Evening star., 1928-04-15
BARES
STAND ON Merger
Fight centers Of, $780,
coo, 600 Valuation for Rate
Making Purposes,

The stand which the Federation OF
Citizens Associations will take before
Congress en- the proposed merger Of
the street railway and bus lines was
adopted by that body at meeting last
night in the District Building. AS final
ly approved, 1t was q composite plat
form made up of recommendations OF
the committee on public utilities and
principally substitutes offered by George
G. Hayenner, with the main fight GEN.
terlng around the matter OF the $780,
900 900 valuation for rate-making pur-
poses.
This brought forth charges from
President Yaden that there were delib-
crate efforts OF federation members 10
kill prospects of a merger at any cost,
when II was sought 70 put In a restric-
ton which would prevent the railway
company from getting an increase in
fare for 10 years.
The evening was given up To the
merger question, except for briei
period at the beginning, when Charles
arose 10 question Of personal privilege
and demanded appointment Of specie.
committee 10 investigate charges made
at the meeting Of the Brightwood Citi-
zens Association Friday night that
some Of the federation's delegates had
thrown 10 the merger plan as proposed
The final act of the federation was e
name the following special committee
10 conduct this investigation: c. A
Barker. Louis Goldman and Herber
Wilson,
Attacked As Too High.
During the course Of the debate on
valuation. William Nick Clayton Rais
that the effort OF the railroads To gel
fixed valuation was rotten TO the
core. and that IL will not stand up un.
der test" He charged that the valu
alton Of S50.0000 900 was much too high
and said that 1t included a valuation
S4.000,0O0 for the lines in Maryland
which had never been epaluated eithe:
by courts or by a commission.
IL was at this point that President
Yaden took the floor and pointed out
that II efforts were made 10 prevent
the railroads from seeking a rate
change before the expiration Of 10
years the companies would reject the
merger Mr.. Yaden said that the COM
panies could go before the Public
Utilities Commission and get rate
change In 80 days. and 20 this Clayton,
shouted a denial, followed by another
| denial OF statement by Yaden that
the companies now were getting only a
per cent return on their investment.
| When the question of universal tranh-
| ferh between bus lines and cars wat
/ under discussion, Mr.. Clayton charged
/ that the railroad companies did nol
want this He said that In future ex-
! tensions the transit companies would
put In bus lines instead Of rail lines
/ and Intended u get their Increased
revenue fr0m the charges from trans
! terg instead of higher rate,
! There Was agreement on the objection
/ that the proposed new company should
| not be allowed 10 purchase power from
! the Potomac Electric Power Co
/ and then sell IL al profit 10 other
| car companies and 10 smaller dis
| tribuLing companies for other than
street railway operation. The commit
tee report, IN part, follows;
The COMMITTEES recommends that The
| federation approve the removal from
the street car merger plan of the per
! 3etuai fixed rate base and rate oi
return.
Approves Half Fares.
The committee recommends that Tho
tederation approve the attituda Qf Llie
| commission III declining 10 nominate
the three g0~ealied public directors III
the manner provided IN the original
Wilson plan.
The committee believes that n should
; maintain It's position relative 10 the IN
cluki0u Of d labor DISPUTE CLAUSE ID the