Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-02-05
MERGER FAVORED
BY SENATE BODY
Ordered Reported Out in
Same Form as Recommend
ed by Subcommittee.

The street railway merger resolution
was ordered favorably reported by the
Senate District committee today in the
same form in which the special sub
committee recommended it several
weeks ago, and without the Blaine
amendment seeking to establish the
prudent investment theory of valuing
local utilities.
In addition to voting against includ-
ing the investment proposal, the COM
mittee also rejected several other
amendments dealing with the handling
of the depreciation reserves of the COM
panies, the length Of the franchise
rights, transfers between street cars
and busses and an amendment which
would have made reduced fares for
school children compulsory instead OF
discretionary.
Although the committee voted down
all amendments that were proposed at
nounced that they reserved the right TO
take a different view toward these
amendments when the question Is taken
up In the Senate and debated. This was
particularly true with regard to the
Blaine prudent investment proposition.
Essential Points Reported.
The resolution as fayorably reported
authorized merger based on the fol-
lowing essential points:
All reference to a fixed valuation
of the property eliminated; a provision
for new valuation to be started i'm
mediately following the merger and to
be completed in two years; no change
in existing carfare during the two years
the property IS being re-valued; free
oil ctraot no liV11C
beginning Immediately, but with the
question of transfers between cars and
buses left to the discretion of the
Utilities Commission: question of re-
duced rates for school children author
ized in the discretion of the Utilities
Commission; companies relieved Of pay
ing salaries of crossing policemen. and
a reduction In the expenses of the
companies for paving between car
tracks
Senator Blaine, Republican, Wiscon-
sin, author of the prudent investment
valuation amendment, will file minor
ity report. Although the committee
voted against including this proposition
in the merger resolution. several of the
Senators emphasized that they were
not necessarily opposed to that prin-
ciple of valuation. Chairman Capper
said he was favorably disposed toward
the prudent investment principle, but
indicated he preferred to have it con-
sidered on its merits as an amendment
to the utilities law rather than in the
merger resolution. Senator Jones, Re-
publican, Washington, also indicated
that he may take different view to-
ward the amendment in the Senate,
although he wanted to vote to report
the merger resolution as recommended
by the subcommittee.
Senate Action Indefinite.
Although the merger legislation will
be reported to the Senate within a day
or two as the result of the action of
the committee, there is no certainty as
to when the Senate will be able to con-
slider 1t, and If the Blaine prudent in
vestment amendment develops con-
troversy on the floor, it is regarded as
doubtful as to whether the merger can
be acted on this session.
Senator Vandenburg, Republican,
Michigan, Is in favor of the merger
going through as modified by the sub
committee, but he declared in the COM
mittee today that as much as he is in
favor of the merger. he will have to
oppose its consideration by the Senate
until that body takes action on pend
ing legislation to provide for the next
decennial census and reapportionment
of the House of Representatives.
The first amendment offered by Sem
ator Blaine at the committee meeting
provided that the accrued depreciation
reserves of the Capital Traction Co.
q