Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-02-05

Continued FROM tlrSC Page.)
and the Washington Railway & Elec-
trio Co., amounting to nearly $1,000, 600,
should stand to the account of the new
company and made available for REIN
vestment in the property for improve
mcnts and betterment, but that at no
time could it be added to the valuation
for rate-making purposes.
More Than Hours Debate.
This amendment was voted down
after more than an hour of debate, in
which a majority of the committee
agreed with the view of DR.. Maltbie,
the Subcomr2ittee expert, who held that
since the fixed valuation Of $50, 000,0 900
provided for in the original merger plan
has been eliminated. there was nothing
to be accomplished by setting up GER
tain amount as the depreciation fund
at the present time. Senator Blaine
who supported all the proposed amend
mentS and who voted against reporting
the merger, argued that there is Moth
ing in the plan to determine what the
company shall do with the accrued de-
probation.
Blaine's second amendment was de-
signed to prevent the companies from
claiming perpetual franchise. while
provided that If Congress should repeal
the authorization at any time, the fran
chiSe rights would terminate one year
following such repeal.
Blaine Announces Alteration.
Just before the committee voted down
the prudent investment amendment,
Senator Blaine announced that he had
altered 1t to provide that the companies
could go into court following a valua-
ton to contend that 1t was conffscatory.
but limiting the court to passing upon
questions of law with regard to the
valuation.
The committee also had a lengthy
discussion over clause which was
inserted several weeks ago stating that
all OF the constitutional rights of the
companies are preserved under this
legislation. Senator Blaine argued that
the merger resolution is in the form
OF a contract and that the language
referred to might prevent Congress from
altering or amending the terms at a
later date. Other committee members
commended that the constitutional rights
OF the company could not be interfered
with IN any event whether the clause
was left In or taken out. 1t was finally
left in.
Proposed Amendments Voted Down.
The committee voted down proposed
amendments suggested at the hearing
last week to direct reduced fare for
school children and to require free
transfers between street cars and buses.
In the general debate on the merger
question as a whole. Senator Blaine
argued that the public gets only free
SLT6eE nctfv {~I a.
them $4,000 year, and a provision
against higher carfare for two years,
put glvng the companies the right to
apply Tor an increase and have its case
considered before the two years expire.
lie argued that the companies are re-
ilved or $4,000 through repeal of the
law Wnlch now requires them to pay
Tor certain street work
Senator Vandenburg took issue with
senator Blaine, declaring that there
are much greater advantages than that
Tor the public. He said the general
Dement'S OF unified operation means
more to Washington than the detailed
arithmetic in the agreement. He fur
Their declared that it is probable an in
crease in car fare cannot be avoided
If merger is not brought about and
that the saving in operating expenses
resulting from merger, estimated at
from 100000 to 81 100000 year, is the
best guarantee the people can obtain
against an increase In car fare.
Bankers Declared Opposed.
In the course of the debate, Sena-,
tor Blaine said he had received infor-
nation to the effect that the bankers
of Washington are not In favor of the
merger.
There was also brief tilt over the
question of how the Federation of Citi-
zsns' Associations stands on the modi-
fed merger Senator Blaine pointed out
that last Saturday night the federation
laid on the table motion to indorse
the modified merger. Senator Vanden-
burg replied that that action was not a
fair test Of the federation's stand be-
cause the motion was made at a late 4
hour, and In his opinion should have
l.~n,> tat ~ hn tat1Jn Gnx.a%ny 30 y,v,a,s