Evening star., 1919-11-09
RAILWAY COMpANY'S pr OBLEM
HAS NOT BEEN SOLVED
Probabilities Are That the Gardiner Plan
May Be Given Trial After May l,
l92O-Local Financial Matters.
BY /. A. FLEMING.

. l. L.
BY /. A. FLEMING.
Bankers on the committee of note
holders of the Washington Utilities
Company have not decided whether they
: will or will not make any effort to Sc
cure representation on the directory OF
the Washington Railway and Electric
Company at the annual election in jan
uary.
: They are the owners of 21.500 shares
Of the common stock, fact that mas
been impressed time and again on the
public through the daily press More
. over, this same stock has for years
been the power through which the pres
ent directors have perpetuated them
selves in office. plus the replies received
to requests for proxies from sharehold-
ers generally.
What the bankers really want is the
cash that they advanced as lean on
the shares as collateral; failing that
they would that some scheme might
be devised by which they would get
their interest on the investment.
Reports received on the working OF
Ifle advanced rates 1istNC iOt cSNii SSFss,,
cialy encouraging, although thsy VIII
have to be tried out until May. 1870, De-
fore there is the probability OF any
change. 1t is very doubtful II the
Washington Utilities Comm sslon woulo
seriously consider any additional corr
pensation for passenger service within
the District but If sufficient pubic de-
mand arose il is within the probabilities
that the Gardiner plan might be given
. try-out.
Think It Is Promising.
Some of the bankers seem to believe
that therein lies the chances for some
payment to the common shareholders
no less than a possibility of advancing
the chances for the desired merger
All admit that merger of the street
railway companies would be advanta-
better reason for the existence of two
street railways than for two telephone
companies.
But when it comes right down to
the matter of when and how the
bankers as we'll as the general public
are at sea as to the answer.
1t is an exceedingly difficult mat
ter to force a shareholder In cor
poration to dispose of his stock; even
more difficult when the Quid pro quo
would be stock in another corporation
business man fully cognizant of
conditions and laws as affecting street
railroad companies. etc. offered this
problem day or two ago:
"If Congress does order an amalsa-
nation of the two local systems-if 1t
has the right to do this--it certainly
must provide for the payment of cash
for the stock of any man demanding it
IN exchange for his holdings. am
not saying that Congress has the right.
but am recalling that the law some
years ago-and 1 believe there has
been no change-required the consent
of every shareholder to any change
in the standing Of his stock"
Appeal for Economy.
The appeal of the Gardiner plan is
for economy and forrevenue for the
needy Washington Railway and the
electric company. for the two are
ration, except as to securities and op-
Grating forces.
1t is held that through an addition
al charge of 81 month to each fami- |
ly consuming electric light there
would be distinct saving as between
the going rates of street : railway
fare: sthat the patrons OF the Capital
Traction Company.s which has not
asked for relief but received the ex-
ira compensation to prevent the di
version of business from. the Wash
ington railway company. would have
AFTER company. to the resultant gain
OF the public.
The trial of this plan would neces-
state the revocation of the utilities
commissions order for reduction
from 10 to 8 cents for current.
which is now under judicial consid-
Grafton by Judge Gould.
Might Aid Merger.
The Gardiner ulan would annear tn
make the merger proposition a lit
tie harder of solution. Some contend
that 1t would aid a union of the sys-
TENS IN that the Capital Traction
Company might find it difficult to
make headway on a straight five-cent
fare. although it was paying divi-
dends and evidently prosperous on
that basis.
The whole situation is no nearer
satisfactory solution than it was six
months ago.
A change in managing officials of the
Washington Railway company might
not bring any beneficial results. 1t may
be that the threat Of the company to
abandon certain non-paying lines may
be renewed.
sengers at the rate Of about I 1000, 600
fares annually. with small chance of
business In this line showing any i'm
provement.
This would seem to indicate that ad-
ditlonal revenue would have to come
from the sale Of electric light
Income Tax Matters.>
Income tax paid at the source of the
taxpayer Is additional revenue to the
taxpayer and must be added to his in
come
This ruling does not affect CORPORA
tions. but if corporation. pays the
per cent tax on bonds owned by the
lholvidual. under covenant agreement.
the individual must add the amount 40
paid TO his income and pay taxes on it.
The fact that they are going back
over the income taxes of 1917 and 1918
need not worry the man of small in
come. but Is liable to be expensive to
the man of large means
III Is important also to remember
that ii Is necessary to have your tax
receipts for 1916-1I-lS for income tav
be1ore you Will be allowed to leave
TINS country. even for visit across
into Canada.
II you are not an American citizen
II VIII also be necessary for you to
pay your income tax for the wear 1919
up TO the date of intended sailing be-
fore you viii be permitted to pass out
Counting on Two Decisions.
The general opinion is that the
United States Supreme Court is about
TO hand down two very important de-
fsions. both of " hich will have very
decided influence on Wall street
speculation Immediately following
the reports
Should the decision in the Southern
racine OIL lands case be against the
a L.