle it should result in better service
through traffic that would distance for
the travelling public eliminate crcuitous routes enable more
through and get rid Of transfers and transfer
charges. .
economies of the satisfaction of serving the
public efficiently and the good that always comes out
Of wise consolidation.
From the angle of the Public Utilities Commission
sodaion would get rid of many tanges and neques that
instead of three thereby saving time
and money
emabe Butt all depends the merger and how 1t IS
Any consolidation will doubtless be passed upon by Pub
lie Utilities Commission and by Congress before becoming
effective
If merger is undertaken carried wholly lines
doing the best thing for the public and the local
lions there will be little doubt of public and official approval
to be put through that means financial manpula
ton almost wholly in tie interests of speculative elements
with plenty water -dded there isn't going to be ap
prevail instead there will be fight of big proportions
haun ifhn1k
promoters the insiders fixing things that they
eventually made hunk of money out of through speculative
It will be observed that this preliminary study to probable
merger is starting at time when prices have probably
reached their highest point of initiation Labor and
also probably at their peak.
From financial end better time could be picked than
this merger will have to be based the supposed values
of the properties involved well their prospects OF future
gross and net earnings.
To have high valuations accepted by the Utilities Commission
and the public in the future would be just what high
finance aiming The local utilities corporations would
like nothing better than to have their properties directly
get returns from the public these changed valuations
would be fat pickings.
And yet will be impossible to achieve merger without
the valuation question entering into not only the vaua
tons heretofore made by the commission to which would
probably be added certain increases to allow for presenday
prices but valuations based the inflated prices of this
Time reproduction of not what the properties
did cost or have cost
ordinary conditions merger of railway and
companies should effect such widespread economies
result lower fares but the proposed merger
up virtually getting revaluation of properties
the basis OF todays cost OF production THAT MEANS
HIGHER CAR FARES to give the companies return that
considered reasonable within the meaning of the laws.
The motives back of the promoters of the merger PROPOSE
ton and of the stock and bond interests of the existing rail
way corporations is therefore, of vital the people
of Washington who not sit idly by while excessive vaua
tcns may be placed merged properties upon which they
must pay in the future.
With fair valuations better service and deal
for the riding public in fares and everything else merger
will be heartily welcomed by the public In the meantime
keep your the of the big utilities show
you may remarkable seght of hand offerings