Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-03-03
MERGER DECISION
|. LIKELY NEXT WEEK
Senate Committee Gets Let
ter Outlining Position
of Companies.

With four essential points Of diff
ference between the views of the Public
Utilities Commission and the traction
companies, members of the Senate
District Committee probably will gather
sometime next week in an effort to
reach final decision on the long pend
ing street railway merger question.
In joint letter to Chairman Capper
late yesterday, John H. Hanna, preSi-
dent of the Capital Traction. and
William F. Ham, head of the Washing
ton Railway & Electric, outlined their
position on the four provisions still in
disagreement.
These four points relate to the fol-
lowing questions: Insertion by the
commission Of the term mass trans
merged company's operations; the
company's activities through subsidi-
aries; the extent to which the company
should be relieved of paving charges,
on which there is a difference of opin-
ion with the Commissioners, and,
finally, the commission amendment 70
give Congress broad powers over the
charter of the new company.
Acquisition of Properties.
The original resolution provided that
the new company could acquire and
operate transit properties In Directing
to limiting this authority to mass
transportation" the traction officials
wrote:
THE railways believe that the in
terests of all concerned, particularly
those of the public, will be best served
by placing no obstacle, through unusual
or restrictive phrasing or otherwise, in
the way of their being able to keep
pace with the rapidly developing art
of passenger transportation. The rail-
ways respectfully submit that as public
utilities 1t Is their first duty and obli-
cation to the public to provide the best,
most modern and most economical
method of transportation in whatever
form the public demand favors."
The companies further point out that
their activities will continue to be I'M
der public regulation in whatever form.
AS to the limitation on subsidiaries,
the companies stated:
1T would be unfortunate if in the
future there should arise any question
of the right of the new company to
finance its operations through sub
salaries. Estab lishment of a subsidiary
has, as a rule, for its primary object.
more advantageous and cheaper cost
of financing of major extensions, bet
terments and improvements"
Question of Repairing.
The amendment just suggested by
the companies to relieve them of part
OF the costs they now pay for paving
between and adjacent to their tracks
provides that "the new company be
relieved of three-fourths Of the cost of
complete requirement. of the space for
which it Is now entirely responsible, as
well as three-fourths of the cost of new
pavement"
Our estimate the company officials
say, based on experience during the
last 10 years, and on our best Judgment
as to the future, indicates an annual
reduction in paving costs which the
new company would enjoy under the
amendment submitted of not more than
$125, 900 year for the two companies. {"
The pending proposal of the District
Commissioners is that the city will as
sumo all paving on bridges, and all re-
placements on bridges, EXCEPT those
specifically attributable to car operation,
and the city would assume three
fourths Of the paving between tracks on
streets which have not previously been
permanently paved. The point of diff
ference, therefore, relates to whether
the companies should be relieved of
part of the cost of streets repaved
Referring to the final point of diff
ference relating to the powers to be
given Congress over the new charter,
the companies say the apparent pur-
pose of this change is to accomplish by
circumvention a status similar to, if not
that of, a Congressional charter, con-
trary to the policy of Congress as ex-
pressed by members Of the Senate COM
Inittee at the hearings"
The new company is to be incorpo-
rated under the District code as the
resolution now stands, and the COM
panies argue that Congress has the
power at any time to amend the chap
ter Of the code under which the new
company would be formed.