Evening star., 1920-01-29
CONGRESS BLAMED
FOR DUAL CAR LINE
SYSTEM IN DISTRICT
Has Made Merger Impossible,
President Ham Tells the
House Committee.
W. R. & E.'S URGENT NEED
FOR HELP EMPHASIZED
Cut in Suburban Service Might Be
Necessary, Company's Head
Says-Relief Suggestions.

NcceSS2ry, company head
Say@Relief Suggestions.
1t is the fault of Congress that there
is not a unified operation of the stree:
| railways in the District of Columbia
because Congress has made il impos-
sible to effect a merger. w +. Ham.
president of the Washington Railway
and Electric Company. today told the
! House District committee. which is
conducting hearings on the District
commissioners bill which would per-
init a merger of public utilities in the
District.
Mr.. Ham said the Washington Rail-
way and Electric Company favors a
merger, and read an extract from his
recent report. in which he urged such
a policy.
We can't go on, said Mr.. Ham.
unless something is done. can't
make that too strong"
w. r. e. Integrity Favored.
In reply to series of questions by
members of the committee. he said
| that he believes il is for the We
fare of the community that the in
tegrity of the Washington Railway
| and Electric system should be main
tanned. But it may be forced to make
of service. Replying to direct ques-
tions. he said the company might
be compelled to cut off some of the
suburban service, which is causing
heavy loss. He said that the COM
pany could pick out sixty four miles
of trackage in downtown Washing
ton. an equal number with the track
age of the Capital Traction Com
pany. which it could operate just as
profitahly as the Capital Traction
Mr.. Ham in reply to questions fro'al
Chairman Mapes said that he did TO-
believe merger could oe brough;
about through the bill under con-
sideratior. He advocated giving the
Public Utilities Commission all the
power that it now has and the Wild
est possible additional power. ana
that the La Toilette amendment TO
.he public utilities act as far as il
affects the District. should be re-
pealed. This amendment. he said.
prohibits the Washington Halfway
dnc Electric Company from taking
over t"e franchise II the Poi"mae
Electric Power Company.
Then you would have laiJ the
foundation for a merger" he said
and il those who nave their money
invested cannot fini way out. Con
Relief Asked For.
Members of the. committee appeared
deeply interested in Mr. Hams testi-
mony, which will be continued to-
morrow, and asked many questions.
He advocated relieving the street
| railways from the cost OF maintain
ing traffic policemen: he argued that
| the cost of new pavement between
the tracks and for two feet on either
| side should be laid upon the commu-
nifty rather than on car riders. He
also favored the proposal to take of
the per cent tax on gross earnings.
He was discussing the desirability
and justice of allowing profits of the
Potomac Electric Power Company to
be used to meet the deficit caused by
the operation of suburban street car
lines when the hearing closed
Merger Not New Attitude.
In stating at the opening of the
hearing his policy in favor Of d
merger he said that il was no ne,
attitude on the part of the companY.
and put into the record the following
paragraph from his recent annual re-
port to the stockholders
1t seems reasonable that a merger
OF the railway properties of this com
pany and its subsidiary compan
with those of the Capital Traction
Company should be brought about VIVA
advantage to the public and fairness
to security holders.
Such a merger. however, in The
judgment of your president should
include the railway lines of our COM
pany and of the Capital Traction Com
pany, located within the state OF
Maryland as well as within the D.s
trict of Columbia, and should he
/
cost guaranteeing a reasonable re-
turn upon the investment and at the
same time insurinS the car riders
services at actual cost"
| Mr.. Ham sa id that the cost of m6ir-
tanning traffic policemen made levy
on his company for $4,000 year. He
said this is the only city in the coun-
try where the companies are COM
PEELED to carry this burden. The We
hicular and pedestrian traffic, he said.
at these corners greatly outnumhered
the street railway traffic.
Protests 4 Per Cent Tax.
He argued for abolition OF the
per cent tax on gross earnings say
ing that il was not just that ii COM
pany which was not earning reason
able return on it's physical properly.
as valued by the Public Utilities Com
mission, should be called upon to pay
a tax on the franchise which the
commission had not included in the
valuation.
MIR Ham said that the riders
should not be obliged to pay this per
cent tax on gross receipts. because
Congress determined that there should
be an underground system While TINS
adds greatly to the beauty of the city.
he said. il is an expensive luxury II
cost the companies about three times
as much to install the underground
system and two or three tunes as
much to maintain ii. He felt that this
might well be a burden on the COM
munity rather than on the company.
In the particular case of the w. II. Il
f. he urged the justice of waiving the
per cent tax. because by the CON
struction of lines in the suburban ter
ritory it has increased the real estate
taxes He described these lines as
city builders and tax producers" He
| said that the w. r. f. Co had de-
| yeloped the District and surrounding
territory at a cost to the company, but
of inestimable value to the city
! through the properties that have been
| built up by continuous service. He
presented statistics on certain locali-
ties and specific property showing that
the assessed valuation has been in
| creased up to 500 per cent through the
operation of the suburban lines.
LOsses on Suburban Lines.
F, He said that every one of the
| suburban lines from the beginning
bad been operated at loss. In TWEEN
| ty years only one of the suburban
| lines. the Washington and Suburban.
has paid dividend. For two years
| this company paid per cent and one
year per cent.
| Representative Johnson, democrat
| of Kentucky, asked il the company
had speculated in real estate in the
suburbs developed and had thus been
recompensed. Mr.. Ham said that il
had not.
| In advocating that in the public in
| terest and for the good OF the COM
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