Evening star., 1921-01-27
SEEKS TO EXPEDITE
CAR MERGER HERE
Representative GouId's Bill
Would Authorize Union
With P. E. P. Co.

Steps to expedite legislation de-
f.Sned to bring about a merger OF the
two street railway systems in Wash
lnston were taken in the House toaay.
Carrying out instructions from the
pouse District committee, Represen-
tative Norman j. Gould of New York
introduced bill to remove the OBJ
struction in the charter of the Wash
ington Railway and Electric Company
which prevented consolidation with
the Potomac Electric Power Company.
1t is believed that the enactment of
the Gould bill. which carries the sup
port of the District committee, will
place the Washington Railway and
Electric Company on footing where
successful negotiations for merger
with the Capital Traction Company
can be carried on.
Bill to Force Merger.
Chairman Mapes of the House Dis
trict committee. also following. ia
structions Of the committee yesterday.
has named committee of five to
draft bill which will force the Capt.
tai Traction Company and the Wash
ington Railway and Electric Company
to merge. This committee consists
of Representative Carl E. Mapes OF
Michigan, Anderson H. Walters of
Pennsylvania and Clark Burdick of
Rhode Island, republicans and Repre-
sentatives James T. Woods and Fritz
G. Lanham of Texas. democrats.
The committee seems pretty well
assured in it's own mind that the
way to effect a merger of the street
car companies is through an excess
profits tax which will recapture into
the District treasury the extra profits
now accruing to the Capital Traction
Company through increased fares
that had to be granted to both COM
YNo mi fhn cJ,;v
and E!eetrict Company might con-
tinue to operate.
The proposal of an excess profits
tax which would recapture from so
to 100 per cant of the net earning
above or per cent would carry
be revoked as soon as the two COM
panieS merged.
Meet This Afternoon,
The committee of five appointed
today expects to meet this afternoon.
and feels confident that a street rail-
way merger bill can be worked out
within a couple of days It is the in
tention of this committee to devote
its best efforts to getting such a bill
passed at this session of Congress-.
The bill introduced by Representative
Gould Of New York, which carries a
favorable recommendation from the
House District committee, proposing to
amend the act creating the Washington
Railway and Electric Corporation is
identical, with the exception of a single
wore. with bill introduced in the Sixty
foulssl Congress by Representative Ben
Fairchild.
1t provides that the w. r. & e Co
shall be authorized and empowered to
acquire, use, operate and enjoy all the
estate, property. rights and franchises
Of the z. E. p. Co.
Consolidation With Power Co.
1t is provided that the power COM
pany shall not be acquired by the
street railway company unless and
until consent and approval shall first
have been given by the owners of
record of at least rs per cent of the
capital stock of the railway company
and similar percentage of the CAPT
tai stock of the power company. 1t
proposes that when the stockholders
of the two corporations shall have
given their respective consent and
approval. then upon filing with the
recorder of deeds for the District Of
Columbia of such extracts Of the pro-
ceedings of the shareholders of these
two corporations showing their as
sent, the recorder of deeds shall re-
and rights of the Potomac Electro
Power Company shall then be vested
in, held, used, enjoyed. exercised and
be enforcible by the Washington
hallway and Electric Company.
Thereupon the capital stock of the
power company shall be annulled.
Provision is made that the existing
liabilities of the Potomac Electric
Power Company and the rights of it's
creditors shall in nowise be preju-
diced. No action or proceeding to
which the Potomac Electric Power
company is or may be a party shall
abate in consequence of the CONSOLE
dation.