Evening star., 1932-02-18
Insists Consolidated Compa-
nies Must Be Kept as Well
Off as They Are Now.
HANNA ALSO APPEARS
AT HOUSE GROUP PROBE
Street Railway Executives Both
Voice Objections to Series of
Proposed Amendments.

Owners of Washingtons two street
fallway lines will not accept any merger
plan approved by Congress unless it
permits the consolidated companies to
be as well off in the future as the in
dependent companies are now, William
F. Ham, president Of the Washington
Railway & Electric Co., today warned
the Public Utilities Subcommittee of the
House District Committee at its final
hearing on the joint resolution author
izing the merger.
Chairman Black announced at the
conclusion of the hearing that his COM
mittee would report out the merger bill
in the near future substantially in its
present form, thus ignoring the series
of amendments proposed by Peoples
Counsel Richmond B. Keech and others.
He said the committee may adopt one
of Keech's amendments designed to re-
strict the activities Of the merged COM
panies to the operation OF street cars
and motor busses.
Ham and John H. Hanna, president
of the Capital Traction Co., appeared
before the committee to oppose series
of proposed amendments to the merger
bill which they declared would. if
adopted, hamper and restrict the activi-
ties of the new company and limit the
regulatory powers of the Public Utilities
Commission. Hanna also said If the
amendments are written into the merger
bill the Public Utilities Commission
might as well be abolished.
Ham Explains Purpose.
It was brought out during the hear
ing that the pending merger bill merely
pavas the way for a consolidation of
the car companies. but will not compel
then to merge. Hanna said, however,
- b-I:.vcd a merger would result if the
~ Is passed without too many restric-
t. on the activities of the new COM
q purpose of a merger" Ham
- to build up a transportation
my that will be better able to
;le public. What the public will
60 OF this is not to be measured
! e'lediate results, but by the ulti-
! Ceve2cDment of transportation
y. If that is true, the new COM
/ T2T should be made as profitable as
c. ms warrant.
- 80 tI-e liS" cCIllpdily, HoWeFeI, u
gig to be as well off as the present
cC-:ranies, the stockholders are not
going to accept the merger plan"
Both Ham and Hanna discussed in
detail some of the outstanding of the
proposed amendments, explaining the
reason for their objections. Most Of
the proposed amendments, Hanna said,
were suggested without any reason and
without any explanation of the benefits
that would accrue to the public.
Hardship Pointed Out.
Hanna pointed out that the amend
ment designed to restrict the activities
OF the merged company to the opera
tion of street cars and busseS would
hamper the future of the new company.
The proposed amendment to require
the issuance of free universal transfers,
Hanna declared, would impair the
revenues of the merged company and
handicap the future adjustment of fare
structures.
He also said he had no objection to
D proposed amendment to include q
provision in the merger bill for reduced
fares for school children.
Favors Cents for Children.
He explained, however, that the car
companies 90 not ODJecC 10 reasonable
reduced fare for school children, but
that they feel the present 3-cent fare
Is unreasonable. In response to a
question by Representative Mcleod of
Michigan. he declared he considered a
6-cent fare for school children rea-
sonable
At the request of Chairman Black
Hanna outlined the benefits of the
merger to the companies and the public
The companies. he said, would get as
direct tangible benefit relief from GER
tain charges. such as payment of
salaries to crossing policemen and paw
ing assessments and the right to operate
the two companies together, with re-
sulting economies.
Benefits to the public, Hanna listed
as follows:
!. Free transfers, resulting in a saving
to the public of 100000 under present
conditions
2. Strengthening Of the merged COM
pany for future service which would
enable it to make extensions and i'm
provements and purchase new equip
ment
William A. Roberts, assistant corpora =
tion counsel, told the committee that
the District Commissioners are in favor
of merger, pointing out that they be-
heved it would result in a marked i'm
provement in traffic conditions.