Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-01-31
Senate Committee Adjourns
Until Next Week After
Hearing Arguments.
MORE CHANGES SOUGHT
BY LEGISLATIVE GROUP
Peoples Service Representative
Doubts Advisability of Action
at Present Session.

After taking testimony for four hours
on the street railway merger plan. in
the course Of which a number of addi-
tional amendments to the modified
resolution were advocated the Senate
District committee closed its hearings
this afternoon and adjourned until
next week to take final action.
Chairman Capper said 1t probably
would be Tuesday before the committee
would meet again to go over sugges-
what form the merger legislation should
be reported to the Senate
Spokesman of the civic and trade or
carnations of the city generally ia
vored action to bring about a merger
at this session. The hearing was
marked by considerable debate. how
ever, as to whether the Blaine amend
ment. seeking to establish the prudent
investment theory of valuing utilities
in Washington, should be made part
of the merger resolution or acted upon
by Congress as separate proposition.
Clayton Suggests Changes.
At the afternoon session William
NICK. Clayton of the utilities commit
tee of the Federation of Citizens Asso-
Citations advocated the following amend
ments: A congressional charter instead
of the provision now in the merger
resolution permitting incorporation OF
the new company under the District
code; universal free transfers between
cars and buses instead Of between
street cars only; reduced fare for school
children, and provision for the carry
ing forward of the accrued deprecia-
ton reserve of the present companies.
John H. Hanna, president of the Cap
ital Traction Co., told the committee
that in providing for incorporation un-
der the District code. the companies
We're following the program laid down
by Congress in 1925. He said that many
of the requirements and obligations of
the original charter have already been
carried over to the existing utilities law
and that it would be difficult task to
begin now to draft new charter for
the merged company because of the
shortness of time.
As to free universal transfers and
special rates for school children, Mr.
Hanna said 1t was felt these questions
should be left to the Utilities Com
mission.
JUDI QClOIG DQSIESI y. JOlulSJOu
OF the Peoples Legislative Service ad-
vocated including the Potomac Electric
Power Co. In the street car merger. Sub
sequently DR.. George c. Havenner of the
Federation of Citizens Associations, said
that so far as he knew the federation
Is opposed to including the power COM
pany. He further stated that the fed
Grafton favors universal transfers, but
that If the injection of such an amend
nlent would jeopardize the merger, he
thinks the federation would rather have
the merger.
Among those who advocated approval
Of the merger at this session were
Havenner. Jesse G. Adkins, Board of
Trade: Harry King and Dorsey Hyde,
Chamber Of Commerce.
On the contrary, johnson said in his
judgment 1t is impossible for Congress
to effect legislation at this session
which win take care of the essential fea-
lures If it is to be fair merger.
Blaine Amendment Change Asked.
Oscar w. Hammond, speaking for the
District Federation of Federal Employees,
and John r. Newman of the Central
Labor Union both Endorsed the Blaine
amendment in principle, but requested
that IL be changed to prevent the utili-
ties commission from obtaining au-
tl1ority to fix wages Of street car en-
ployes, and urging also that the Blaine
amendment be handled as a separate
measure instead of being incorporated
in the merger contract.
Senator Blaine, In croSs-examining
witnesses, took the view that If his pru-
dent investment legislation is handled
separately its passage after merger
would render it ineffective as to the
street car lines.
Other members of the committee dis
agreed with this view, taking the posi-
resolution was such as to enable Con-
greSs to enact valuation legislation at a
later date.
Rev. John A. Ryan, who said he spoke
as citizen of the District, favored the
Blaine amendment for the prudent in
vestment theory Of valuation.
Action Now Is Doubted.
Senator Vandenburg, Republican
Michigan, asked DR.. Ryan If he thought
Congress could settle that controversial
question as a part Of the local merger
in the four weeks remaining in the
present session, and the witness re-
piled, probably not"
Senator, DR.. Ryan indicated he would
rather see the merger 60 over than
have 1t acted upon without the Blaine
amendment
Senator Vandenburg pointed out that
If that were true the District would
have an increase in fare anyhow with
out merger. The witness admitted
that probably was true.
The first witness was w. A. Roberts
of the Federation of Citizens Asso.
Citations, who suggested that a specific
clause should be inserted to define how
depreciation is to be handled. Mr.
Roberts suggested other amendments tc
specify more exactly when the new
valuation is to be completed and also
limit the franchise rights. He stated
chat he was not taking the position thai
there should not be merger II these
changes are left out.
After lawyers on the committee anc
among the witnesses had debated al
length the Blaine amendment dealine
with the prudent investment method Of
valuation, Senator Glass, Democrat, o.
Virginia, interrupted with this observa.
ton:
These lawyers are involved in 81
many insuperable difficulties that VIZ
newSpapermen and doctors on the com.
mittee may as we'll go ahead and settle
the question by following the commit.
tees expert"
DR.. Maltbie, the committee expert
some time ago recommended that thu
Blaine amendment be handled as a sep.
arate proposition.
Detailed to v. M. T..
First Lieut. Edwin B. Howard. It'll