Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-02-25
MERGER FEATURE
WINS ENDORSEMENT
OF UTILITIES BODY
Continued from First Page.)

vigorously denying SUGGESTIONS tnat
under the merger the street car riders
would have TO pay more for traction
electric power. Mr. Wilson said: III
this merger be rejected do not say
this as n thrcat--you will have an i'm
I'm not saying you won't have 1t under
q merger. am saying that the
! economic savings Of $l,000.000 will
| obviate the need for an increase and
ii will be possible 10 give far better
! service
! II an increased fare becomes nee
essary under merger. II would be
! slight AS compared with what you
would otherwise have. and would be
gradual" he added
Mr.. Wilson secuted the thought that
under merger the new company would
! take the BUSES off the streets by in
Sl>llng that as II is necessary to obtain
! relmlsS!on OF the Public Utilities Com
! mission 10 put on new buses. SO it
would be necessary 10 secure its per-
mission TO take any Off.
III would be as impossible to drop
| the Washington Rapid Transit Co.
! bQsscS as 10 drop the Pennsylvania
! avenue street car line" Mr.. Wilson
! asserted. pointing out that from a
| sound TO do SO.
| Talk of forcing a merger Mr.. Wilson
! characterized as AL Dunk. unless ii
spells sound economics" Congress. he
insisted, cannot coniiscate private
| property except on the exercise OF the
| right OF eminent domain He told the
committee that he found no sentiment
, III Washington for public ownership or
pubic operation.
pIefacng his discussion before the
| Beard ~ Trade committee by stating
that the merger Is advocated on the
| theory Of teneut 10 The car-riGing pub
lie. Mir. Flaharty pointed out that after
the Public Utilities Commission places
its approval on the plan ii must re-
celve the Endorsement of the STOCKHOLM
ers involved and OF Congress The most
tangible promise. he said. is for free
! transfers. but that there was no aSsur-
ance that the car fare would remain
the same OF be lowered and there Is no
guarantee OF the type of service to be
rendered.
Mr.. Fleharty pointed out that the
new company would have relief from
the special taxes involving traffic cross
ing policemen and paving. amounting
to some 100000 during the past year.
and relieving the car companies from
this will have TO OF made up by gen.
cral taXaticn.'
Urges Citizens tc Act.
Mr. Flehar,y said that lit behooveS
the citizens 10 get their views before the
Public Utilities Commission" on this
subject An increase in fares may fol-
low. with or without G merger, he said.
but added that he did not wish 10 be
40 II
increase. In answer to questioning, Mr..
Fleharty said he looked for extension
OF bus rather than trolley service in
the opening up OF new lines. The policy
Of State commissions, he said. has 0een
to protect companies from competition,
as Is contemplated under normal condi-
tons by the merger plan.
The peoples counsel called attention
TO the point that Mr. Wilson has pro-
vided in the plan for congressional APP
prevail for a metropolitan area for
Washington 10 be administered by the
Pubic Utilities Commission Of this city.
Mr.. Wilson INTERCEPTED to explain that
the Maryland Utilities Commission
would accept the views OF the local
commission under the PROPOSED law. de-
claring that Congress will be asked TO
broaden the powers OF the local
commission.
Congress has the power to exercise
this authority. If ii chooses TO do So"
MFR. McAdoo explained.
Discussion then turned TO the QueS-
ton OF valuation. and in answer TO a
question from jesse G.. Adkins. chair
man. who Is also president OF the Dis
trict OF Columbia Bar Association, Mr..
Fleharty declined TO express an opinion
on the fairness OF the $50 900 900 in
itial valuation for the proposed Capital
Transit Co. at this time.
Defends fractions Earnings.
MIR. Wilson took issue with Mr.. Fle-
harty's statement that the Potomac
the Washington Railway &, Electric Co.
insisting that the latter concern is
'sclf-s,lssaining.
"A merger is desirable" Mr.. Wilson
said. washington has very excellent
service under the circumstances, with
the property as IL is. To have three.
transportation companies in the Dis
trict OF Columbia is perfectly r!dicu-
lous There Is an economic waste OF
over 81 900 900 year. The service Is
rather indifereni-it is system OF
cuI de sacs leading nowhere. due to
duplication"
IAN increase in fare would find no
public favor" Mr. Wilson said during
the course OF this discussion.
Mr. Wilson then got back on the $50
900 900 valuation angle OF the merger
plan ard Informed his audience that
the sl2 900 600 difference in estimated
valuations is not too high a price To
pay for better public relations" He
added that Iii isn't in the cards TO
earn per cent on a valuation OF s62,-
600 000"
"Wiiling to Pay Decent Fare"
1.-THE people Of Washington are fully
willing 10 pay l0-cent fare Tor flrst-
class service" he said. but / see no
occasion for an increased fare here.
There is an economic loss OF 81 .00o. 600
that can be saved
The center of interest then focused
on the relationship between the Poto-
mae Electric Power Co. and the WASH
ington Railway a. Electric Co, and the
status under the changed conditions
Mr. Wilson denied that the new trans
portai.on company would have to pay
more for power than does the Washing
ton Railway IL Electric Co. as the plan
provides that no higher sum shall be
paid He insisted that the power firm
would get no more for It's electricity
than IL is now getting.
M. McAdoo said that electric light
! consumers In Washington are getting
. .heir power cheaper than any city In
! the country where electricity is manu-
taf:ured by steam.
| In closing the discussion. Mr Wilson
/ said tina, franchise of this character
/ should be- perpetual. BE the present
ones are.
| lxuds Free Transfers,
| The most tangible benefit held out
/ 70 the public by The terms 0f the plan
/ Is tfe promise u free transfers be-
! tween connecting portions III street
railway lines" said Mr. FiehartY in his
: tatx agfF WSHE "EarA,. tra,sAf.rs from