Evening star., 1928-03-30
The Merger Report.


case, at which representatives OF tho
rapid transit companies and of the pub
lie had full opportunity for expression
Of views and presentation Of arguments.
the Public Utilities Commission has
given Its approval to the proposal for q
merger Of the Capital Traction and
Washington Railway g. Electric Co s.
together with the Washington Rapid
Transit Co The commission proposes
certain notifications in the merger
scheme. It recommends that the VAL
uation Of the properties Of the merged
corporations stand at $50 O0000 for at
least ten years. and thereafter until a
revalustion is made, " thus compromising
the contentious of the public representa-
tives for a reduction Of the valuation
and Of the companies for possible in
creases in the valuation. 1t disapproyes
the suggestion Of a seven per cent return
OF profit on operations made by the
companies. and substitutes provision
for a reasonable return" II favors a
guarantee that the rate OF fare shall
remain as at present for al least one
year
Under the law the merger plan must
now be submitted TO Congress for final
approval The report Of the Public
Utilities Commission carries IL there for
examination and consideration. Thus
there is q shift OF the scene Of action
upon this question. which has for a
number OF years given the public great
concern. There Is reason to hope for
enactment during the present Congress,
though not perhaps at the present ses-
sion. IN terms which will yield the full
est measure Of equity 10 both public
and corporations.
The community desires a merger which
viii bring first. the best service at the
cheapest rates OF fare, and. second, will
retain. II it is possible local control OF
the corporation. Only local control In
the past has caused the manage
ments OF the rapid transit lines to be
responsive IN some measure 10 local
public opinion and has caused the
wholesome development OF the street
railway system. as for example. in SUBJ
stitutinR the gro0ved rail- for the t.
rail equipment with tenders, and espe-
claliy the transition from the horse
drawn cars 10 cable and underground
electric motive power. without the in
tervention Of the overhead trolley in
the urban section Powerful outside
street railway interests made deter
mined effort 10 break down the Dis
trict Law against overhead wires and to
put the ugly and dangerous overhead
trolley on the city streets. Only the
fact that the local community owned
tire street railways brought victory 70
those who opposed the overhead trolley
for our city streets
Tie merger Of the tao companies
ought not 70 be dIfflcult The real merger
problem was solved when a dozen or
more lines. all Improbable but two,
vere merged IN the Washington Rail-
way 4, Electric Co. and two lines, one
urban ard the other suburban, were
merged In the Capital Traction Co.
The merger u the two systems has
beer delayed by the n1sneuyering Of
each 81 the two companies 70 effect q
consolidation at time and IN q man
ner which Rfll bring maximum Of
profit n Itself In past years flfst one
company and then the other has had
the advantage and has pushed for i'm
mediate merger. tns other resisting.
Tne danger 10 the community, against
whlcn & should b. ssfegusroed, Is that
wnea The companies agree 70 merger
ualea ia satisfactory 70 them Doth u
snail be found unsatisfactory v thf
community, whose Interests are prt-
marty N be projected
Merger should bring - the community
better service with benefits IN fafe-rate
az1ng resulting from economies Of oper-
atlon u should yielo " the combined
companies unqQestloned occupancy ~
ire local neId u operations with Tar
profit based upon q reasonable valuation
of property The present. proposal sno1io
~ sJ4cle1 ane actec upon ny Congfehs
azgn lhfse objects IT. Vlew.