Evening star., 1920-03-14
v. R. AND T. HEAD
APPROVES Woods
BASIS FOR MERGER
New Plan for Consolidation
of Car Companies Offers
Liberal Tax Clause.

William F. Ham, president of the
Washington Railway and Electric
Company, last night voiced his ap-
proval Of the plan outlined yesterday
by Representative Woods Of Virginia,
designed to bring about a merger of
the local traction companies.
After q casual reading of the
newspaper report. should say IL il
step. in the right direction" MT
Ham stated.
The solution offered by Mr.. Woods
who is member Of the House Dis
trict committee and q man Of expert
ence in street car Legislation, has
four principal points: To permit con-
solidation Of the Potomac Electric
Power Company and the Washington
Railway and Electric Company; to
relieve the companies of paying
crossing policemen: to authorize q
merger on vote of three -fourths OF
the capital stock Of both roads: to
abolish the present tax of 4 Der cent
on the gross earnings Of the COM
panies and substitute tax of 1 Der
cent on gross earnings and so per
cent on earnings above a Z per cent
return on the valuations Of the COM
panies.
Light Company Needed.
Mr.. Ham said he was pleased to see
Mr.. Woods include in the plan the
proposal to consolidate the Washing
ton Railway and Electric and the
!! electric light company. which already
is controlled by the street car COM
pany. The president of the Washing
ton Railway and Electric Company
said he believed this consolidation is
necessary if the Washington Rail-
way and Electric is to merge with the
Capital Traction Company.
George E. Hamilton. president of
the Capital Traction Company. said
he had not read the proposed plan of
Mr.. Woods and would reserve judR-
ment until he has studied it.
Mr.. Woods taxation clause is more
liberal to the companies than that
recommended to Congress by the
Commissioners. They suggested that
in place of the present 4 per cent tax
on gross earnings the District should
collect IS per cent of the companies
incomes in excess; Of a per cent re-
turn on the valuations and 50 Der
cent of all income over per cont. Tho
Commissioners stand for a Der cant
return to the companies on their
valuations. while Mr.. Woods allows
a per cent return.
The Commissioners have been On
posed to consolidation of the electric
light company with the Washington
Railway and Electric. which is al
lowed in the proposal of the repre.
sentative from Virginia.
Ain Of New Measure.
The aim Of Representative Woods.
bill, like that Of the Commissioners is
to bring the earning power OF the tvo
roads as near a level as possible. in
order to enable the stockholders Of hoth
companies to get together ON q merrsr
plan. "a
The stumbling block to q merger NJ
present is tho wide difference in earps
ing power. The Capital Traction Com.
pany. according to one Of its officials
is earning in the neighborhood OF 10
per cent on the commissions valuation
with the present rate Of fare. whereas
the Washington Railway and Electric
ia earning only about $50 per cent.
Mr.. Woods outlined his proposal ~.
on Individual on the District COM
mittee. which recently went thorough
w into the local street car situation
II the full committee soon reports ont
some bill that would tend to equalixs
the earning power of the companie.
II would greatly aid the utilities com
u,,ssion in deciding what the rate Of
fare should be after May 1.
Tho commission will begin . public
hearing March % ON the question OF
fare to be charged after. May l.. vhea
tho present rate of four tickets for q
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