Evening star., 1926-11-03
w. R. & E. TO FIGHT
MERGER UNLESSIT
GETS FAIR RETURN
Continued from First Page.)

nit the establishment of any number
Of competing bus lines in an attempt
to force merger. He added, however,
that he hoped that extremity would
not prove necessary.
Under questioning, Mr.. Ham ad-
mitted he believed merger Of the car
riers would in the future prove eco-
nomical and to the benefit of the rid
ing public. He insisted, however, that
there would be no saving of some $2.-
000, 900 in operation costs, as some pro-
ponents of the merger have declared.
Mr.. Ham also pointed out that since
1919 the board of directors of the w.
r. & r. have been on record favOring
merger if that consolidation would
guarantee reasonable return upon
fair valuation"
The general opinion among speak
ers was that a unified operation would
result in quicker and better service
through a rerouting of the existing
lines, universal transfers and a possi-
bic reduction in fares. Outstanding
among the suggestions offered for
forcing a consolidation were unre-
stricted bus competition, with bus
routes paralleling car lines, If neces-
Sary and a rerouting Of the cars of
one company over the tracks Of the
,ther.
The opinion seemed to prevail that
his could be done by the commission
without congressional sanction. In
other words, it was felt that the act
creating the Utilities Commission car
ried the authority for such action.
Fear was expressed that If Congress
becomes involved in any plan Of mer-
ger, litigation most naturally would
follow and the consolidation would be
delayed further for many years in the
courts.
Maj. w. E. r. Covell. senior Assist
ant Engineer Commission and Utilities
Commission attache, read at the out
set of the hearing a number of sug-
gestions previously received by the
commission as possible ways for
bringing about a unified operation.
These were classed in two distinct
groups. One group proposed various
penalties to infiict on the companies
If they failed to consolidate. The
other contained different privileges
| that could be granted the carriers if
they do merge voluntarily.
Many Suggestions Received.
The suggestions in the first group
were: Revoke charters, increase gross
| revenue tax, impose a franchise tax,
allow unlimited bus competition, and
appropriate money for the employ
ment of a nationally known traffic en-
gineer to study the rerouting Of cars,
etc, and then have the commission
give the necessary orders for running
cars Of both companies indiscrimi-
nately over tracks Of other companies.
All the other group the following re-
n nP hn
crossing police tax, a repeal or reduc-
ton in the paving tax, a guarantee
against bus competition, modification
of the present taxation, and a repeal
or modification of the bridge repair
tax
Those who spoke in favor Of the
| merger were: Lieut.. Col. w. G. Caples
of the st. Adams Council Of Citizens
Associations; Rose p. Andrews, presi-
dent of the Merchants and Manu-.
facturers' Association; Alton B. Carly
of the Columbia Heights Citizens AS
ISOLATION; John S. Cole Of the Park
view Citizens Association; Jesse G.
Duke, also Of st. Adams Council of
Citizens Associations; J. L. Gamnell
Of the Lincoln Park Citizens Associa-
ton; George w. Ayers of the West
End Citizens Association; Jesse G.
Citizens Associations and chairman
ex-officio OF the Citizens Advisory
Council; David Babp; o. H. Brinkman,
clerk of the Senate District Commit
tee; X. =. Armstrong Of the Rhode
Island Citizens Association; Ernest
II. Pullman Of the Manor Park Citi-
zens' Association; Hugh M. Framton
of the Cathedral Heights Citizens AS
sociation, and William G. Henderson
of the North Capitol Citizens Asso-
citation.
Mr.. Brinkman was most emphatic
in his belief that unlimited motor bus
competition with the car lines would
bring about merger. Any attempt
to force such action by law, he de-
clared, would throw the matter into
the courts, where 1t probably would
rest for many years.
THE merger has been discussed for
a long time" he said. Citizens asSo-
Citations resolute about 1t, the COM
mission discusses it, and the merger
is no closer than it was then. If the
railway companies are doing good
business there is no incentive for
them to merge"
Mr.. Armstrong did not agree with
Mr.. Brinkman as to unlimited bus
competition. He told the commits
sion that such a condition probably
would disrupt the car companies and
that Washington is in no condition
to dispense with these carriers.
Mr. Suter pointed out that few
propositions have ever received so
unanimous approval as the one for
merger. "The merger" he said.
has been agitated for years. ] be-
lieve that the public will be best
served by a consolidated company
and l know of no more reason for
the existence Of two competing car
companies in Washington than for
two competing gas companies"