The Washington times., 1929-01-08
Fate of the Street Railway
Merger in Congress

Main Question Still Appears To Be One of Vauatio,

VI less tnan Two months legislative activity
gress the prospects of street railway merger approval
rosy but agreement issues dispute is still
possible and that would pave the way speedy action
Street railway magnates may yet make sufficient conces
sions suit the Senate District Committee The personnel
of that committee such that the interests of the people of
Washington will be protected there will be legislation
Unless legislation does give protection every way that
fair to the people of Washington should put aside
for consideration at other session of Congress-
Defective one-sided legislation will be than none at
ALL 1t goes without saying that unless legislation suits
the purposes of managers they will block passage
Congress need have fear that their big corps of able At
torneys will not get virtually everything that merger pro-
moters want
If there any okers in legislation that may be passed
the joke jokes will be on street railway owners
The public will be the goat.
The main question still appears to be that of valuation
Presumably the other issues settled by compromises
though of them are of immense mnortance Ono ~
them Senator Capper finds that the bill probably pves
perpetual franchise to the merged company and with that
franchise an absolute monopoly for all time Congress will
not sanction perpetual franchise.
Merger promoters may insist on $50 600 valuation
They DO indicate their Willingness to yield their demand
that this valuation shall stand for TEN YEARS for rate
making purposes no matter what may be the fate of street
railway transportation matter what new processes of
travel may appear matter how farreachng may be in
dustriai or economic changes in the future.
Inc Times mas vigorously opposed this tenyear provso
from the beginning The future too uncertain to- commit
the people Of Washington to pay fares yielding reasonable
returns on what experts to be excessive valuation
these street railway bus properties are ever revaud
with the public interests thoroughly represented and cared
for the courts will again allow some of the bO items
they permitted in existing valuations
The Public Utilities Commission, though excessively
endY TO corporation interests with the exception of
member will not be permitted to exhibit
throughout another valuation hearing Not only
the public but Congress will check up its work and take
action. ~ ~
Apparently there may be nothing Importance to be
gained by refusing to allow $5OO00OOO valuation in the
merger PROVIDING that valuation is not to remain indef
nitey for rate emaking purposes
The local courts would uphold that valuation now again
put before them the records they stand The Public
Utilities Commission, constituted would do the same
thing.
no valuation is fixed in merger legislation, the merged
would apply revauation and might get
larger valuation than $5OoOOoOO depending on develop
ments Congress could not deny them the right revauaon
What Washington people most is that
Congress shall shut the doors possible increased
fares here what valuation may agreed to-
That is going to be difficult job, Corporation lawyers
always have the courts to fall back upon They generally
have friendly Public Utilities Commissions to deal with too