The Washington times., 1920-01-10
To Bring Merger Through Trimming
Fat From Capital Traction
By BILL PRICE.

OF opinion that Congress will not authorize municipal
ownership of the street lines here the District Com
missoners have recommended to the House District
Committee Legislation that is intended to the in
equities OF situation that has become absolutely unbear
able to helpless people whose only relief must come
through Congress-
ownership in this city-and that should not be will
refuse to enact legislation that will give strong munich
pal interest in and supervision of the street railways along
lines that we'll recognized successful in other
cities then the Commissioners who also compose the Public
Utilities Commission of the District have laid before that
body the next best proposition which practically nothing
but big club to force the Capital Traction Company into
sort of merger with the weak Washington Railway
and Electric Company.
This merger the opinion of the Commissioners would
result in relieving situation which every Senator and Con-
gresham personally knows to be unjust irritating and
reasonable
The letter transmitting to Chairman MAPES the pro-
posed bill practically admits that the Utilities Commission
will be forced to raise fares that the Washington Rail
way and Electric Company may obtain the the
Commission has heretofore decided it is entitled to.
But in doing this the Commission will hand to the
Capital Traction Company big chunk of public money
which that road does not ask for and is not entitled to-
So the Commissioners reach the conclusion that If the
Capital Traction is heavily taxed along clearly legal lines
thereby removing LARGE punches Of financial fat accumua
ing around its vital organs the stockholders find 1T to
their advantage to enter negotiations for merger that will
bring road, management uniform fare which
will be lower than that charged and put into District
control contingent fund that will be used for extensions OF
track and betterments.
The proposed bill first authorizes merger of the two
companies and also of the two companies probably now
prohibited under the La Toilette law applying to the District
Then is proposed tax the privilege of using the
streets of Washington the tax to fall heaviest the
pany enjoying the greatest privileges and benefits That
happens be the Capital Traction This feature of the
bill is almost identical with contained in the Cummns
bill for steam railroads. and aimed to compel the strong
roads to lend a helping hand to the weak
The tax is graduated one operating income. AS
explained an operating income is the difference between
operating and operating expenses The Capital
Traction is entitled to return on It's valuation
about 100000, per cent. All operating income above
that 100000 will pay fat tax If it should be $5O00O
above the will be so per cent Above $15OO the tax
would be IS per cent all going into contingent fund from
which would be made the roads extensions OF lines
built which would be OWNED by the District
This tax would replace that paid gross
ng The W. r. and E. pays something like 100000
year on gross earnings and $4,000 year in salaries TO
crossing policemen 1t would be relieved of these thereby
helping to remove the disparity in the finances of tie two
roads.
nay situation 1t should take drastic action that w Drepen
grabbing pockets Of the public hundreds OF thousands OF
dollars in these hard days.
| Here along the Telephone Company with its
hands out for money from the public Is all this 10
reduce the cost of living in Washington