Evening star., 1920-12-03
WOODS WILL PRESS
TROLLEY MEASURE
Representative Believes It
Will Result in Beneficial
Merger.

L TeiieVe the SlIuatlOu Ior pSOplo IN
Washington who are facing another
increase in street car fares and to
show a way to cleaning up the street
railway difficulties in the. National
Capital and induce a merger Of the
two lines. Representative James P.
Woods of Virginia will urge for
prompt action on his pending bill as
soon as Congress meets.
The Woods bill proposes to cure the
situation by readjustment Of taxes,
which, he contends. would effect an
immediate relief and induce a merger.
which, he says. "is the only real solu-
the District" He proposes that in
stead of the present tax of per cent
on the gross receipts of each COM
pany, the gross receipts tax shall be
/ per cent. and that SO per cent OF the
earnings shall be. taken after per
cent has been earned.
Representative Woods has had com. !.
piled statistics re8ardlnE how his pro-
posed tax adjustment measure would
affect both of the street car companies.
These show that the Capital Traction
Company pays an increase Of $1sS, ,oos in
taxes. These estimates for the present
year are as follows:
Capital Traction
Gross receipts. $5.345. $50.
One per cent tai. $53.456. -,
Fair value. $4,000. 600.
,,ssss' sssss 'oes. Pss sfss sllesed csalafays
Operating expenses. $s.1s2.74s.
:. Net Income, $2.162, SIS. -.
Eassas Ffss e,s. cent e e. ssss .s s,1as
One PEI cent tfoae taxs s5s,45s.gs i.
Capital Traction Cofnfahy, sos. .6)s.
Washington Railway and Electric
Gross receipts s.. .ss4ss4, ~ :
1peratin. expenses. s4.sss.sss.. J. -
valuation, $1s, ,aoo. 900, -
Sexea per cent Of valuation. $l.1s4,o ,oeo.
One per cent tax. $5s.s4s, which a. the
total the Washington Railway and Elec-
tric Company would pay in taxes.
cussed by the House District Commit.
tee in the closing days Of the last
session, and he believes that earIv
action can, be had. He has devoted
his entire professional life to street
railway problems and has negotiated
several important public utilities
BY the passage of such bill, Repre-
sentative Woods feels a merger can
be effected along lines fair to all in
terests. and which will protect the
rights Of stockholders in each com
sentative Woods said. =.
1t gives the shareholders of each
company reasonable return ON their
investment. That is all they have a
right to expect from the public. 1t
Is true it places a much heavier bur-
den upon the Capital Traction Com
pany in that it takes one-half Of its
excess earnings. but 1t still leaves the
company its reasonable return, On
the other hand the bill lessons the
burden on the Washington Railway
and Electric Company.
1T allows a consolidation Of the Po.
tomac Electric Power Company plant
with the Washington Railway and
Electric Company. My understanding
was that the main features Of the bill
were satisfactory to the District Com
Taissioners. to the management Of both
companies, and would have resulted
in keeping down the rates for pas
sengers.
1T opens the way for q voluntary
merger and my thought is it should
be put in operation and IL 1t does not
then Congress can and should take
the necessary steps later on to COM
pei merger, which in my judgment
must ultimately be the solution of
the street car problem of the District.
1.-The passage Of this bill means that
it will make unnecessary any in
creased fare, and as the statisticians
have figured it. while it readjusts
the taxes it will not decrease the to-
tai revenue from taxation"