Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-01-28

trict and prove particular hardship
to the public.
Mr.. Mapes said that frankly he feels
this legislation is in the nature of q
substitute. He referred to the state
ment by Commissioner kutz that IL
the two companies were operated as
one they would be paying per cent
crease in rate.
Isn't this really in the nature of
legislation that will compel the two
systems to consolidate" asked Mr.
Mapes.
Commissioner Kutz said he thought
this would happen eventually. but he
questioned whether it was wise at this
time. He thought that the tax scheme
proposed in the Commissioners bill.
which would practically relieve the
Washington Railway and Electric
Company from any tax and compel the
Capital Traction Company to pay
much greater tax was better thing
to do at this time. He said. however,
the commission is not averse to TAX
ing more drastic action if Congress
sees fit"
In reply to questions. Commissions
er kutz said that the tax system will
not force a merger or even equalize
the earning power of the two COM
panies. He said that the Capital
Traction will always have an adj
vantage over the W. R. and T..
Questions by Committee Members.
Members of the committee Ques-
toned the Engineer Commissioner at
considerable length regarding the
equity of taking the graduated tax,
putting it into q contingent fund to
be used for capital improvement. and
the fact that this would withdraw
from the Treasury taxes which the
paying. Commissioner Kutz said he
thought that without such contin-
gent fund it would be difficult for
the w r.. and F. to make any ex-
tensions. but that the Capital Trac-
tion would not have any difficulty.
Commissioner kutZ said thai one of
the extensions most urgently needed
is to parallel the 18th street line.
which. he said. has about reached the
limit of its capacity.
DO you think Congress could COM
pei a merger on the basis of the
valuation already fixed by the Public
Utilities Commission" Chairman
Mapes asked. Commi ssioner Kutz re-
piled that he did not think so. as that
valuation was for rate-making pur-
poses and was not the same as one
that would be made for sale pur-
poses. In reply TO further questions
from Chairman Mapes. however. he
said he thought that much of the in
ventory made by the Public Utilities
Commission could be used by jury
in determining the sale value OF the
street railway property.
Representative Burdick of Rhode
Island questioned the possibility of
successful corporation increasing its
expenditures so as TO reduce the tax
and at the same time make its own
property more valuable from sales
basis. Commissioner kutz said that
there would not be the same incentive
under the tax system for strict
economy in operation.
George f. Hamilton, president of
the Capital Traction Company, asked
Commissioner kutz If he knew any
thing in reason that the Capital Trac-
ton Company could have done for
the betterment of the service that
it had not done. Col. Kutz replied:
"Unhesitatingly 1 will say that
the Capital Traction Company has
done ali it could for the betterment
of the service"
Objected to Examination.
William NICK. Clayton. represent
ing the Federation of Citizens AS
sociations, started to cross-examine
Commissioner kutz. but Chairman
Mapes and Representative Burdick
interposed objections, saying he
would be given an opportunity to
make a statement later.
Representative Burdick said that he
thought MIR. Clayton'S questions. rela-
tive to what had been done or had not
been done some years ago. were not at
and that he thought the hearing
should be confined strictly to the bill.
Chairman MapeS said he believed the
committee ought to adopt some such
policy
Commissioner Brownlow impressed
upon the committee the reason for
giving increased fares to both compa-
MES fr order not to disrupt the serv-
ice by forcing an increased burden of
traffic on the Capital Traction Com
pany- and really reducing the income
of the Washington Railway and Elec-
trio Company while giving 1t an in
creased rate. He said that in the de-
eision at that time the commission
had forecast the tax proposal made in
the bill now under consideration.
Commissioner Brownlow said that
as relief in the present congestion
at rush hours he thought a stagger-
hour system for the opening of gov
eminent departments ought to be con-
sidered either by executive or legis-
lative action. In reply to questions
Mr. Brownlow said he believed that
the tax system proposed in the bill
would increase chances for an in
voluntary merger He said that he
does favor a merger, and if the COM
p2nieS do not get together volun-
tarily. compulsory action might well
he taken He sees serious objection
TO such course, however. and that
the only method of bringing it about
would be by condemnation proceed
tngs.