Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-23
Higher Fares With Merger.

Inc stipulation IN the proposed merg-
er agreement now before Congress to
the effect that present rates of fare"
as Of August /, 1929, shall remain in
force for two years after the merger
becomes effective is now disclosed as one
ny in the ointment that has offended
the delicate sersibilities of the street
railway corporations.
The Senators last night who heard
pro and con arguments on the new pro-
posal for merger were told in no uncer-
tain terms by spokesman for the rail-
ways that an agreement continuing in
effect existing rates of fare is impos-
sible. "Insurmountable obstacle" was
the apt description supplied by one of
them.
A public already confused by the
about face on merger assumed by the
companies since their petition for higher
rates Of fare will ind more food for
thought in the present determination of
the companies to have their cake of
higher fares and eat it, too, through
merger.
One Of the chief arguments for
merger throughout the protracted discus
sion Of the subject has been the econ
omies resulting from single operation
through physical and corporate merger.
And last year, at least, tempting NOR
sci was offered by the companies in the
thought that their own proposed merger
was presented as an alternative to
higher rates.
1t now develops that higher fares are
to be expected as the natural accom-
paniment to merger. Arguing against
the proposed agreement for continuation
Of the existing fares for two years, Mr..
Ham told the Senate committee last
night that track changes would be neces-
sary to bring about anticipated econo-
mics under merged operation, that these
had to be paid for and that the finan-
cial condition Of the new company
would have to be such as to attract
needed new capital.
The financial condition of the COM
pany, apparently, must be strengthened
by additional contributions from the
carfare-paying public.
These facts raise the question Of what
tangible benefit, If any, the public may
expect from . merger Of the two railway
lines. During the hearings last sum
mer before the Public Utilities Com
mission, counsel for the Capital Trac-
ton Co. declined to go into a discus
sion OF the possible savings to be exc
pected through merger on the ground
that such savings we're hypothetical,
speculative and conjectural. While Com
missioner Hartman estimates such saw
1ngs as being at least 100000 q year,
the railways look upon them as being
based on conjecture. They want the
tangible assurance that lies In power
to extract more pennies from the car
riders.
If there Is to be higher fare with
merger, If economies under merger mean
nothing to the companies, what good Is
there in merger for the public? Free
transfers, through rides and lower fares
for school children are possible crumbs,
but the companies are intent upon the
jucier pie that lies In higher fares.
The traction companies should be
merged to prevent the wasteful conpe-
tition, inconvenience and double over
head now paid for by car riders. The
actual savings from the merger should
be shared between the corporations and
the people they serve by better and more
convenient service at existing rates.