Evening star., 1932-02-09
Clayton Says Provision
Should Be Made, Though
1t Might Raise Fares.
MONOPOLY IN TRACTION
is FEARED BY WITNESS
Commissioners Favor Bill. but
Demand Protection for
Taxpayers.
A provision for universal free trans

ferS should be written into the street
car merger bill, even though it might
result in higher fares, William NICK
Clayton, chairman of the Public Utili-
ties Committee of the Federation of
Citizens Associations declared TODAY at
hearing before the Public Utilities
Subcommittee of the House District
Committee
Mr.. Clayton pointed out the bill in its
present form provides for free transfers
only between the connecting portions of
the street railway lines of the merged
company. The transfer arrangement,
he said, should be extended to free i'm
mediate transfers between street cars
and busses and between bus lines"
Asks Other Changes.
Four other amendments TO the bill
were urged by Mr. Clayton as
further safeguard in the interests of
the public" These would provide that
congressional charter be granted the
new company rather than its incorpora-
ton under the District code; that the
Washington Rapid Transit Co. be
merged with and become a part of the
new company, and a change in the
phraseology Of provision relating to
the payment of the expenses of the
merger by the new company. subject to
approval of the Public Utilities Com
mission
William A. Roberts assistant general
counsel of the Public Utilities Commis-
sion, replied to Mr. ClaytonS recon-
mendations, declaring the commission
did not believe it would be practical to
insert in the bill the provisions for free
universal transfers. and chartering of
the new company instead of incorpo-
rating it under the District code
The merger would give the CONSOLE
dated company monopolistic power
superior to Congress, George E. Sui
livan of the Takoma Citizens ASSOcia-
ton Of the District testified.
I'm in favor of a merger" Mr.. Sui
livan declared. but not one at such a
| cost as is proposed In the pending
merger bill
| Mr.. Sullivan said one way to bring
about a merger, in lieu of the plans al
ready suggested, would be for Congress
| to rescind the charters of the street
| railway companies, and allow a new
| company to get possession of the eX-
| isting transportation properties through
! condemnation.
AT the outset of his testimony Keech
said he was heartily in favor of a mer-
| ger and agreed with certain amend
ments proposed by Maj. Gen. Mason
| M Patrick, chairman of the Public
! Utilities Commission. which would limit
the merger the street railway in vari-
Gus bus companies.
| He said however. OTTER changes
should be made in various sections of
| the bill in the interest of consistency.
One of these sections. as now phrased,
| he declared, would give the CONSOLE
dated Company the right to operate
| taxicabs, and anything under the SUM-
Wants Fair Value"
One of Keech's proposed amend
mentS would require that at least 10
| instead of a fajority of the members
of the board of directors of the new
| company should be bona fde residents
of the District. Another is designed
to permit the merged company to ac-
quire all outstanding stock of the
Washington Rapid Transit Co. at fair
value" instead of, as provided in the
merger bill. 'on such terms as may be
accepted" by the stock owners.
| A third amendment offered by Keech
would substitute an entire new para
graph for one in the bill giving the
new company authority to take over
all existing contracts OF the Washing
! ton Railway & Electric Co. for the sale
of power to other railway companies.
The Washington Railway & Electric
| Co has not at the present time, keech
| declared, the right to engage in the
| business of selling power, and 1 do not
| believe Congress should vest the new
I company with the right to do what the
| Washington Railway & Electric Co has
been permitted to do without authority
of law in the past.
Assails Sale of Power.
| The method by which the Washing
ton Railway g. Electric Co. has in the
| -
and sold the amount in excess of its
own requirement to other companies, is
wrong in principle 1t has been detrl-
mental to the public in that the profit
which the Washington company has
| received through the sale of excess
power to other companies has not been
utilized to bring about a reduction in
rates. as authorized under the so-called
J sliding scale of rates
AS the merger bill authorizes the is
suance of free transfers between street
railway lines only, Kcsch proposed an
other amendment providing for the is
suance of transfers between buSses and
cars and vice versa.
In summarizing his objections to the
merger bill in its present form, Keech
/ said he believes that because of the
1 failure of the drafting parties to limit
| the legislation to mere merger of the
companies and attaching thereto mat
| ters totally eXtraneouS to the purpose
sought, it has been the medium of de-
feating the merger heretofore.
Il am personally in favor of a mer-
ger, and likewise believe the city Of
| Washington entertainS a similar view"
Keech said, but 1 do not believe that.
| in order to effect this result, We should
| permit the passage of eXtraneous legis-
| lation which will ultimately serve 10
| harm u.s."
Another hearing will be held by the
subcommittee Thursday. February 18.
At that time representatives of the
! street railway companies will be given
an opportunity to offer their objections
to the numerous amendments proposed
| by civic and other organizations.
Belief that merger legislation had
4! failed to pass in former years because
| eXtraneouS matter had been written
into the resolution was expressed by
Keech in a letter to Chairman Capper
of the Senate District Committee today.
Mr.. Keech outlined in detail the sew
eral features Of the merger resolution
to which he objected at the Senate
hearing a week ago and added:
! while it may appear from what has
gone before that the resolution in ques-
tion Is being rather severely criticized,
close examination will reveal that
most of that which has been attached
is in no wise essential to mere merger
of street railways and is in my opinion
large surplusage."
Mr. Keech said he favored a merger
and thinks the people of the District
do also, but believes it can be done
without including the provisions which
he thinks may prove harmful IN the