Evening star., 1928-04-24
DOUBTS MONOPOLY
IN MERGER PLANS
Utilities Official Believes Sub
way Could Be Built by
Outside Parties.

Looking forward to a Washington of
more than 100000 population, Col.
Harrison Brand. jr., vice chairman Of
the Public Utilities Commission, told
the House District committee today that
in his opinion monopoly Of transporta-
ton in the proposed traction merger is
not so complete as to prevent outside
parties from constructing subway to
relieve traffic congestion IL the consoli-
dated company should refuse TO do so.
Col. Brand said he had not studied
the legality involved to an extent that
he could say so positively. but he ex-
pressed the belief that the District
Commissioners would be free to award
such contract TO some one other than
the merged company II conditions COM
pelled such action. In event a subway
or some other such extension is needed
to keep pace with the growth of the
city. the commissioner believes that the
merged company should be given the
first opportunity TO pass on the question
of construction.
Discusses Subways.
Referring TO the doubt that exists as
to the legal right of the commissioners
to go outside in obtaining the construc-
ton OF the subway. Representative Glib
son OF Vermont remarked, IF they can't
do 1t. the situation will be pretty we'll
bottled up"
Col. Brand declared that a subway is
a very serious question because of the
cost and doubtful remuneration, and
added that in most cases where they
had been built the work had been taken
over by the cities
The question arose when Mr.. Gibson
asked II the agreement contemplates a
monopoly of transportation here. Col
Brand replied that 1t would not be
complete monopoly because OF the In
terurban bus lines in existence Leaving
out the bus lines he quoted from the
joint resolution authorizing the merger,
which declares that the Capital Tran
sit 90. shall be reasonably protected
against competition with a'-y of its
street railway lines or bus lines, or
other forms of transportation by the
Public Utilities Commission OF the Dis
triet Of Columbia"
Harley p. Wilson. a director in the
North American Co, owner OF the
Washington Rapid Transit Co. and
sponsor OF the traction merger. attended
the committee hearing today for the first
time. He appeared after the hearings
had been In progress and remained
throughout the brief session.
Valuation Plan Probed.
Most of the questioning today de-
veloped about the methods Col. Brand
employed In arriving at the $50, ,000, 900
Na
turblng question OF its effect on the rate
OF fare.
: While committee members freely COM
on the proposal for the city TO
pay 100000 involved in the relief OF
the car companies from paving costs.
they declared that their questioning
should not be construed as being an
tagonistic to the merger plan, but
merely as seeking as much light as pos
sible on all questions entering INTO IL.
Representative Hammer of North Caro-
lima. one OF the Democratic members,
who has criticized features OF the agree
ment rather freely, said the advantages
os q merger are so greRt that he was
could
MIR. Hammer, however. made the sug- |
seStion that the l0-year limitation ON |
he $50, 90 valuation, which the COM |
had agreed was an estimate.
should be done away with, perhaps, and |
he merger plan referred 10 the Inter- |
.tate Commerce Commission for a pres |
.nt-day valuation of the properties.
Col Brand met questions regarding |
IN increase In fares under the proposed |
laving In paving maintenance by a re- |
1eated declaration that IN all probabili- |
" the savings to the company would |
put of a higher fare for longer time. |
"As matter OF fact" he added, |
John II. Hanna OF the Capital Trae- /
ton Co said he was going 10 ask |
fOr All Increase In fares since last /
August. but had put It on only because /
II the merger negotiations" Col, Brand
estifled
Mr.. Gibson asked numerous ques-
ions about the paving maintenance
md brought out from Col. Brand that
lhe cost 10 the companies has been
approximately 100000. rs near IS
'ould be estimated.
Paving Costs
Col Brand said he believed II was
nequitAhle 10 exact the whole pay
nent from the car companies. but Mr.,
Gibson contended that such was now
he law,
THE point is" said Gibson, "you
Ire overriding the prevailing law IN
his matter" Col Brand declared the
agreement merely recommends that the
BURDEN be shifted to the taxpayers,
That the public would hentlt 20 the
'xtent of 100000 by elimination of one
ent transfers IN the agreement and also
o q slight extent by relief from the
OF paying two fares In certain
asses was brought out by MIR Gibson.
1eductlng the 500 900. he said. the pub
10 would Still be saddlud with an addi-
ional burden Of $4,000. all Of which
would accrue through the railroad
Thia $aa0. 900. he pointed out. repre-
ents 4 per cent ON $a,000,QoO, which
would take care Of a part of the $is,~
100 900 In valuation surrendered by the
'ompanleS In accepting the valuation
lasn ~ written IN the agreement,
because tomorrow Il a regular meet
ng day for The committee the hearings
we're adjourned until lOap o'clock
morning
,eVeF Waited Secretary Fall but once