Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-23
COMPANIES OPPOSE
PLAN TO CONTINUE
CAR RATES z YEARS
Officials Unwilling to Tie
Hands for Definite Period,
Senate Hearing Told.
BLAINE MAY REQUEST
LOBBY PROBE ACTION
Considers Asking Inquiry Dealing
With Activity for Former
Merger Proposal.

The provision to continue presen
rates of carfare for two years loofaet
as one OF the chief points Of issue in tn,
pending street railway merger plan
when officials of the companies told thu
Senate District committee at, a public
hearing last night they were unwilling
to have their hands tied for a definite
period on the fare question, with the
District supreme Court now considering
whether existing rates are adequate.
An unexpected development at the
hearing was the intimation by Senator
Blaine, Republican. of Wisconsin that he
is considering .sking the Senate lobby
investigating committee to inquire as to
what legal services were engaged in
seeking action on the former merger
plan in the last Congress.
Senator Blaine revealed that he had
this In mind when he said it was his
understanding that one of the LAWYERS
who appeared before the committee last
year represented the North American
Co., and added that he may want to
ask some questions about that before
another committee" Senator Blaine is a
as well as the District committee.
Another Point Developed.
Aside from the fare question, the
hearing developed that the other chief
point of conflict in the deliberations viii
be whether changes in the utilities law
to establish a new method of appealing
to the courts in utility cases should be
enacted as part of the merger agreement
or In separate legislation. Several mem
pers OF the Senate committee made it
clear they were disposed to consider this
new plan Of court procedure as q sepa-
rate bill If to do so would expedite the
bringing about of merger.
President John II. Hanna of the Capi-
tai Traction Co. and President William
Z. Ham of the Washington Railway a.
Electric Co. both assured the committee
they are still favorable to consolida-
ton, and indicated they we're hopeful
an agreement would grow out Of con-
gressional consideration Of the subject
at this time.
Appearing on the public side of the
question, William Mex. Clayton of the
Federation of Citizens Associations
stressed the following proposals as the
principal changes he believed should be
made in the pending legislation: That
l0SEeA0
authorized" to establish reduced rates
for school children, that free transfers
between street cars and buses and be-
tween buses be established as well as
between street cars. that the articles of
incorporation of the merged company
be approved by the commission.
Wants p. z. p. Co. in Merger.
Mercer Johnston Of the Peoples Leg
islative Service urged that the Potomac
Electric Power Co. be required to Join
in the merger. z. C. Riegel also OBJ
1ected to some Of the provisions of the
pending plan
Chairman Capper Of the Senate COM
nittee said at the close of the hearine
he did not believe further public hear.
ings would be necessary.
Although most of the hearing was
taken up with legal debate over es-
enlistment Of a new court procedure
for utility cases by amending the
utilities law, there is the possibility of
getting over this obstacle in the merger
negotiations by handling the question
OF court procedure as separate legisla-
ton.
On the question of what the rate OF
car fare should be while the commits.
sion is revaluing the merged company
however, it appeared from the testi.
n1ony taken last night that this section
OF the merger plan will be the CHIEF
issue in determining whether a merger
agreement Is possible.
Hartman Points to Saving.
When Senator Vandenberg asked the
Utilities Commission to state its side
OF the clause guaranteeing against ar
increase. IN fares for two years, Com
missioner Harleigh H. Hartman pointed
out that the. companies will effect 8
saving of at least 100000 a veal
through merger. and that this phase
OF the situation is not before the court
In the pending street car rate case.
Mr.. Hanna contended the question
OF how much would be saved from
merger and how soon. it would begir
to show SIS matter of opinion"
Mr.. Hanna and Mr.. Ham both ex
pressed confidence they could establish
that the companies are not earning
reasonable return now in accordance
with the highest court. decisions
Mr.. Ham testified that to fx any def
mite time for continuation of preSen
fares would be an insurmountable OBJ
lection" to acceptance Of the merger
Senator Vandenberg asked him If tn
companies we're not in accord a year o
two ago with the proposal to declare
moratorium on the fare question pend
ing a retaliation
Gen. Mason M. Patrick, chairman o
the Utilities Commission, was the frs
witness at the hearing, explaining tn
essential differences between the pend
ing plan and the one of last year
Being amendments to the utilize
law, the proposed changes In court pro
cedure would affect all public servic
corporations in the District, and Do1e
DeVane, attorney for the Chesapeake 4
Potomac Telephone Co., was selected b
present the utilities side of the cues
ton of court procedure, when appeal
are taken from decisions Of the com
mission.
At the request Of Senator Blaine, Nj
DeVane promised to submit the Ian
guage he believes should be used Il
amending the law with regard TO cour
procedure.
! Senator Capper, at the close Of tn
hearing, invited any citizens who ha
not spoken before the committee 3
submit briefs.
Mr.. Ham, in arguing against the two
year continuation of existing fares, sal
many tracks change would be necessar
to bring about the anticipated econo
mics under merger, and that the fnan
cial condition of the new compan
would have to be such as to attrac
needed new capital,