The Washington times., 1928-12-07
Merger Agreement in Congress
Shot Full of Holes
Remarkably Convincing Report to Senate District
Committee on Weak Points in Proposition.

TTNLESS Washington streetraway magnate favoring the
~ streetaway merger agreement before Congress make
drastic concessions legislation that subject doomed al
this session and for long time to come
The merger pan prepared by the companies and approved
by the Public Utilities Commission for submission to Congress-
literally pieces by masterful report of DR. Milo
r. Maltb whose analyses of every feature procalms MS
intimate familiarity with all phases of public utilities questions
Much this able and convincing report bears out the
editorial attitude of this newspaper notably in the ecommen
daions that valuation figures should be named IN the
merger plan be left to the future
is unusual for merger agreements to specify valuations
upon which made Certainly it is unprecedented
and unwse The Times has often pointed out, that
valuation like $50000OOG should have to stand without
alteration for years. practically taking from Congress
and the Public Utilities Commission for that length of time
their powers to fix valuations and fares.
Serious objection by the New York expert
acua provisions of uncaton protecting the company
against competition public should preserve its power
authorize forms of transportation Nobody knows what
the future may bring in transportation changes what
public welfare may require
There conferring. by law actual monopoly
The Public Utilities Commission may do that policy but
its actions binding upon Congress in the future
would be the noncompetve clauses in the agreement.
The true value Of the properties of the streetalway
panies and the bus companies unknown this Court
$500000o0 merger plan, out of virtually
useless Actual values could only time
lines have deprecated in value since the decisions
DR. Maltbe is confident the local courts had been
given the full facts their valuations street railways
would have been millions of dollars less than allowed The
court records he charges incomplete defective and
unsatisfactory from the standpoint public protection
Gone over again. the railways would get valuations
then given them
is true that inventory these railway properties
mas been made for eleven and that then huge
changes have taken place in prices construction methods and
IN street railway operation.
Dozens Of objections merger agreement are gone
INTO clearly by Dr. Matb who uses crushing facts and
not theories His handling of the subject will achieve most
valuable results for the public when street
railway consolidation is approved by Congress
The street railway situation such that the owners
Of the lines will be compelled for self preservation to
merge They are treadng dangerous ground so long
As they remain a they are
The merger plan before Congress is solely
Their oOn, framed by them, and designed to qiUe
peued 10 make concessions take the consequences
Congress tOfu not place $4,000, 900 UnIuntion on
properties not inUentoried for many years. 1t Uiu
rot accept as permanently binding Ualu0tions
based on Inventories Wholly out of date.
congress LULU not agree that 900 600 UdLuution
shall bind that body, the P. u. C., and the Wash
tngton public for ten years 1t probably approve
merger which WU forecast a UaIuotion of the
consoLId0ted properties uOith fares be determined
after reUoLuation.
Congress I0iU numerous other changes in
merger measure and UOu doubtless refuse to enact
INTO LaW provisions giving the merged concern an
ABSOLUTE MONOPOLY all future trdnsporto-
tion methods here. 1t may believe such a monopoly
- '0se noW, in the interest of all concerned, but
u not going giVc by lauD something that cannot
be taken dUdy later, + desires.
Once gUen, monopoly becomes Uested rights, pro-
tected BY the courts TO the fullest extent.