The Washington herald., 1921-06-18
House Gets Senate Meas
ure to Permit Volun-
tary Merger.
FORCE TO FOLLOW
FAILURE TO ACT
Focht Says House Com
Mittee United for
Solution.

District Committee, attempted 10
remove the last obstacle yesterday
in the way of a voluntary merger
of the traction companies when he
introduced in the House the Ball
bill, now in the Senate District
Committee. authorizing the car COM
panies to unite.
Shortly after introducing the bill.
Mr.. Focht said: The traction COM
panies must act IL they would avoid
being compelled TO do SO by more
stringent legislation"
Expects Quick Action
The bill. Mr.. Focht said. is expect
ed to be reported out OF the Senate
some time next week and voted on
Immediately.
Its purpose is clear and should
apprise the traction companies that
the present House District Commit
tee members are absolutely agreed
on the necessity OF bringing relief
to the car riders" Mr.. FOcht assert
ed. The people may rest assured
that until remedial Legislation has
Committee will not cease it's united
effort in this direction.
There is little hope for those
who desire a continuance of the1eN-
isting conditions that a split in the
House District Committee is immi-
nent, probable, or even possible. The
presentation OF bills and opinions
on the traction question by mem
bers of the committee, although
sometimes conflicting, are only
manifestations Of their interest and
the seriousness with which they re-
gard the situation. There has been
no desire Of any OF the committee
members to exploit their own meA-
sures. The tendency has been to-
ward a concentrated effort to crys-
tallize these ideas into bomb-proof
legislation that will be protective
and fair, while Il offers the maxi
mum amount of service fer the min
imum fare"
-ChsrEinE Too Much
II Is hoped, said Representative
Focht, that the street car comps-
nies will be induced to merge un-
der the provisions Of the Ball bill
II they manifest an indisposition
TO do so. there is sufficient leEisla-
ton now pending to compel them
to take steps TO correct the evils
that now exist. he pointed out
The fact has been fairly well
established that the railway COM
panies are charging too much for
their service" Mr.. Focht said. Fig
ures lately compiled have served to
strengthen this contention. 1t 10
therefore the object Of the House
committee TO reduce the fares and
give this excess to the car patrons.
And it will succeed"
Under the Ball bill the Washing
ton Railway and Electric Company
is permitted 10 acquire the property
and franchises Of the Potomac Elec-
trio Power Company. with certain
provisions as to the consent Of the
stockholders Of the two companies.
1t also provides for the merger of
the Washington Railway and Elec-
trio Company. the Capital Traction
Company. the Georgetown and Ten
nallytown Railway Company. the
Washington Interurban Railroad,
the City and Suburban Railway Of
Washington. the Rockville Railway
Company OF Montgomery County.
the East Washington Heights Rail-
way. the Washington and Maryland
ginia Company. and the Washington
and Old Dominion Company.
Conditions of Merger.
The conditions are: That the
owners Of IS per cent Of the capital
stock of each of them agree TO
merge and consolidate into a single
company to own and operate all the
rights, estates, works, properties
and franchises owned by them"
The bill further provides that.
with the approval OF the Public
| Utilities Commission. the new COM
pany may issue such stocks and
bonds or other evidences Of indeet-
edness and execute such mortgages
and deeds Of trust and other securi-
ties as may be necessary.
The bill has many things in com
mon with that known as the Com
missioners' bill" Under that bill IL
! is proposed to remove the Z per
! cent gross tax, substituting
6 per cent tax on the net income,
| all earnings remaining after the
! payment Of the s per cent 20 he
! taxed so per cent The contention
1 is that this would tend 20 equslize
| the earning power Of the two COM
panies and thereby form a basis
/ for a merger II also provides the
authority under which the wash
| ington Gas Light Company might
/ be merged with the Georgetown
Gas Light Company.
Sec Onc-Cent Drop.
The Commissioners believe a merger
will not bring less than a 7-cent
1 fare until there has been a drop in
/ operating costs. materials. etc 4
merger would facilitate the han
i ding Of passengers at the rush
hours and the re-outing OF the cars
would also do much 10 reduce the
cost Of operation, but the Commis-
sioners do not believe that this
saving will warrant a reduction OF
more than l cent in the present
| rate.
william J. Ham, president OF the
| Washington Railway and Electric
Company. yesterday wrote the COM
mission. Mr.. Ham states that
ssince the last hearing no material
changes in conditions have occurred
to Justify a change at this time in
the rate OF fare. During the year
ended May 81. 1921, the total num-
Der OF revenue passengers carried
by the Capital Traction and the