Evening star., 1928-04-27
MONOPOLY
SEEN IN MERGER
w. A. Roberts Pleads for Re-
valuation Before House
Committee.

Complete monopoly Of transportation
and electric power under the traction
merger agreement was charged by VIII
liam A. Roberts Of the Federation of
Citizens Associations who appeared be-
fore the House District committee to-
day TO plead for revaluation OF the
companies before acceptance OF the
proposed $4,000 900 rate base.
I'VE are not trying to defeat the
merger" Roberts declared, we are only
trying TO correct it,"
Mr. Roberts pointed out the danger
of IAN effective monopoly OF mass trans
portation under the agreement, ex-
planning that while the federation does
not want competition, 1t believes theFe
should be a preferential monopoly m
stead Under the merger plan. ne
warned, there is nothing to prevent
all the bus lines and even taxlcap COM
panies from being included at some
future time.
AssailS Limitation.
Assailing the year limitation
under which the present fares would
continue, Roberts declared It would take
at least three years for the Public Ulli~
tiles Commission TO determine with any
degree OF accuracy what would be q
fair rate as a result Of economies ana
other savings under the merger plan
The federation has no objection 10 a
$50. 600 900 rate base for merger pur-
poses only. he declared. but II is OPP
posed to using this valuation as basis
for determining street car fares.
We ask for revaluation. he said.
Pointing out that the Supreme Court
has not yet passed on the Capital Trac~
ton case used as the basis Of compata-
ton under the agreement, he said the
valuation issue should be carried, II
possible. to the highest court. In that
event he assured the committee there
would be mo kick from the public" II
the valuation should eventually be
placed above $4,000 900.
Danger Of monopoly Of power by the
North American Co. in event the
Potomac Electric Power Co. should de-
yelop power at lower rates at Great
Falls was held out by Mr., Roberts. who
recommended that the power claims In
the agreement be amended so as TO
prohibit purchase OF power for resale
by the new traction company.
Held Advantageous.
Representative Reid OF Illinois con-
tended this would be advantageous 10
the company as 1t would increase their
earning. but Roberts insisted the rates
for power should be determined by the
Public Utilities Commission AS in the
case of other users Referring 20 the
potential source Of power at Great
Falls. Roberts declared II the plan now
proposed In Congress IL put through.
no firm but the North American Co,
which controls the Potomac Electric
Power Co. through the Washington
Railway ~ Electric Co, would be able
TO procure power protitably on the
Potomac.
Failure Of the merger agreement To
provide a concession in fares for school
children was assailed by Roberts, who
declared this provision existed In most
other cities.
The federation Is not opposing re-
lief Of the companies from paving and
crossing police maintenance, he told the
committee, but wanted 1t to be under
stood 1t regarded these concessions dis
free contribution" from the public
Mr.. Roberts was the first Of the
representatives Of the public utilities
committee OF the federation TO be heard
in opposition to the merger. He will
be followed by William Mex, Clayton.
chairman OF the committee.