Evening star., 1921-10-10
TAXATION CLAUSE
IN CAR MERGER BILL
OPPOSED
Chairman Focht of House
Committee Emphasizes I'M
portance of Legislation.
MEASURE UP FOR DEBATE
Bill as Introduced Would Change
the System Of Taxing the
Companies.


Vigorous opposition u provision in
the bi!, desi;.Eed 10 force merger of
the Two railway systems in Washing
non which no4id change the system Of
taxing the companies and relieve them
from other costs was voiced when the
bin came up for consideration in the
House today
With time unlimited for general de-
bate. this so-cailed street railway mef-
ger bill was the special order Of busi-
ness for today and tomorrow. Chair
man Focht Of the House District com
mtttee took the floor to explain the
Dill. and was interrupted by frequent
inquiries and debate regarding the tax
reIef granted the street car companies
Representative Joe Walsh Of Nasse-
ciuS-tts. Representative Sanders a:
Indiana and Representative Graham uf.
iilincIS We're the first TO oppose the
Dill on these grounds.
Criticism by Mr.. Walsh.
when the measure was first Gale.
up by Chairman Fochr. Representative.
Walsh criticised the fact that II had beer
Introduced. referred TO committee ALI,
reported out all on the same day. Oc-
tt her Z, placed on the union calendar
ahd brought up for business on OctO-
Der II" Representative Focht explainei
that the bill had been previously
amended and ordered reported out by
The committee. and that the revised hill
ana report We're hurried through on
October Z in order to be ready for con-
stderatIon in the House today
chairman Focht endeavored to have
genera debate limited TO three hours
but Representative Rlanton Of Texas.
member of the House District COM
mit,ee. objected. Representative Sin
Eott of Oregon was called to the
chair TO preside by. Speaker Gillstt
Mr.. focht told the Housc that outside
Of expansion in school facilities this
was the most important legislation
anecfing the District that will come
before the House for some time.
keprese ntative Focht reviewed the
offensive effort that had been made
by industrial leaders and by Congress
10. straighteh out the street railway
culiar problems of urban and inter
urban lines involved in the local sill
uation.
Representative Sanders argued thai
the change in tax should be made de-
pendent upon consolidation Of I'll,
street railway property 1t was ex-
planned to him by Representative
the subcommittee which held hear
ings and who wrote the report on ths.
revised bin. that time limit until
mex: July is granted the companies
fits of tax reduction through consol.-
dation. following which an excess
profits tax would be imposed.
Sentiment for Merger Unanimous.
Chairman Focht told the House
that there is unanimous sentiment
that a merger bill must be passed.
How TO bring a merger about Is the
particular problem" Mr.. Focht said.
He explained the tax measures pro-
vided for in the bill and the reasons
that actuated the committee in ap-
proving the proposal
Representative Graham OF Illinois
discussed the question Of establish
ing a fair return and the attitude. of
the House District committee in hx-
ing A certain amount which the Dis
trict lines should be allowed to earn.
Representative Blanton of Texas
took the floor as leader of the oppo-
stion to the merger bill. He charged
as democratic member of the com
mittee. which had considered the To-
cal problem that the bill under con-
sideration would neither reduce fares
nor bring about merger. He asked
his colleagues if they were in favor
of relieving the street car companies
from paying s6S9.550 in one item OF
tax and saddle this upon the people
of the country. who have to pay 30
per cent of the reduction in revenues
for the District that would entail
Presents "EssentinI Facts"
Representative James 7. Woods of
Virginia laid before the House a
businesslike statement of the essen
tial facts on which the House District
committee drafted the proposed leg
isIation. In response to repeated
questions from republican members,
especially from Representative Ora
ham of Illinois. Mr.. Woods explained
how a fair return on a fair valua-
ton of the property of the street
railway companies was arrived at-a
fair valuation being determined not
from the companies own claims, but
from a survey made by the Public
Utilities Commission at pre-war
prices.
Mr.. Woods told the House that.
roughly, this valuation was. for the
w. r. & E. Company, s1s.o0O.oo0; for
the Capital Traction. $15.00o.00o. and
for the p. f. =. Company, s16.o0o.0oo.
He explained that all Of the capital
stock of the T. E. P. Company is held
by the W. r. & f. Company Repre-
sentative Woods next pointed out that
the gross receipts OF each railway is
about the same. but their net receipts
are very different. The W. r. & f.
Company. he said, operates 1So miles
Of trackage. while the Capita! Trac-
tien Company, operating in a con-
gested area. operates only about
sixty-two or sixty-three miles of
track.
Answers Criticism.
Answering sharp criticisms made
by Representative Blanton OF Texas
that this bill is> really the Woods bill
and was introduced at the eleventh
hour bearing Chairman Focht's name.
Representative Woods explained that
it is not any one mans bill. 1t IL the
committee bill, he said. and very pro-
perly introduced by the chairman at
my request. This is in accordance
with the usual custom for the chair
man to reintroduce any bill amended
and re,lrafted by the committee.
Representative Woods pointed out
that tho survey that was made has
shown tho Capital Traction Company
earning about II per cent and the
". r. & e. 4 per cent. The situa-
ton has changed q little, he said. so
that now the Capital Traction Com
pany Is earning about 1oh per cent