The Washington herald., 1920-01-10
$3.50 BLOCKS
MERGER ACTION
Legislation Awaits Congress
sional Consideration Of
.Half-andHalf Plan.
COMMITTEE IS SILENT
Kutz Declares Scent Fares
Impossible
Move Opposed.

Proposed legislation presented by
the Commissioners of the District
which would permit q merger of the
Capital Traction and the Washing
ton Railway and Electric street
railway lines. will not be considered
until after the bill aboiishing the
half-and-half plan Is acted upon
by the House. Chairman Mapes, OF
the House District Committee said.
Mr.. Mapes expects the half-and-
half legislation to be considered In
the House Monday.
Members of the House District
Committee could not be induced TO
discuss the suggested street car
merger proposition of the District
Commissioners yesterday, asserting 6
they had not had, time to study IT.
Lower street car fares with i'm
proved service is foreseen IL Con-
gress approves the plan of merging
the two local street railway COM
panies.
Explain Salient Points
Commissioners Brownlow and Kutz
presented Chairman Mapes with the
suggested bill proposing the merger
ONhCA Al PAOAAC 6NAAN&S1
laws. accompanied by a letter explain
ing the salient points provided in the
bill.
In discussing the possibilities with
regard to the extent Of the drop in
fares. Engineer Commissioner Charles
W. Kutz, chairman of the commits
sion, expressed the belief. however,
that Washington will never again see
a five-cent fare unless living condi-
tions change.
Strong opposition to the merger Is
expected to develop among officials of
the Capital Traction Company. The
attitude of President George Z. Ham,
ilton with regard to merging the two
local street railway companies re-
mains unchanged" stated ]. H.
Hanna. vice president. last night.
Merging the two companies will
never effect a drop in carfare rates. Z"
declared Vice President S. r. Bowen,
of the Washington Railway and Elec-
trio Company. when informed of the
proposed bill.
I'VE will continue to urge that
the Public Utilities Commission
grant our petition for more reve-
nue.. now in its hands," he added.
Five Remedies for Car Ills.
Five measures asked of Congress
yesterday by the District Commits
sioners TO remedy the financial con-
dition of street car companies in
a letter TO Chairman Carl e. Mapes,
of the House District Committee.
briefly are as follows:
A merger OF the street railway
companies.
A change in the form of taxation
from, one based on gross receipts
to one based on operating income.
Creation OF an improvement and
extension contingent fund from
revenues derived from taxation.
Relieving street railway compa-
nies of bearing the entire burden
of paying crossing policemen's SAL
aries.
Financing needed extension in
public utilities by the Issuance of
additional stock.
Taxation Plan offered.
The more equitable method Of
taxation for the street railway COM
panies will not meet with the ap.
prova1 of the Capital Traction off,
cials. II was indicated last night. I'm
der the proposed plan the taxes OF
NAAAo NSAhRoAy DS NAAe@A
doubled.
The commissioners explained each
proposed measure to Chairman Mapes
and made a resume OF the whole
street railway problem here.
Explaining that the two companies
are so related that different rates OF
fare would not be feasible. the COM
missioners stated in view of the great
disparity in earning power of the
companies some means was necessary
to correct matters.
It was pointed out that Washing
ton has two systems performing
widely different forms of service. The
Washington Railway and Electric
Company operates over twice the
mileage OF the Capital Traction Com
rany. ten OF its lines running to
the District boundaries.
The commissioners expressed seri-
Gus objection to the zone system of
fares. as IL would throw an added
burden on residents of suburbs which
have been built up on the basis OF
a nat fare within the District.
The law authorizing the merger of
all public utilities engaged in similar
service will permit the consolidation
Of the Washington Gas Light Company
and the Georgetown Gaslight Com
pany, both OF which are now owned
and operated by the same manage