Evening star., 1926-06-16
MERGER BILL GOES
OVER RTODECEMBER
Senator Capper Predicts
Consideration of Car Lines
Issue in Next Session.

The problem of bringing about
merger Of the street railway systems
of WASHINGTON undoubtedly will he
given further consideration by com
n,ittees Of Congress at the next SEES
sion in December. Senator Cappef'
chairman of the District committee,
predicted today In discussing the lat
est developments Al the District
Building yesterday on the question Of
consolidation. sFU
TIT is too late to accomplish any
thing In the way Of new legislation
looking to merger before the
present session ends" said Senator
Capper. but I have no doubt the
matter will be given attention early
in the next session"
IN the letters received by the
Public Utilities Commission yester-
day from the two railway compa nies,
there was some indication that the
discussion Of possible merger plans
has been delayed partly by the knowl-
edge that a bill is pending in Con
Eress reorganiZing the Public Utilities
Commission. This measure has pass
ed the House and Senator Capper
said today he expected the Senate.
would act on 1t before adjournment.
y Personnel of Commission.
The House provided for new com
mission of three members completely
separated from the Board of District
Commissioners. The Senate District
committee has amended the measure.
to retain the Engineer Commissioner
Of the District as a member of the
new UTILITIES hoard.
hopeful that Congress will take IN
the merger AT its next session. En-
gineer Commissioner Bell pointed out
today that the commission. by It's own
initiative, can effect a somewhat sim
liar result by treating the compa MES
as a consolidated unit.
While Col. Bell is not strongly in
favor Of such plan. he indicated that
II might be adopted in the absence of
compulsory merger legisla ton. The
procedure under such a plan. he in
dicated. would he to ignore the terri
torial rights of the two companies
abolish pay transfers. reroute existing
lines and permit one company to ex-
tend its lines into territory served
by the other.
Companies View Given.
The commissions request for leg
fslation TO force a merger was sent
to Congress Yesterday afternoon. fol
lowing receipt of statements from the
heads Of both traction companies that
they did not intend to take any fur
ther definite steps toward voluntary
consolidation in view of the likelihood
of the passage Of the bill creating n
new and separate utilities commission.
and the lack of assurance from the
commission that II would approve p
service -at.cost plan of operation. ten
tatively suggested as basis for ANAL
gamation. The proposed service-at-
cost plan would provile for automatic
regulation Of fares based on reason
able return on the fatU value of the
properties of the companies.
Officials Of the commission make no
effort to conceal their dfsa pprova, Of
a proposition which would base the
merger on a consent valuation. The
commission however. according to
Commissioner Bell. has been willing to
recommend to Congress merger
based on guaranteed net income or
the continuance of the present rates
Of fares over period of years while
merger arrangements are projected.
and has been willing to consider the
initiation of a service-at cost plan
approximating the investments which
have been made in developing the
properties.