Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-01-22
TRACTION MERGER
BILL HEARING WILL .
BEGIN ON TUESDAY.
House District Committee
Votes to Consider CON-
missioners' Proposal.
ZIHLMAN MEASURE
TO REST FOR PRESENT
Action of Committee on Reclassi-
fication of Salaries to Be
Awaited.

ASdtAOA VI od1o1 lCS W oC
Awaited.
The House District committee today
voted to start hearings next TUESDAY
at 1880 O'Clock on the bill recon-
mended by the District Commission
ers which would permit a merger of
public utilities in the District.
IL also decided to postpone hearings
on the Zihlman bill to increase the
pay of District employees until after
the report of the joint congressional
committee on Redistribution of sal
aries for government employees has
been made.
The committee further agreed to re-
port out the bill introduced at the
request of the District Commissioners
10 make permanent the positions of
thlrd assistant probation officer and
stenosrapher and typewriter at the
foilce Court which temporary posi-
ions expire March 1. and to have En-
Rlneer Commissioner Kutz and Repre-
sentative Woods of Virginia Cooper
aye IN redrafting a bill introduced by
representative Moore of Virginia,
winch proposes an investigation with
plans for building a new bridge TO re-
place the old Chain bridge.
Mr.. kutz to Be Witness.
When the hearings on the bill which
"ouio authorize the merger of the
street railway system start next Tues
day The first witness will be Engineer
Commissioner kurz, with Commits
Sloner Brownlow also appearing
Representatives of the two street
railway companies and representa-
uves of the communities served by
these lines also will be invited to at
tend the hearings and to testify later.
, II is proposed to conduct these hear
ings. taking plenty of time for
thorough and careful consideration
of the subject, but Chairman Mapes
said that if it appeared that the mat
ter should be hurried he will ask
permission of the House for the COM
mittee to conduct aIl-day hearings
while the~House is in session.
Commissioners Brownlow and Kutz
appeared before the House District
committee today to explain the pro-
made a statement regarding the COM
parative standing Of the two COM
panies. and in reply to questions said
that the ultimate goal which is being
as now organized and by others inter-
tsted in the street railway situation
is to have the two companies merge,
Commissioner -Kutz. in feply Ito
questions. admitted that there is con-
siderable water" in the securities of
both systems. He estimated that
there is from $4,000. 900 to $4,000, 600
of water in the Capital Traction Sc
curities and 100000 to $S.000.000 in
the Washington Railway securities.
This is based on fair valuation, as
made by the commits ion on the prop
critics within the limits of the Dis
trict. He reviewed the history of the
increases in rates allowed to both
: companies following request of the
Washington Railway and Electric
Company, saying an increase could
not be granted to one without al
lowing il to the other. because in COM
peting territory the patronage would
all be driven from the line with the
higher rate to the one with the lower
rate. so to grant it to one and not
TO the other would rather penalize the
one to which it was granted.
Zone System DisapprOved.
In reply to Representative Lanham
of Texas, the Commissioner said that
the zone fare system was almost uni
Nersally disapproved by the patrons
of both street car lines, and that in
any event a zone service would not
eliminate the comparative difference
in earning power.
The Engineer Commissioner empha-
sized that the Washington Railway
and Electric Company is now asking
the privilege of earning per cent on
the fair valuation as determined by
the Commissioners, but is contesting
this valuation in the courts.
In reply to questions from Repre-
sentative Benson of Maryland as to
how the companies feel about the
merger bill Col Kutz said he thought
the representatives should be sum-
moned before the committee. but he
cid not believe that the Capital Trac-
ton Company would object to the tax
provision. In discussing these tax
provisions with the committee Com
missioner Kutz admitted that he was
in favor of allowing the companies to
earn 7 per cent on the fair valuation.
He said the tax provisions were mere
" suggestions by the Commissioners
and that they were really taken from
the Cummins railway bill which has
passed the Senate.
In reply to questions from Repre-
sentative Gould of New York. the
District Commissioners said that the
Capital Traction Company is now paying
per cent dividend on its stock and
that the Washington Railway and Flee
1ric Company is paying . per cent on
preferred stock. but has defaulted on
the common stock within the last year
He explained that one of the features
of the bill would be to do away with
the provision of the law which re-
quired each of the compa MES 10 paw
4 per cent on gross receipts. Or about
5000 600 a year by each company
This would release the Washington
Railway and Electric Company. but would
cause the Capital Traction COMPANY TO
pay $500. 900 or $500. 900. Another aim of
the bill is to relieve both companies
from tht Cost cl maintaining cross
ing policemen.
Further Increase Impending.
Commissioner kutz said that unless
some such bill is pa ssed, giving relief
u the Washington Railway and Elec-
trlc Co. it will be necessary TO still
further increase railway fares.
Representative Woods. democrat. OF
Virginia. asked committee considera-
ton of the bill introduced by Repre-
sentative Moore of Virginia looking
toward the building of a new bridge
Il replace the Chain bridge Tie
opinion of Commissioner Kutz was
called for. He said that the Distric,
Commissioners as now organized rec
OgniZe the necessity for a new bridge
Al this location. but they had withheld
communication for ii in their es-
Inmates for two reasons-first be-
ca-se the law forbids them to submit
Estimates more than twice the esti.
mated revenue from District taxation
and. second. because there are other
b-idges which need attention also
However. he said that the District
nmmissioners nave made favor.
Fnle report upon the proposed new
,""e 10 replace the Chain bridge
Representative Gould, republican o
w York. suggested that a repor
ould be made TO the committee OIL
the bridges that are uncertain
Commissioner kutz pointed out tina
new bridge at Calvert street ha.
hem authorized and that the plan.
are prepared. but the Commissioner.
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