Evening star. [volume] (Washington, D.C.) 1854-1972, 1898-02-09
TAXING LOCAL RAILWAYS
New Method Agreed on by House Sub
committee.
Reasons for the Change Given by
Chairman BabcOck-Partial De-
cisiOn on Extensions.

The subcommittee on street railways,
streets and avenues of the House District
committee has taken important action upon
the subject of street railway taxation in the
District. After a urotracted session, in
which the subject was discussed in all its
bearings, the subcommittee reached unani-
nous agreement upon a new method OF
street railway taxation.
The new plan involves three propositions:
First. that all street railway companies
shall pay franchise tax of SO of / per
cent of their gross receipts.
Second that the Capital Traction Com
pany, the Metropolitan and the Columbia
Company shall pay, in addition to the fran
chise tax, a general tax of 4 per cent OF
their gross receipts. All other companies
shall pay in addition to the franchise tax a
general tax Of per cent of their gross re-
ceiptS
Third, that all street railway companies
shall be assessed and taxed upon their real
are now taxed.
1t is believed that the recommenda tions
of the subcommittee will be adopted by the
full committee. and that a bill embodying
them will be reported to the House at an
early date.
Street Railway Extension.
The subcommittee has also reached a par
tial decision In the matter of proposed
street railway extensions. 1t has been de-
cided that the application of the Columbia
railway for extension of its tracks west of
18th street and below PENNSYLVANIA avenue
cannot be considered. The subcommittee is
moved to this view, it is said, by the belief
that engineering difficulties are in the way
OF the Columbia reaching 18th street from
It's present western terminus and that
street railway facilities can be furnished
more practically by the Capital Traction
Company than by any other road.
The subcommittee has decided that 1t
would not be practicable to authorize the
Metropohtan company to extend its tracks
northward on 18th street. The subcommit-
Tee did not pass upon any alternative route,
out is unanimous upon its objection to l3t n
street.
Effect of the New Method.
IN discussing the action Of the subcom-
hittee In the latter of change in the
method Of street railway taxation Chair
man Babcock said tc a Star reporter this
afternoon:
1t is estimated that if the recommends
tfons of the subcommittee are adopted the
District will receive from $4,000 to s25 600
year more from street railway taxes than
under the present system. Furthermore.
the new law would equalize the taxes
would be altogether more uniform and
equitable.
THE recent hearings before the sub
committee developed the fact that there is
a great deal of confusion in the laws re-
latlnS to the taxation of street railways
The Capital Traction and the MetropoIi-
tan are taxed in different manner The
Anacosua company is taxed differently
from either OF the other companies men
toned. and there are many inequalities in
the law. The new plan will reconcile them
and put all the companies upon a fair
footing.
THE subcommittee in the second propo-
sltion OF the new plan makes the Capital
traction, the Metropolitan and the Coum-
bla pay per cent on their gross receipts
ana all other companies pay per cent
That was done for this reason: Those three
ROADS are dlvldend-paying properties. Some
other roads in this city are being operate ed
at loss TO the stockholders. The COM
mittee felt 1t would only be fair to make the
general tax less upon them than upon the
laige roads although all will have to pay
the franchise and real estate tax alike