Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-21
Delaying Merger Negotiation.

UelaylnS merger NeSoCldIlon'
Talk of transferring to the Public
Utilities Commission or to some other
agency the power to ratify merger
agreement-a privilege jealousy guard
ed by Congress-is altogether pointless.
It promises nothing in the way of prog
rcss toward merger. 1t appears to be
a herring drawn across the trail and an
attempt to delay, rather than to ex-
pedite, the preliminary steps necessary
before corporate merger and unified OPP
Grafton of the car lines are possible.
In the first place, the process of ex-
tracing from Congress the power 1t
holds to approve merger of the car
lines and of persuading Congress to del
egate this authority to some one else
would require an endless amount of time
and effort. It Is extremely doubtful If
the effort could be undertaken with any
promise of success. Congress reserves
the right to legislate for the District of
Columbia. There are no indications
that Congress feels inclined to surren-
der a part of this right, especially with
reference to such an important subject
as merger of the National Capitals
street railways.
In the second place, If Congress could
be persuaded to delegate its power of
approving a merger agreement. 1t Is
questionable whether such a procedure
would be to the best interests of the
people of the District. The flaws in the
last merger agreement became apparent
under the careful examination of the
committees Of Congress, especially the
Senate committee. Had the former per-
sonnet Of the Public Utilities Commits
sion possessed the final authority to
approve the street railway and bus COM
pany merger proposal, there, would prob
ably have been merged operation of the
lines today. But subsequent develop
ments showed clearly enough that there
were dangers to the public inherent in
the original merger proposal, against
which there were no adequate safe
guards.
Washington is fortunate in having
Public Utilities Commission now that
gives every evidence Of being prepared
TO protect the interests of the public.
But this personnel is not permanent.
Circumstances might change it over
night. If there were a President In
the White House more interested In
patronage than in selecting the most
capable men to serve the people of the
- 10 hot 10 n q
weak commission with extraordinary
powers are readily understood.
On the other hand, Congress has out
lined the procedure toward merger.
First the companies, through negotia-
ton, may prepare a plan. This plan
Is submitted to the Utilities Commission
for its approval and then sent to Con-
gress. Last year that process, it is true,
resulted in failure to obtain a merger.
The extensive examination of this first
plan and the changes that were made
delayed final consideration in Congress
too long, and the merger was lost. But
the groundwork, nevertheless, was pre-
pared.
The new Public Utilities Commission
has taken the old agreement, made
changes In 1t that it considers neces-
sary, and has asked the companies to
state their objection or approval. If
negotiation among themselves and the
commission results in approval, Con-
gress will have a definite plan to con-
slider when it meets in December There
is every reason to believe that its con-
sideration would be favorable.
The attitude adopted by the COM
panies, that discussion of merger is flu
tile so long as the Public Utilities Cotn-
mission has no authority of final $p-
proval, is unsound and insincere. the
companies have said that merger is de-
sirable and that they want to mefge.
The Public Utilities Commission mas
pointed out the sensible way of going
about 1t. 1t is more direct than any
proposal for changed procedure that
has come from the companies spokes-
men, intent now on getting higher
fare.