Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-20
Commission Without Power
to Effect Consolidation,
He Declares.
SUGGESTS CONGRESS
DELEGATE AUTHORITY
w. r. & E. Head Makes Objections
to Some Questions Put
While on Stand.

PRESIDENT William F. Ham OF the
Washington Railway & Electric Co., at
the car fare hearings this morning, told
the Public Utilities Commission that
he regarded it as useless" to negotiate
with the commission for a merger of
the two street railway companies in
Washington, so long as the commits
sion has no authority to give final ap-
proval to such merger. He suggested
that the remedy would be either for
Congress to clothe the commission with
authority to approve merger or to
set up body Of its own for that pur-
pose.
This statement was made by Mr.. Ham
after Col. William B. Ladue, Engineer
Commissioner and a member of the
Public Utilities Commission, had hand
ed to Mr.. Ham on the witness stand a
copy Of the proposed merger agreement,
drawn up by the commission and the
same that was shown to John H. Hanna,
president of the Capital Traction Co.,
last Tuesday. Col. Ladue prefaced this
action by asking Mr.. Ham whether he
thought it was the duty of the commits
sion to do everything in its power to
improve the street car service Of Wash
ington.
YES" replied Mr.. Ham, ct think it
should do everything it can do under
the law. But the commission has no
power to go beyond the law"
Objects to Question.
After Col. Ladue had handed the
proposed agreement to the witness he
asked him whether he or his company
would be willing to become a party to it.
II do not think this question is a
proper one to ask me on the witness
stand" replied Mr.. Ham.
Mr.. Ham said however, that he was
willing to answer the question to the
best Of his ability. He then read from
the letter of the company of July
Is, 1929, in which it was stated by the
company that any merger negotiations
at this time would be OF doubtful
utility"
william NICK. Clayton, public utili-
ties chairman of the Federation of Cit
liens Associations. asked whether this
letter had the approval of the COM
pany's board of directors.
mot ofhcially." answered Mr. Ham,
"but Of the Is members gave 1t their
approval and it has mine It is safe
to say that it has the approval of the
board"
Attitude Toward Merger.
In response to another question by
company toward renewed negotiations
for merger, Mr.. Ham said:
Il do not see how you can reason
ably expect this company to negotiate
when there is nobody to negotiate with.
Congress has the power and the only
power to approve merger. 1t is poor
business to go before one body and get
beaten down and then have to go be-
fore another body so that you can get
beaten down further
Commissioner Harleigh H. Hartman
interrupted the witness to ask whether
he thought the commission was "try-
ing to beat you down with this agree
ment.'
With all due respect, I haven't read
the proposed agreement" replied Mr..
Ham. IT have been too busy preparing
for this hearing. If we are to wait
around for Congress to do something
nobody knows what think the COM
mission will be remiss in its duty"
At this point Gen. Mason M. Patrick,
chairman of the commission, said that
three things were necessary to bring
about merger of street car companies
IN Washington. namely, first, an agree
ment between the two car companies:
second. approval by the Public Utilities
commission; third, approval by Con-
gress.
Patrick Asks Question.
"If the two car companies" asked
Chairman Patrick, could agree now on
a merger and if this commission should
approve 1t. with whatever changes
might seem advisable, would that not
be a decided step toward a merger?"
This is not the proper place to
answer that question:" declared Mr..
Ham. I'VE believe the present machin-
cry is inadequate. We believe additional
legislation is needed by Congress be-
fore any good can come from further
merger negotiations. 1t might even be
better for Congress to negotiate a mer-
ger through one of its own committees
sion out of it."
Col. Ladue remarked that nothing
could be done that would nullify exist
ing law.
This commission can never know
what Congress will do" continued Mr..
Ham. but a committee of Congress
might have some idea what Congress
would do. What is the use of negotiat-
ing merger agreement with this COM
mission, when the commission cannot
get it through Congress? The commits
sion approved the last one and could
net get 1t through Congress.
Il don't know what machinery Con-
greSs may set up, but it alone has the
power"
do you believe the commission should
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