The Washington herald., 1921-10-11
CARCOMP PANIES
ARE FLAYED in
HOUSE, HEARING
'Profiteers' Paradise" Is
Rep. Walsh's De
.scription.
NO CONCESSIONS
BEFORE MERGER
Bill Is So, Amended at
Suggestion of Fitz-
gerald.

Playing the street-car companies
in Washington for the traction sit
uation here. insisting that there is
vast room for Improvement and
that any bill providing for a
merger of the traction companies
should be framed to benefit the
people and not the stockholders of
the companies. and characterizing
Washington as a "profiteers' para
disc" Representative Walsh, Mas
sachusetts. in opposing the Woods
day, declared that 1t was time that
grating on the public should stop
There are two ways to make
these corporations consolidate"
legislation holding out certain con-
other way is to impose burdens OF,
the companies If they fail to con-
solidate."
Concessions Made Conditional
Opposition to the bill, based upon
the contention that the measure
would not accomplish it's purpose
of forcing. a merger OF the two
street-car companies, gained a
point by having the bill amended
| to withhold any concession to the
| street-car companies until such
time as the companies should effect
a consolidation.
Representative Zihlman in sup
porting the bill explained that the
traction situation in Washington
had been a problem for a period oil
ten years and that the only possible
! solution would be a merger of the
| two companies. The principal OBJ
stacle in the way of a consoiida-
ton. Zihlman stated, had been the
question of management. and be-
cause of this inability to solve the
managerial question. the people had
continued to pay an unreasonably
high rate of fare. Should Con-
sress pass the bill and the street.
car companies see that they meant
business. Zihlman believed the cor
porations would merge.
Separate Rates Advocated.
In regard to the last section OF
| the bill, imposing a separate rate
of fare for each company based upor
| their Individual fair valuations, in
the event a merger Is not effected
within n specifid time, Zihlmar
pointed out that this would haNE
| the effect of bringing the corpora
tions togethcr Otherwise the far'
on the Capital Traction Company:
lines would be materially reduced
which in itself would be desirable
Ioh % h
ington, declared that he was III
favor of a short. sweet bill provid
ing for a separate rate of fare fol
each company"
Representative Stafford. Wiscon-
sin, opposed repeal of the paving
tax on the ground that this was a
charge that should be borne by the
street car companies owing to the
damage caused by the cars.
stafford Against Delay.
Il am in favor of bringing in q
| bill at once compelling these COM
panies to consolidate, rather than q
hold something dangling in the all
as this bill does" Stafford insisted
Further opposition to the bill
was offered by Stafford, who con
tended that the bill would gram
certain concessions without any
assurance that the corporation!
would merge. Representative San.
ders, Indiana, opposed the bill fol
the same reason.
No one would support this bill
unless it would bring about {
merger" Sanders declared, "and
do not believe that a merger woulc
result from this bill"
| Representative Woods, father o
the bill, explained at this point thai
the taxes would increase in tn,
event that the companies did no
consolidate.
Chairman Focht declared Their,
was no objection to amending the
bill, and, in fact, he had an amend
ment which had been proposed b!
| Representative Fitzgerald, of tn
| House District Committee, whicI
withheld all, concessions to tn
street car companies until they haC
complied with the conditions of tn
bill. The amendment was read anC
agreed to.
Representative Keller, Minnesota
spoke in favor of municipal owner
ship, and was followed by Repre-
sentative Lampert. Wisconsin. wht
objected to the Woods bill becaus
it would repeal the paving tax.
| Chairman Focht expects a vote t.
j be taken on the bill today following
debate.