The Washington times., 1920-04-20
HOUSE GIVEN
MERGER BILL
Congressman Woods Introduces
Measure for Single Car Sys-
tenn In Washington.
WILL MEET OPPOSITION
Chairman Mapes, Of District
Committee, May Not Con-
sent to Hearing.

Street railway legislation took
definite shape in the House this aft
ernoon when Congressman Woods Of
Virginia, member Of the District OF
Columbia Committee, introduced a
bill intending to pave the way for a
merger Of the Washington Railway
and Electric and the Capitol Traction
companies.
Agree on Principles.
This action was taken following
yesterdays conference at the House
office building, at which Mr.. Woods,
the District Commissioners. and ofh-
ciaIs OF the two traction companies
reached a nnal agreement on the gen
eraI principles involved in the legis-
lation.
It is taken that the Woods bill. re-
written largely to conform with the
views of Commissioners Brownlow
and Kutz, who form the Public Utiii-
ties Commission, will receive rough
treatment in the District committee.
Mr.. Woods doubted this morning that
the bill would get through.
OHD0oS0 10 SOShcsOns
Chairman Mapes of the District
committee, to which the bill has been
referred had not Indicated that he
would call together his colleagues to
consider merger Legislation.
Under the Woods bill. a. 1t has
been revised the authorised merger
Of the washington Railway and Eioc
tric Comysny with the Potomac Eiec-
.tric Pevsr- company is maze conci,
tIouat on the inclusion ~ the Capital
Traction Company in tho proposed
This runs counter to the wishes or
CONGRESSMAN Mapes, who does not be-
lieye this condition to be intact. He
believes It 4. not necessary to hold
club over the head Of the Washing
ton Railway and Electric Company
in order to bring about the voluntary
merger with the Capital Traction
Compny.
Another point in the bill which will
require modification In Mr. Woods
oninion IN the provision taxing the two
companies 30 per cent on all earnings
over Z per cent
Extra ProAt Tax.
The reason for this extra pront tax
was TO permit the insertion OF an ao-
ditional provision reducing the gross
receipt tax from four to one per cent
CONGRESSMAN Woods does not believe
Congress should 60 so far as TO guar
antee a per cent return to the trac-
ton companies beyond q limited time
period. He suggests that three years
should be the period. At the end or
that time Congress should extend tho
period II It sees ft
vv~At Over Guarantee.
The proposed Z per cent guarantee
Is bound to stir up opposition In the
District Committee, and will prove
one Of the bones of contention when
the committee meets again to con-
slider merger legislation. Chairman
Mapes and Congressman Ben John
son, former Democratic chairman of
the committee, are both opposed to
the principle Of Congress guarantee
ing returns to the traction COM
panies.
While the imposition of the 90 per
cent excess proit tax is in reality
penalty upon the Capital Traction
Company for it's efficient manage
ment, II Is uDderstood that George
Z. Hamilton, president of the COM
pany, has agreed to It's insertion In
the bill.
In view of the policy of Congress
to levy the heaviest taxes on those
best able to stand the burden, Con-
gressman Woods took the position
that the excess profits tax, while 1t
penalties the Capital Traction Com
pany, is, nevertheless, the fairest
method OF dealing with the taxation