The Washington herald., 1920-04-18
MAPES ACCUSES
COMMISSION ONERS
OF PASSING BUCK
:. CONTINUED TRoM PAGE ONE,


Capital Traction Company, the Po-
tomac Electric Power Company, ths
Washington Railway and Electric
Company and all subsidiary con.
Germs Provides light and power
rates on same basis as was in effecl
prior to 1917.
Cuts Gross Income Tax
3. Substitutes for the present 4
per cent tax on gross receipts a tar
OF per cent and a 80 per cent tax
on all profits in excess of per cent
4. Relieves the street railway
companies of the cost Of paying sal
aries OF traffic policemen.
The per cent feature could be
adjusted by the Public Utilities Com
mission whenever the money market
allowed 1t. Woods declared, as the
commission would have the right to
reduce this exemption from the SO
per cent excess proffts tax whenever
conditions justified it.
According to the estimates we
have made" declared Woods. "the
amount Of the tax received by the
city VIII be approximately the same
as now but q far greater portion
VIII De paid by the lines now operat-
ed by the Capital Traction Company,
Wnich are now earning a much
greater return.
Would Equalize Revenues
This will have a tendency to more
nearly equalize the revenues Of tbe
two systems and help them to get
together in a voluntary merger.
which. I think, is highly desirable
1t would also have a tendency to
reduce fares.
don't think the light consumers
are now paying an unreasonable
rate. and my, bill proposes that the
rates for light and power shall, for
the present, remain as they existed
prior to 1917.
THE cost Of maintaining traffic
policemen, which my bill would
eliminate. Is an unjust burden which
is now borne by the car companies.
My bill will also propose that
the salaries and other expenses of
operation of the companies shall be
subject to the approval of the Pub
lie Utilities Commission, thus elm
mating wasteful and extravagant
practices.
Must Merge, willy-Nnly.
TT removes all legal restrictions
and opens the way for a consolida-
ton of the two traction companies
with their subsidiary concerns. II
they do not merge voluntarily, Con-
gress at a later date can take
other steps which would practically
force a merger.
In an effort to take into con-
sideration all features that may be
urged by the District Commits
sioncrs and representatives of the
traction companies I have called a
conference of these parties for
Monday afternoon. and I hope for
favorable results from this confer
ence in getting nearer a merger"
Representative Benjamin K.
Focht, Of Pennsylvania, member of
the District committee, and a for
mer builder and operator OF inter-
urban and street railways, blamed
the long haul feature for the diff
cuIties of the Washington Railway
and Electric Company. A merger
of the two companies would elimf-
nate much overhead expense and
doubling of operating costs in cer>
tain long hauls," be declared.
Capitalization Not Chief Illness.
1ne ueCeSSlIy LOT Cousollodtlon
arises aside from any excess of
original capitalization" Focht said.
which, If it occurred, can not be
remedied at this late date. From
my experience in the interurban
transportation business the demand
for excessive long hauls by lines of
both companies is a very material
source of their troubles.
ssTf fa ahIiShal
roads which prosper on a nominal
fare are those which take on and
passengers at short in