Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-07
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AGernl,er nf fhe AssnniateA Press.
Preliminaries to Merger.

The Capital Traction Co.'S letter to
the Public Utilities Commission declin-
ing at this time to renew merger ne
gottations Is q candid and fair state
rnent Of the case that is justified by
the circumstances. It should do much
to clear away any misunderstanding Is
to the source of the next move toward
merging the railways. The next move
lies with the Public Utilities Commission,
The Washington Railway b Electric
Co. Is yet to reply to the Public Ctili-
ties Commissions letter. But its an
swer Is foreshadowed by the Capital
Traction Co.. Harley P. Wilson, repre-
sentative of the North American Co.,
has expressed In interviews substantially
the same point of view outlined by John
H Hanna, president Of the Capital
Traction. The North Americans con-
trolling interest In the Washington
Railway q Electric makes 1t pretty def
mite that the railway company will take
Mr.. wilson's and the Capital fractions
view of the matter.
II that Is so, the street railway COM
panies will put themselves on record
again as approving the form Of agree
rnent that failed Of ratification IN the
last Congress, after receiving the ap-
proval of the Public Utilities Commits
sion and of the District of Columbia
committees in both houses. Techni-
cally that agreement died when Con-
gress adjourned. And If there were any
doubts about its demise then they were
expressly removed by the wording In
the agreement setting forth the fact
that It would not bind the companies
after June last. Mr.. Hanna's letter
in effect states that the company has
no new proposal to make; that It still
adheres to the old one.
The procedure for merger outlined in
the merger act Is for the companies to
submit their proposals to the Public
Utilities Commission. which. in turn,
submits them to Congress for approval
by Joint resolution. It would seem now,
In view Of the Capital Traction letter,
that the Public Utilities Commission
may take the old agreement as the
starting point, further amend 1t or sub
NIT 1t in the form approved by the Sen
ate committee to Congress. If Congress
chooses to make further changes, the
revisions doubtless will be submitted to
the stockholders as was planned in the
case Of the changes made by the Senate
committee on the strength Of the Malt
bic report.
"The public and Congress are in pos
session Of all the relevant facts" says
Mr.. Hanna. which may be accepted as
meaning that preliminary steps toward
merger have been taken. The new per-
sonnet of the Public Utilities Commits
sion, after its own thorough study Of
these preliminaries, as set forth in the
agreement which expired June 1, can be
counted upon to follow up the prelim-
inaries in regular order.
While the higher fare application will
probably be judged on its own merits,
the proposed merger must be taken into
consideration as an important factor
having q distinct bearing on the neces-
sity for higher rates. The benefits Of
merger will accrue largely to the cor
porations, as would the gains from in
creased fare. The public can only gain
through a merger, which holds out
promise of better and more convenient
service. II any cake is to be cut, it
should be shared between the corpora
tons and the public as equally as pos
sible.