Evening star., 1928-09-20
Hasty Action Not Necessary,
He Tells Utilities
Commission.
SUGGESTS STUDYING
OTHER CAR PROBLEMS
Peoples Legislative Council Also
Attacks Increase-Citizens'
Associations to Act.

the merger legislation, Chairman Cap
per OF the Senate District committee
today wrote to the Public Utilities Com
mission, expressing his personal view
that the financial condition Of the COM
panies does not call for hasty action,
and suggesting a number of street car
problems the commission could study
pending the return of Congress.
Senator Capper embodied in his let
ter a telegram he received from Sena-
tor Vandenberg of Michigan, also q
member. of the Senate District COM
mittee. opposing any change in rates
before the Senate concludes its inyesti-
CATION Of the merger plan.
The commission, which is about to
resume consideration of the rate case,
also received protest today against an
increase IN fare at this time from the
Peoples Legislative Council The views
OF this organization were contained I'M
letter to the commission from Mer.
Ger G. Johnston, director.
The public utilities committee of the
Federation of Citizens Associations met
last night and drew up brief setting
forth Its reasons for opposing a rate In
Grease. 1t will be presented to the COM
mission when the fare hearings are re-
sumed tomorrow.
Asks Scientific Study.
In his letter to the commission Sena-
tor Capper stated that he was not in a
position at this time to express Official
iy the view OF the entire committee, or
OF the special subcommittee handling
the merger inquiry. He added, however.
tnat ne had no heSitancy in expressing
his personal attitude, and in the closing
paragraph the Senator said he felt
many OF his colleagues would concur
IN the protest If they were here and
familiar with the general situation.
valuation and inventory of the
companies, and scientific study Of the
present physical condition Of the prop
critics are among the steps which Sem
ator Capper suggests the commission
might take while Congress is reaching
decision on the consolidation pro-
posaL The Senator's letter, addressed
to John w. Childress, as Chairman Of
the commission, read as follows.
For your information and that Of
other members of the Public Utilities
Commission quote below telegram
have just received from Senator
Arthur H. Vandenberg, member Of the
Senate District committee. and member
also OF the subcommittee appointed to
proposal:
"If Washington reports Of present
street railway fare increase are true, /
hope you win emphatically protest any
action which disturbs the existing status
pending the outcome of our investiga-
tions. Any such increase at present
would seem to be contemptuous both of
public opinion and public regulation.
ALI such action should await findings
OF present Senate inquiry
Il am not in position at this time
to express the official view Of either the
full committee or subcommittee on the
matter referred to in Senator vanden-
berg's telegram. However, have no
heSitancy In expressing to your COM
mission my personal opinion that to
grant an increase Of fares at this time
would be both unwiSe, unjuStified and
contrary to the public interest as well
as injurious, ultimately, to the COM
panieS' interests. In saying this am
fully aware that your commission Is
authorized by law to proceed in the
matter and take any action 1t sees At
to pursue, and that the judgment OF the
commission is entitled to fair considera-
ton.
Asks for Delay.
81 am convinced, however, that it
would be most unfortunate from every
standpoint to disturb existing street
railway fare rates, pending completion
of our investigation of the merger pro-
posal and until Congress has at least
had an opportunity to pass upon the
matter. AS you know, the merger reso-
luton was not introduced in Congress
until late In the last session: hearings 4
were not concluded by the House COM
mittee until shortly before final ad-
journment of Congress for the session,
and the Senate subcommittee has not
yet completed its investigation, which
has, however, been diligently proSecut-
ed and will be continued with view to
decision and action early In the next
session. Congress will convene little
more than two months from now, and
certainly the street railway companies
can afford to maintain the present sta
tus until that time. and even later.
THE questions involved In the pres
and lntricacy. There Is certainly no rea-
son for any haste whatever In passing
upon them. The financial position of
both street railway companies is very
strong. Their credit is good and they
have large reserves. The commission
would, therefore. be fully justified In
deferring its decision Of the rate case
until after Congress has had oppor-
tunity to consider the merger proposal.
The commission can. of course, in the
If 1t so desires, undertake
IN inventory and valuation Of the street
railway properties, no basic and COM
olete work along this line having been
done for ID years. The commission can
Undertake a scientific study Of the pres
mt physical condition of the property,
he question of the depreciation being
vital IN determination of value The
has power and authority TO
'ngage experts and the means to raise
unds to pay for tb.lr services.
THE commission, can, furthermore,
make very detailed and exhaustive
study of the legal and economic uues-
ions involved In the fact that there are
'wo partly competing street railway sys-
ems in the District of Columbia, only
,ne Of which petitioned for increased
'ates Of fare. The members Of the SEN
ate have In the past seriously uues-
Toned the right of the commission 10
'aise the rates Of both companies when
,nly one has petitioned for or demon-
trated need of additional revenue. FIIr.
hermcre, 1t may be altogether adyis.
tble to preserve competition both In
ates and service. In addition. q de-
allied analysis might be made of the
meet OF increasing fares both here and
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