Evening star., 1932-02-20
COMMITTEE ACTION
|. ON CAR MERGER IN
TEN DAYS LIKELY
Capper to Call Meeting When
Printed Testimony Has
Been Digested.
PLEAS FOR CHANGES
CONCLUDE HEARINGS
Keech, Clayton and Tucker Urge
Amendments-Lines Hope
for Agreement.

With hearings on the street railway
merger plan completed. Chairman Cap
per will call special meeting Of the
Senate District Committee to render
a verdict on the resolution as soon as
all members of the committee have an
opportunity to read the printed testi-
mony. This probably will be in 10
days or two weeks
The final hearing yesterday after
noon found Peoples Counsel Richmond
B. Keech, William NICK Clayton Of
the Federation Of Citizens Associations.
and Evan H. Tucker Of the Northeast
Washington Citizens Association re-
newing their pleas for amendments
which they believe should be made in
the public interest.
There were indications in the testi-
mony that officials Of the companies
hope to work out an agreement on the
objections raised by the District Com
mlssioners to the section relieving the
railways of part of their present
street paving costs The companies
also expressed willingness TO have in
cluded some provision giving the Utili-
ties Commission definite authority to
establish a reduced fare for school
children.
Other Changes Opposed.
AS to practically all Of the other
amendments that have been suggested
during the hearings, officials Of the
companies objected telling the commit
tee that If too many restrictions are
placed in the document the merged
system would not have chance to sue
ceed.
Peoples Counsel Keech is contending
for the following changes: Restriction
Of the merged company to street rail-
ways and buSses, to prevent the car
lines from operating taxicabs; elimina-
pany to have subsidiaries, and the
striking out of the power clause, which
defines the terms under which the Po-
tomac Electric Power Co. is to furnish
current to the new car system.
Mr.. Clayton is urging the following
changes: Creation Of the new company
by congressional charter rather than by
incorporation under the District code:
free immediate transfers from street
cars to busses and between bus lines;
elimination Of the requirement for GER
tiflcateS Of convenience and necessity
before a competitive transportation line
could be established: provision to re-
quire that if the Washington Rapid
Transit Co. is acquired by the new
company. it should be merged imme-
diately with the new company; change
in the provision giving the commission
authority to approve legal expenses in
cident to the merger.
Resolution a Compromise.
John H Hanna. president Of the
Capital Traction Co. told the COM
mittee the merger resolution as intro
duced by the Utilities Commission at
this session of Congress is not all trat
the companies would like to have. hut
is compromise. He said the con.nit-
tee would be informed within few
days of the outcome of pending nego-
tiationS with the Commissioners over
the distribution of street paving costs.
He outlined specific objections to ali of
the other amendments.
Mr.. Hanna said there was no inten-
ton or desire to operate taxicabs at
the present time, but argued the merg-
ed car company should not be deprived
forever of the right to operate them if
the Utilities Commission saw fit to au-
thorize it in the future. The Keech
amendment to limit the merged system
to street railways and buses. he said,
would be too drastic limitation on
future development of the transporta-
tion system.
The resolution as drafted provides for
free transfers between street car lines
but leaves to the commission to decide
on transfer arrangements from cars
to busses. On Clayton's suggestion for
universal free transfers, Hanna and
William F. Ham, of the Washington
Railway & Electric Co., both contended
that would be inequitable. arguing that
many of the bus lines are feeders into
new territory and could not be oper-
ated on a freetransfer basis. Clayton
described these pay-transfers as
nuisance taxes" and expressed the be-
lief the people would prefer to see rates
fixed so that there would be but one
iumbia
Terms of Power Clause.
The power clause, which Keech
urged be eliminated, provides that for
Is years 63 per cent of the power used
by the merged company would be sup
Piled under the terms of the power ar
rangement already existing between
the Potomac Electric Power Co. and
the Washington Railway & Electric
Co. and 81 per cent to be paid for as
determined by the Utilities Commission.
After IS years it would all be subject
10 approval OF the commission. keech
argued that the principal function of
the Utilities Commission was to fix
rates, and that it should be allowed to
fix the rates for all electric current
from the start
Mr.. Hanna told the committee the
power clause was worked out by DIR.
Milo r. Maltbie when he was engaged
by the Senate Committee several years
ago as its expert consultant Mr.. Clay
ton said he was i'll accord with the
power clause as it stands in the reso-
luton.
Conrad H. Syme was present at yes
terday's hearing representing sight
seeing bus companies.
As the hearings closed, Chairman
Capper asked the spokesman for each
group to submit a copy of the resolu-
tion marked to indicate the amend
ments each group is advocating. These
various proposals will be before the
committee, together with the printed
testimony, when it meets to render a
decision.
The resolution contemplates a volun-
tary merger. If Congress passes the
resolution, the terms of merger con-
tained in it would be submitted to the
stockholders for action before the con-
solidation could be carried out.