Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-01-05
TRACTION HEADS
APPROVE MERGER
Ham and Hanna Stress
"Service at Cost" in Talks
| to Citizens Association.

ApprovaI of n street car merger
In WASHINGTON was voiced last night
by both William +. Ham, president
of the Washington Railway & Elec-
trio Co, and J. II. Hanna. president
of the Capital Traction Co. at a
meeting of the Columbia Heights
Citizens Association.
Following their regular speeches.
each OF which lasted about half an
hour, persons from the large audience
which gathered in the new meeting
place, the assembly room of the
Columbia Heights Christian Church,
asked several questions of the
speakers concerning the traction COM
panies' policies. Answers were forth
coming in each instance.
Service at Cost" Stressed.
Service at cost" was emphasized
by both speakers as one of the main
factors in the situation, and they
hoped that when the merger was
completed a sufficient fare would
be allowed. perhaps slightly increased
over the present fare. to provide a
reasonable return on the investment.
Mr. Ham qualified his approval OF a
merger by stating that steps to ef-
feet one should not be taken without
velopment needs Of a. Greater Wash
tngton, and added that the basis on
which the merger should be made
should be one which contemplateS
meeting the needs Of q larger future
population.
Mr. Ham said that the Potomac
Electric Power Co. a subsidiary Of
the Washington Railway and Electric
Co., was running at present substan-
TALLY on the basis Of service at cost,
and he estimated n reasonable re
turn" to be per cent at a minimum.
He pointed to the cordial relations
between the electric light company
and the public at present as an tndl-
cation of the success of the service
at cost plan as there applied
Mr. Hanna said that neither of the
companies was receiving a reasonable
return based on the valuation of the
properties by the Public Utilities
Commission.
He estimated the two properties to
be worth Sl0o 600. 900. as the con-
demnation va!ue, including in the w.
r and E, estimate the value Of the
Potomac Electric Power Co, and
basing the estimates on the court de
cisionS in valuation cases of the Po-
tomao Electric Power Co. and the
Capital tTraction Co. and predicted
that a scent fare would create a
deficit of 1850 600, even taking into
consideration the fact that 100000
saving IS estimated in eliminating
overhead by a merger. He did
not think. however. that an IL or IL
cent fare would be necessary to bring
q reasonable return to the companies.
Mr.. Hanna favored increase in the
number of one-man cars to help bring
down the cost of transportation.
Bell Is Favored.
BY adoption unanimously Of a reso-
luton by ]. Clinton Hiatt the associa-
ton went on record in favor of the re-
appointment of Col. J. Franklin Bell
as Engineer Commissioner of the Dis
trict. The association also adopted a
resolution by F. NJ. Barnes, proposing
another engineer member Of the new
Public Utilities Commission, thus in
creasing the engineer members to
two. Alton B. Carly, president, pre-
sided at the meeting,
It was decided to hold a reception
TO new members at the next meeting,
Tuesday, February /, when refresh
ments will be served.