Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-20

tContlnued from F7rSL PaSeJ
venience and necessity, in view Of other
opportunities of the companies, legts-
lative action Of the commission in re-
fusinR to grant the application OF the
companies would receive the sanction
and approval of the courts"
After citing several court decisions to
support his contention, Fleharty said:
1T is submitted that in view of the
uncertainty that granting of the relief
asked for would afford any substan-
tial or permanent benefit to the COM
panies, and in view of the questions
raised herein concerning the desirable
ity Of valuation of the properties and
the possible resulting economics OF uni
hcation by merger or otherwise, 1t
would be a perfectly reasonable exer-
else of such discretion on the part OF
the commission to refuse the applica-
tions of the petitioning companies.
Such an exercise of discretion could
certainly not be said to be arbitrary or
unreasonable and would therefore re-
ceive the sanction of the courts"
In recommending a revaluation of
the street railway properties. Fleharty
pointed out that 1t is generally felt
that a lower valuation than now exists
will result and that the public never
will be satisfied until the commission
takes such action. Moreover. he de-
clared, a revaluation would he worth
while II for no other purposc than to
afford a. sound basis" for the writing
of any new merger agrC .ment.
Citing the marked reduction in pas
sengers carried by the street railway
lines In the period from 1919 to 1928,
inclusive. Fleharty declared that lin the
light of the drastic and steady down.
ward trend in street railway trarispor.
tation, It Is questionable whether any
action should be taken that might
accelerate or even perpetuate the loss
of revenue passengers. Illogical
though it may be-" he added many
people will take more expensive means
of travelling to and from work in order
to keep from having to pay increased
car fare. other people will avoid pay
ing an increase by walking, at least
occasionally"
Although a merger may not be the
panacea for all OF the ills of the street
railway companies, Fleharty said 1t
Is certainly the means Of alternating the
complaints Of the public in the way of
service and Of giving opportunity for
the saving of considerable money now
waStefully expended because of the
operation Of two competing street rail-
Bey systems,
1.-THE problem of an agreement ac-
cepeable to the companies and the pub
lie" he said, ought not to be difficult
one. Mergers of much greater magni-
tude, both as to size of companies in
volved and difficulties of accomplish
ment, have been consummated many
times in the United States. The time
is ripe for the companies to make a new
agreement and submit 1t to the Public
Utilities Commission. II the right kind
of an agreement Is submitted, that Is,
one that is fair both to the companies
and to the public, there Is no question
that the stamp OF approval will be
given by the commission and Congress.
The companies have stated their dis
inclination to open negotiations until
Congress grants authority to somebody
to give final approval to an agreement.
In taking that position the companies
are side. STEPPING their plain responsible
ity. Failure of the old agreement should
not be given as the reason for MONACO
ton in the creation of a second, or even
third agreement.
III the companies fail to act on a
merger plan, 1t is believed that they will
forfeit public good will and will keep
from the public something that inher-
emily goes with a good public utility
franchise-the lowest possible rates
consistent with the right Of the COM
panies in the way of fair return and
consistent with the furnishing Of the
best possible service.
There is clear responsibility on the
part OF the companies. II they will ar-
gressively and sanely assume that re-
sponsibility they will provide for their
own financial dif1culties and render bet.
ter service than is now possible and at
more reasonable rates than now are pos
siole. II they will not assume that re-
sponsibility. they will fail to perform a
fundamental obligation imposed upon