Evening star., 1920-01-09

The sections of the bill dealing with
changes in form of taxation and re-
lieving the utilities from the payment
of traffic policemen's salaries should
greatly relieve the financial troubles
of the Washington Railway and Elec-
trio Company. in the belief or the
Commissioners.
4 Per Cent Tax ReE aled by Bill.
The existing tax of per cent on
the gross receipts of the street rail-
way companies is repealed by tne
bill. which substitutes graduated
tax upon the operating income in ex-
cess of 6 per cent on the fair Vafue
of the property of the company.
The new tax would take one-half OF
all operating income in excess OF .
per cent and not exceeding per cent
and three-fourthS of all operating
income in excess of Z per cent
commissioners kutZ and Brownlow
presented the bill in person to Chair
nan NIapes of the House District COM
mittee this morning. The bill was
accompanied by letter. in which the
Commissioners went over the pres
ent perpiexing problem facing them
of dealing with two street railway
companies. one of which was aoie 10
operate at a scent fare. while the
other contends that it needs cents.
Letter of Commissioners.
The Commissioners letter follows:
The Commissioners of the District
of Columbia have the honor to sub
nit herewith a proposed bill further
to regulate public utilities in the Dis
trict of Columbia, and for other pur-
poses. and to request that thiS, or
similar legislation having. the same
object in view, be enacted into law at
an early date.
This legislation is proposed by the
Commissioners and the Public Util-
tiles Commission as practical and
immediate method of effecting certain
much needed adjustment in the street
railway situation i'll the District OF
Columbia, as we'll as to prepare way
for the merger of the street railway
companies under properly controlled
conditions and to provide Tor the ~
tue financing of the several public
utilities in accordance with sound
business principles.
THE objects of the proposed legisla-
ton may be summarized as follows
U) to change the form of taxation of
street railway companies from one
based on gross receipts to one based on
operating income; CD to create with
the taxes collected in the manner pro-
posed street railway contingent fund
to be used in the extension and improve
rnent of street railway service go to
lieve the street railway companies OF
the burden now imposed upon them OF
paying the entire cost of maintaining
street railway crossing policemen; (D
to authorize the merger of public util-
tiles performing like services within the
District of Columbia and CD to permit
public utilities in the District of Colum-
bia to finance needed extensions by the
issue of additional stock.
Calls for Repeal of Tax.
Section 1 provides for the repeal OF
the existing tax of per cent on the
gross receipts of the street railway COM
panies and substitutes therefor grad
uated tax upon operating income in eX-
cess of per cent on the fair value
of the property of the company as de-
termined by the Public Utilities Com
mission under the provisions of the ac,
of 1913. The new tax would take one.
half of all operating income in excess
of per cent and not exceeding pei
cent, and three-quarters of all operating
income in excess of per cent on the
fair value as so determined The tern
Operating income is defined with pre-.
csion.
LAS the value of the privileges which
the various street railroads enjoy in the
streets of the District of Columbia i:
not in any sense measured by the
gross receipts. taxes based Thereon
are inequitable and unjust. 1t is tru,
that this inequity has existed for {
great many years, but its effect on tn,
operating incomes of the companie!
until the world war necessitated in
creases of more than 100 per cent il
the wages of platform men and in tn,
cost of track maintenance.
Granted Increased Fare.
"On October Is. 1919, the Publ,
Utilities Commission granted in par
the petition of the Washington Rail
way and Electric Company and it
subsidiary street railway companie
for an increase in the rates of fare
In its opinion delivered at that TIM
the commission discussed the testi
mony adduced at the hearing and. hav
ing determined that the revenues o
the petitioning companies were made
Quate, proceeded to say:
1t is of Importance to determin
whether these increased rates o
fare shall apply only to the Washing
ton Railway and Electric system o
whether they shall apply alike to al
street railway companies within tn
, District of Columbia. There would b
but one answer to this question if IN
two companies were not competitive
but with practically every line of tn
Washington Railway and Electri
Company within the city proper par