Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-12
TRACTION MERGER
TO Be GIVEN 0. K.
BY SENATE GROUP
Vote on New Court Procedure
in Utilities Cases Gets
Precedence.
WOULD C0NFINE JURISTS
TO QUESTIONS OF LAW
Present Fare Retained as Condition
to Union, but Way Is Not
Barred to Revision.

The street railway merger resolution,
containing the clause to keep present
rates Of fare In force for two years, will
be favorably reported by the Senate
| District committee within a few days,
but with the understanding that bill
setting up new form Of court pro-
cedure in utility cases must be acted
upon in advance of the merger.
In reaching this decision late yes
| terday the Senate committee upheld the
two main contentious of the Public
Utilities Commission. The commission
had written the court amendments into
the merger resolution, and, although
the committee voted to take them out
and present them to Congress as sep
crate legislation, this action was ac-
companied with the stipulation that the
court procedure bill will be taken up
first.
Merger Up to Stockholders.
II Congress should enact the merger
resolution in the form adopted by the
Senate group, the final decision as to
whether there would be a consolidation
would rest with the stockholders of the
Washington Railway & Electric Co. and
Capital Traction Co.
/ The resolution is a statement of the
terms the companies would have to
agree to II they desire to merge.
The companies have pending In the
District Supreme Court now a plea for
higher fares, and at a recent hearing
before the Senate committee they voiced
strenuous opposition to the clause in the
merger resolution requiring continual
ton OF existing fares for two years. The
mere passage of the merger legislation
would not mean continuation of present
fares for two years, but would mean
that the companies could only merge
by accepting that as one of the terms
The companies objected to having the
changes In court procedure in the
merger resolution, and they also dis
agreed with the commission as to the
text Of the court amendments. The
Senate committee, while handling the
amendments as separate bill, ap-
proved the text as recommended by the
commission. Members of the commits
sion explained that the purpose of the
amendments Is to prevent the courts of
the District from acting in the capacity
Of an additional utilities commission by
passing on the facts as well as the law
when utility cases are taken into court.
Commissioner Hartman explained
OAAdb uilOCI ILAccc dIIlCIlQI1eUGS The
courts would not pass upon the facts,
except where constitutional questions
were involved.
The new court procedure would be
an amendment to the utilities law and
would apply to all public service corpo-
rations in the District.
When the committee met yesterday
virtually all features of the merger reso-
luton had been worked out except the
stipulation to continue present fares
and the court amendments.
e Public "WouId Not Gain"
Senator Vandenberg, Republican, of
Michigan declared he could see mo
Justification for merger without the
clause continuing present fares for two
years" He argued the companies would
effect savings from unified operation
and would be relieved of paving charges
and the pay of crossing policemen. He
said the public would get nothing out
Of merger unless a two-year moratorium
on changes in fare was declared.
Chairman Capper said the companies
had made strong objection to the fare
provision, but he did not believe they
had ever said finally that they would
not accept a merger with that clause
in 1t.
Commissioner Hartman told the COM
mittee 1t is estimated the savings re-
sulting from the merger would be in
the neighborhood Of $750,000, and said
this Is within $4,000 of what they
would get II they received all they are
seeking in the rate case.
Gen. M. M. Patrick, chairman of the
commission, told the committee the
court amendments were not an essential
part of the merger resolution, but that
the commission is extremely anxious to
heve them enacted either in the merger
or separately.
The motion on which the committee
acted was made by Senator Glass, DEM
ocrat Of Virginia. Others who attended
the meeting were Senators Copeland,
Democrat, of New York; Gould, Repub-
lican, Of Maine; Blaine, Republican, of
Wisconsin; Jones, Republican, of Wash
ington. and Blease, Democrat, Of South
Carolina.