Evening star., 1926-11-03
Ham Tells Utilities Body Its
Attitude Has Not Changed
on Valuation Question.
FORCED CONSOLIDATION
URGED AT PUBLIC HEARING
Spokesman for Civic Organizations
Present Varied Plans-Hanna to
Talk for Capital Traction.

Any plan for q merger of the
Washington traction companies which,
fails to guarantee the full val
uation of physical property and i
fair return on the capital invest
ment will be opposed by the Wash
ington Railway and Electric Co.
William f. Ham, it's president
told the Public Utilities Commission
today at an informal public hearine
called to consider proposed Legislation
to force the companies to enter intu
consolidation.
Mr.. Ham indicated by this state
ment that his company'S attitude has
not changed since last June, when ii
suspended merger negotiations With
the commission because the commits
sion was not inclined to approve Il
service-at cost plan, which would pro
vide q reasonable return upon the fair
value OF the property devoted - pub
lie use.
The unified plan of operation pro
posed by the commission. Mr.. Ham
insisted, will not assure the company
what it considers to he either Il faii'
valuation or fair return upon its
investment. lie also reiterated his
previous statencnt-that the company
proposed to wait until the attitude OF
Congress i'll this respect has been as
certained.
After a luncheon recess the hearing
was resumed at O'Clock. and before
IL adjOurns John H. Hanna, president
of the Capital Traction Co. is expect
ell to explain his cOmpany's position
in regard to q merger.
Many Urge Merger
The commission listened virtually
the entire morning To the renewed
pleas Of civic organizations through
representative spokesmen for mer-
cr of the traction companies.
Not one voice In opposition wa
heard until Mr.. Ham ,oOk the floor
The civic organization representa-
tives went into considerable detail to
explain what they thought would be
the benefits of unified operation and
to suggest what measures should be-
followed to bring it about. The com
mission had prepared two questions
for consideration and it was obvious
from the testimony that the civic
body delegates had given them cou-
siderable study. One was whether
the public desired u merger: the
other was what measures should BE-
IL.
The charge was made by Mr Ham
in his testimony that the Utilities
Commission has misled the public to
believe that the merger would result
in a reduction In fare. which he de
clared Is an impOSSibility.
A merged company would find just
as the two present railway companies
have found" he said. that the pres.
ent rates of fare are not adequate to
provide q reasonable return. This
commission we'll knows that the pres.
ent service rendered by the two com
panies is not paid for by present
rates"
Twice, he said. the commission has
recently refused the companies re-.
quest for increased fare
Bell Protests Issues.
Commissioner J. Franklin Bell.
chairman of the commission. then
interrupted Mr.. Ham to protest that
neither valuation nor questions Of faro
should be injected into the problem
OF merging the traction coinpanies.
We cannot go to Congress asking
approval OF u merger plan" he de-
clared, that permits the COMPANIES
valuation higher than the Utilities
| commission has found to be reason.
y
antee at the outset a promised in.
crease in fare
In return, Mr.. Ham said he could
not ask the holders of railway securi
ties TO buy an uncertainty" in the
way OIL the return on their invest.
ment. The whole movement for n
merger as conducted thus far. he de.
clared, is wrong because it does NOT
gave such a guarantee.
After a spirited discussion on this
point, Mr.. Ham said that his company
might abide for a time in it's insist i.
ence upon the higher fare. but that
he coubd make no compromise in ths
matter of the valuation which is now
pending in court. Unless Congres5
takes very definite steps this Wintef
toward forcing merger, it was indi
Gated that the merger movement
probably would be deferred until thu
court issues final ruling in the vain,
alton case.
Threatens Court Fight.
Commenting upon what he inter.
preted to be the commissions obvious
endeaVor to force a merger, Mr.. Ham
declared he failed to understand "hov
any commission of fair-minded men,
could foster any plan that would
serve Ito destroy two existing com.
panies without cause" He argued
that any move by the commission td
grant>an unlimited number of permits
to bus companies. which would one.
rate in competition to the railways.
would be unconstitutional, and he in.
dicated he would fight it in court.
Congress itself would have no
right to revoke the charters of tho
railways" he said, ''for failing To
merge"
Commissioner Bell again interrupted
to declare the commission had that
legal right and could, IL II sees fit, per.