The Washington times., 1920-01-22
Commissioner Kutz Explains
Plan to Force One Line to
Pay Taxes OF Both.
MUCH WATERED STOCK
W. R. and E. Company's Hold
ings Worth 100000 Less
Than Certificates.

Only an act of Congress can pre-
vent another early increase in street
car fares in the District of Columbia.
Engineer Commissioner Kutz
sounded this warning today whea
he appeared before the House Dis
trict Committee to urge speedy ae-
ton on a bill proposed by the Public
Utilities Commission, and which he
believes will remedy the street car
situation.
Last Increase Little Aid.
In spite OF the increased fare grant
ed last fall. to be effective until
March 1, next, the Washington Rail
way and Electric Company is earn
ing only a little better than per
cent, Colonel Kutz told the commit
| tee.
On the other hand, the Capital
Traction Company, which vas nOt /.
1 party to the petition for fare tn
crease last fall, earns 10 10 ~ par
cent as against z to per cent e2rR@s
under the straight Scent tSTe.
Members of the comm ttes core 80
red with Congressman BENSON OF
| Maryland, in the belief that "this
street railway question is about the
biggest thing that has come before
this committee"
Former hearings on the subject
| will begin Tuesday next.
Would Tax One Line.
In brief, the Utilities Commission
plan is to repeal the law that requires
the street railway companies to pay
1 per cent on their receipts as a Dis
trict tax; IL would require the Capt.
ttol Traction Company to pay so per
cent tax on it's operating income, and
use this revenue to relieve the Wash
ington Railway and Electric Company.
At the present time, each company
hauls approximately 10000, 900 pas
| sengers each year. Therefore. both
lines pay the same tax into the Dis
trict treasury. Under the proposed
measure. the Washington Railway
and Electric Company would pay MOTH
| ing, and the other company would
pay approximately 100000.
Congressman Benson asked Colonel
Kutz II the Capital Traction Com
pany could carry on it's normal i'm
provements and extensions under such
tax.
1--WE have gone into that also"
Colonel Kutz answered. They can
finance all improvements and still
earn their 9 per cent"
Colonel Kutz urged that the heads
| of the two traction lines be callei be-
fore the committee when formal hear
ings begin, because" he said, I'VE
want to settle this problem with the
aid and cooperation of the compan-
les. That is the only way 1t can be
done"
Chairman Mapes stated that he
would ask the heads of both COM
| panies to appear at the hearings.
Representatives of various civic or
ganizations will also be invited to at
| tend the hearings. and give the COM
| mittee the advantage OF their views.
Members OF the committee asked IL
passage of such bill as the Utilities
| Commission proposes would not force
a memger of the two traction sys-
TENS.
THE bill does not In itself force u
merger. but opens the door to it,
| Colonel Kutz said. "a memger Is the
goal toward which we are working"
TT would at least put the com-
panies on notice that the best move
they could make would be to agrea
to a merger" remarked Congressman
Drane of Florida.
Asked about the charge OF inef-
icient management that has been
made against the Washington Rail-
way and Electric Company, Colonel
Kutz said IL was found to be untrue.
Both companies operate at virtually
the same expense per mile, he said.
| Zone Pls. Opposed
Congressman Lanham asked what
the commission thought of the zone
system of fares. Colonel Kutz said
that the plan met with such universal
opposition. both by urban and subur-
ban peoples, that the commission dis
carded Il.
Congressman Ben johnson OF Ken
lucky wanted 70 know how much
water the commission had found in
the two companies.
"It is hard to state on n percentage
basis just how much water there is,"
Colonel Kutz said, "but our conclu-
sion was there Is about $1,000 900 90
$4,000. 900 OF water In the Capital
Traction Company and t7,000.000 to
$4,000, 900 of water In the Washing
ton Railway and Electric Comparv."
| Congressman Drane asked II tho
people OF the District pay interest
on this water"
mo" answered Colonel Kutz, they
pay interest only on the fair valua-
ton nxed by the Utilities Commis-