Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-30
BOARD TO RESUME
CAR FARE HEARING
Merger Plan May Be Domi-
nant Issue, Despite Trac-
ton Firms Protest.

Preparations for the resumption Of
hearings on the application of the Capt.
tai Traction Co. for an increase in fare
we're started at the Public Utilities
Commission today with indications that
a final and determined effort will be
made to mold a new plan OF merger
that will be acceptable to both the
public and the companies.
The hearings, which were recessed
September 10 to permit the commits
sion to dispose of mass of accumu-
lated routine matters, are to be re-
opened next Monday. At the very out
set of the proceedings. 1t was learned,
the commission intends to make the
merger the dominant issue, despite the
protest of the Capital Traction Co.
against the injection Of this question
into the fare case.
Merger to Be Issue.
do YOU or don't you want a merger?"
Is the question TO be rather bluntly put
to the officials of the traction companies
as soon as the hearings are resumed. II
the companies show by their answer a
sincere desire TO merge, the commission,
it was said, intends TO work with them
In developing a plan which is fair to
them and which also protects the pub
lie. Otherwise, it was indicated, the
commission will proceed on its own in
itiative to force a unification. 1t does
not propose, it was said. to pursue
''pussyfooting" policy in this respect.
The plan Of merger designed by the
commission several months ago ana
submitted to the companies for con-
sideration probably will be the basis
for renewing negotiations with the COM
panies If they show a willingness TO
proceed. The Capital Traction Co.
already has told the commission 1t
would consider this proposed uniflca-
ton agreement. although 1t contained
certain provisions which are unSatiS-
factory because they do not fully con-
serve the companys rights.
The attitude of the Washington Rail-
way & Electric Co., however, Is yet I'M
known, and Its silence has been some
what of a puzzle to the commission:
In other quarters belief was expressed
that William F. Ham, president OF the
company, is awaiting word from the
North American Co. OF New YORK,
which controls the car company, before
he makes known the company's posi-
ton.
Plans Not Revealed.
The commission has not yet re-
yealed its plan of procedure should the
companies decline to get together with
it and work out an agreement for q
corporate merger, but 1t is known that
serious consideration is being given 10
an operating unif1cation 1t could bring
about. through compulsory rerouting
and Joint use of tracks, as well as q
of the properties OF the
two companies, which would forestall q
change in fares until it Is completed.
At the commission 1t was said re-
valuation likely would take two years.
The record of the hearings on the
Capital Traction Co.'S application, 1t
was said, contains a basis for either OF
these steps. Moreover, it was pointed
out. q recent opinion by Corporation
Counsel William w. Bride removed all
doubt as to the commissions author1-
ty to order an operating unification
through q general rerouting OF the car
lines and the joint use Of tracks.
At the commission 1t is difficult to I'M
derstand why the companies are reiuc-
tant to have the merger considered IN
connection with the rate case, and why
they have not taken active steps 10 re-
open unification negotiations. BY hold
ing ont. it was said, the best the COM
panies can hope to get is long drawn
out court proceeding, which probably
will not benefit them materially, where
as by merging they can get virtually all
of the advantages they are now seeking
in the rate case, since the testimony has
shown that unified operation Will re-
duce operating expenses, aside from I'M
proving service, which will tend to in
crease the number Of car riders.
Plan New System.
Evidence in the rate case also shows,
it was said, that an unsatisfactory con.
dition exists in the accounts OF one OF
the car companies, which the commits.
sion probably will order corrected
through the establishment of new sys-
tenn. A corporate merger Of the two
companies, it was explained, would au-
remedy this situation.
The commission believes that the
path has been cleared in Congress for
the ratification of a unification agree.
ment that is fair to the companies and
protects the public interests. It feels
that should such a plan be developed
there would be no delay in final con-
summation Of the long-sought merger.
OPPOSES FARE INCREASE.