Evening star. [volume] (Washington, D.C.) 1854-1972, 1921-01-26
HOUSE TAKES STEP
TO FORCE MERGER
Of TRACn0NuNES
Committee of Five Author
lied to Draw Up Bill to
Combine Properties.
CONGRESS READY TO LIFT
LEGAL BAR TO PROPOSAL
District Committee Votes Is to l
on Both Issues-Favors Includ-
ing Potomac Electric Co.

ing Potomac Electric Co.
Congress took the first definite
step today toward the solution OF
the street railway problem in Tn,
National Capital. when the House Dis
trict committee by formal vote OF
IL to 1. in each case. determined upon
the two following actions:
First. Representative Norman J
Gould Of New York was instructed
by the committee to draft a bill and
present it to the House with a favor
/ able report from the District com
mittee, which will remove the specifin
prohibition set by Congress against
the consolidation of the Washington
Railway and Electric Company and
the POTOMAC Electric Power Company
Second. committee of five was au-
thorized, one member of which will b.
Chairman Mapes Of the District COM
mlttee. TO draw up bill designed to
force a merger of the Capital Traction
company and the Washington Rail-
way and Electric Company. which will
include the Potomac Electric Power
company in the merger as part of the
properties or the Washington Railway
0--~
Want to Include Power Company.
This action was taken by the COM
mittee after many divergent views
were expressed by members regarding
the merger, and ways in which it can
be brought about. But the sense of
the members was emphatically in ia
vor OF a merger which will include the
Potomac Electric Power Company
Chairman Mapes held out against
all efforts to report out merger legis-
alton. He frankly told Representa-
tive Woods Of Virginia. to consider
specifically called, that it would be
impossible to get action on his bill
this session. Mr.. Mapes, however.
found himself in q decided minority.
because on both votes. taken. the
members voted Is to against him
Chairman Mapes at the opening OF
tho committee presented a PROPOSE
ton which he had drafted in the
form OF bill ready for presentation
20 20 the & House which preposss to lew
against earnings of all street rail-
way companies i'm Washington above
q net profit Of per cent.
Daseunsed With ConmisspenHrs.
Mr.. Mapes explained that he had
discussed this proposition with the
District Commissioners, with Repr.-
sentative Ira C. Copley of Iflino,.
who is = practical public utilities
owner and operator; with Chairmap
Esch OF the House committee on in
terstate and foreign commerce and
VINO Is joint author of the Eecb-
leaders.
He said that the only way in which
merger Of the street railway com
panies can be brought about wouId
De through such legislation as would
actually hurt the more prosperous
companies. He was challenged by
the ground that if the Capital Trac-
ton Company saw all Of its earnings
above s per cent were to be confis-
Gated they would use them in buying
improved equipment and in paying
large salaries to employees.
Representative Woods of Virginia
put before the committee his bill.
which proposes that instead of the
present base tax of per cent on the.
gross earnings. of both street car
companies. franchise tax of 1 per
cent be substituted. His measure also
proposed to relieve the street car
companies of the cost of maintaining
street improvements and the cost OF
maintaining traffic policemen. The
portion of his bill designed to force a
merger OI lHc street car COMPANIES
proposes an excess profits tax of so
per cent on all net earnings above
per cent.
Representative Woods explained
that by allowing a prosperous COM
pany to retain SO per cent of the net
earnings above per cent this would
be an inducement to economic man
agement and would prevent running
up the cost of operation abnormalfy
as it had been contended would hap
pen under the Mapes plan.
Forces Issue to Vote.
1t was Representative Ben John
son Of Kentucky who forced action
by insisting upon vote in the COM
mittee on whether the committee
favored allowing the Potomac Elec-
trio Power Company and the Wash
ington Railway and Electric to con-
solidate. Mr.. Johnson contended that
this has been for years the one OBJ
stacle preventing the merger of the
two street railway systems. He point
ed out that it was unreasonable to ex-
pect the Capital Traction Company
putting into merger all Of its prop
erty, to agree on terms which would
allow the Washington Railway and
merger its most valuable property.
the Potomac Electric Power Company.
Representative johnson got strong
support of this proposition from Rep
reSentat1VeS burO1Ck or Rhode ISlaNf
Focht of Pennsylvania. Woods of vir-
ginia- Gould of New York. Benson Of
MARYLAND and Murphy Of Ohio.
Those who voted against Chairman
Mapes in both propositions were Rep
resentatives Focht. Pennsylvania: :
wheeler, Illinois: Gould. New York;
Zihlman. Maryland; Walters. Penn
sylvania: Murphy, Ohio: Burdick.
Rhode Island, and Williams. Illinois.
all republicans: Ben johnson, Ken
lucky; Drane, Florida: Benson, Mary
land: Woods. Virginia, and Lanham.
Texas.