The Washington herald., 1921-06-12
Zihlman Suggests Plan
To Guarantee Six Per
Cent Income.
FAVORS DRASTIC
STEPS IF NEEDED
Separate Rates of Fare
Held as Practicable
Solution.

Merger Of the Warrington street
car lines and reduced fares can be
accomplished by offering the trac-
tion companies certain concessions,
or by the application of more dras-
tic measures. according to Repre-
sentative Zihlman OF Maryland, u
member of the house District com
mittee.
The railway companies at the
present time are obliged to pay a
per cent gross tax, bear the
expense of paving certain sections
Of the street lying between and
adjacent to the tracks, Mr.. Zihl-
man emphasized In addition to
these many expenses many thou
sands of dollars are paid for the
services incidentally rendered to
the car companies by crossing
policemen.
Would Gsarantee 9 Per Cent.
The plan entertained by Repre-
sentative Zihlman relieves the trac-
ton companies of these numerous
expenses and the per cent gross
tax with a guarantee of per cent
earnings based on the combined
valuation of the roads, IL being
understood. that in order to secure
these concessions there must be
merger between the Capital Trac-
ton and the Washington Railway
and Electric company. After re-
ceiving its earnings of 6 per cent
the company shall operate on the
cost service plan"
In the event that the companies
refused to consider such a pro
posal, Representative Zihlinan IL
in favor of treating the two differ
ent corporations individually in fix
ing a rate rather than to consider
them as q whole.
Fare Based on Needs.
The present rate of fare was
based not on the fair valuation OF
each company but upon the needs
of the Washington Railway and
Electric company. The Scent fare.
according to testimony offered by
the commissioners. was given to
the Capital Traction company. in
order to prevent congestion upSc
their lines owing to expected fall
ing of of thes patronage of the
washignton Railway and Electric
company.
The Washington Railway and
Electric company and the Capital
Traction company are separate and
highly competitive companies, Rep
resentative Zihlman maintains, and
there appears to be no obstacle in
the way of establishing a separate
rate for each company. 1t has
been emphasized by those opposed
to such a .plan that the resulting
decrease in the patronage of the w.
r. & E. and the probable conges-
ton on the lines of the Capital
Traction company following re-
duced fares on the latter's cars.
would really be more detrimental
to the general public than the ex-
ira fare now imposed.
Might Force Merger.
The decrease of fares on the lines
of the Capital Traction company
would necessitate an increase OIL
the lines of the Washington Rail-
way and Electric company. This
would, Representative Zihlman
pointed out, make a still greater
difference in the fares. People in
a position to choose between the
two companies would naturally
patronizS the one with the cheap
est fare. Under such conditions the
Washington Railway and Electric
company would either be forced 10
merge with the Capital Traction
company or declare itself bankrupt.
which would ultimately result in
the same thing
Public Entitled to share.
The successful company, accord
ing to Representative Zihlman, is
undeaiably entitled to the success
it deserves, and the public is en-.
titled to share. to some extent. in
this success. To compel the patrons
of a fiourishing and successful
street car company to pay a fare
in excess of what has been found
to be just and adequate because
a competing company that has i'm
poverished itself must receive a
greater fare or fail altogether.
Entitled to Fair Return.
1T is not my opinion said Repre-
sentative Zthlman, that the cor
porations should be unnecessarily
panies play a vitality important part
in the economic life of the city.
They are an absolute necessity, and
being SO should be well regulated.
AS public utilities, they are entitled
to a just and fair return upon their
Investment, and at the same time
the public is entitled to a fair re-
turn upon the money it pays into
the corporation for the service that
is given them.
The conditions now existing in
Washington should be improved.
There appear to be many solutions,
some one of which should be ac-
cepted by the traction companies.
This failing" concluded Representa-
tive Zihlman. IT am in favor Of
congress taking drastic steps to