Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-06
Merger Is the Solution.

leading part in last years efforts
to bring about o merger OF the
street car and bus companies bear out
conclusion that has become more
apparent with the progress Of the hear
ings on the corporations applications
for higher fare. That is, that merger
offers the only permanent solution OF
Washington's muddled transportation
problem. The sooner merger is agreed
upon and made effective. the better
1t will be for all concerned.
These interviews serve to emphasize
another significant fact. Anticipating
! a renewed proposal for merger. the
Senators who must take the major part
in its consideration are preparing them
selves by studying the Public Utilities
Commissions rewritten agreement.
which must await the corporations In
dorsement before 1t can be placed be-
fore Congress. Already committed to
the principle of merger, these Senators
are examining details with q view to
expediting as much as possible the
steps necessary to obtain congressional
sanction. No one can foresee what pit
falls on Capitol Hill may be waiting 70
intercept a new merger agreement.
There can be no definite assurance that
legislative delays will not further pro-
long the thus far futile efforts Of the
companies to merge. But developments
point clearly enough to the fact that
the street railway corporations must
drop their obstructive tactics and take
action to begin the preliminary negoti-
atoms that will pave the way to definite
and final action on merger.
These preliminary negotiations lie In
answering the Public Utilities Commis-
sion's queries concerning the rewritten
merger agreement which the commits
sion has said it would approve. If the
companies approve that agreement it will
be submitted promptly to Congress IN
December, and the indications are that
it will be favorably received. If the
companies do not approve certain fea-
lures of the rewritten merger they may
contest them with o view to reaching
q compromise before December.
The companies efforts to obstruct
merger by refusing to link 1t with the
question of higher fares, and their pro-
posal that Congress should relinquish
its control and delegate Its power Of
approving o merger agreement to some
other agency, are not based on sound
reasoning and are, therefore, not con-
vincing.
How closely merger Is related to the
question Of higher fares has been DEM
onstrated throughout the hearings, now
about to close. Testifying before the
Senate committee on the old merger
proposal, President Hanna OF the Capt.
tai Traction Co. stated that the merger
would save the companies, in round
numbers, about q million dollars. Testi-
flying before the Public Utilities Com
mission, the company executives nave
stated that the higher fare they are
asking would bring In additional revenue
of about million dollars, the amount
depending, Of course, upon the public's
decision az regards buying tokens or
paying cash fares.
Now, II q million dollars is involved
either way, Is it not more logical TO
attempt to save this million dollars
through merger than to extract an adj
ditional million from the pockets OF
the street car riders, who must still
contend with all Of the inconveniences
of separate management that would
be saved them through unified manage
ment and operation?
Last year the companies were con-
tending that merger was the alterna-
tive to higher fares. That shoe now
fits the other foot. The companies
should be told either to merge or TO
continue operation on the existing rate
Of fare.