Evening star., 1926-02-02

panies and for the purpose OF giving
the service required capital had to be
invited and obtained. The amount of
that capital was fixed by Congress In
each charter, just as definitely as
other requirements-Just as definitely
as 1t was stated and inferred that the
protection of Congress would be given
these companies as long as they func-
toned according to law and performed
the duties imposed by Congress.
These companies have been here
since Washington was a country town
without paved Streets" said Mr. Ham,
ilton- He pointed out that they aided
in the development of Washington,
they have given good service. and
since the establishment Of the Public
Utilities Commission not only have
they given the service they were in
corporated to give, but in full meas
ure have done all the Public Utilities
Commission, as the duly authorized
agent of Congress, has required.
There Is no assertion now that we are
failing to give the service required by
the rules and regulations of the Pub
lie Utilities Commission" he added.
Created as Legal Entities.
when Congress created these cor
PoA aSciio liiCy WCiC SlSdlcu DIS ltRdl
entities, in some respects as citizens
entitled to the protection of Con-
gress." Mr.. Hamilton said He recalled
that first the Interstate Commerce
Commission was given qualified
control over the street railways. In
1894 the utilities act was passed
and Congress then gave definite au-
thority and rights and imposed def
mite duties upon the Public Utilities
Commission.
The street railway companies have
been positively regulated by the Pub
lie Utilities Commission" he said. I'VE
are not here and We cannot be brought
here as lawbreakers to be punished
because of any failure in this duty,
but because 1t is desired that the rail-
way companies do something the law
does not require from them" he chal:
lenged.
Mr.. Hamilton pointed out that when
the public utilities act was passed there
was also passed the La Toilette act,
absolutely prohibiting the ownership
of stock by one company In another.
That law was in effect until March
last. Even then 1t was not repealed.
he argued. There was a positive pro-
against anything like a mer-
ger, a positive enactment by Congress.
he insisted.
Attempts at Merger.
There is no law on the statute
books now that evidences a desire
of Congress that these companies be
he said, "only that If these
express a desire to merge
they may be permitted to do so. Up
to last March 1t was impossible for
the companies to merge except by
favor. On account of
the wishes of some members "f both
been advocated for some years. Bills
their object the coercion of the COM
panies into merger"
Mr.. Hamilton referred to the bill
suggested by Col. Bell to force a
merger by the power of taxation. "a
misuse of the taxing power" Mr..
Hamilton branded 1t. "since q tax is
supposed to be leveled equally. l do
not believe Congress will authorize
such an illegal, unjust and unfair
measure to compel by coercive means
all the roads to come into one man.
agement. You must consider the
rights of the people of Washington
and the rights Of those who helped
develop Washington to what 1t Is by
their investment Of large sums in
doubtful enterprises"
He pointed out that Congress
always has the right. if the street car
companies do not live up to the law
or IL they find these companies no
longer worthy to exercise the right
of eminent domain and after a fair
appraisal to take them over and re-
lieve the present owners of further
responsibility. Congress has that
supreme power" he said, but Con-
gress has no right to kill a creature
of its own by a misuse of the taxing
power to try to coerce it into doing
something that the law does not
require"
Protests Against Pressure.
II emphatically protest on behalf
of the people l represent, the owners
of securities in the Capital Traction
Co., against any legislation that would
tend to cripple the companies and
force them to do something that thei
charter and Congress never intended y
Questioned by Chairman Zthlman
regarding his views on the desirable
ity Of a merger. Mr.. Hamilton said
II believe in it, logically. and eventu
ally a merger would be a useful
thing, but it will not be useful along
lines that many people believe.
will not be useful in getting cheaper
fares for the people" He expressed
belief that both the Capital Traction
Electric Co. are economically man
aged.
The reduction in personnel by 6