Evening star., 1921-06-14
VOLUNTARY union
AND 7-CEM FARES,
z|HLMAN PROPOSAL
Recommendations on Hear.
ings to Be Made to Dis
trict Committee Ready.
URGES PEOPLES COUNCIL
ON PUBLIC UTILITIES
Separate Commission Suggested.
HoldSService on Cost Plan Solu-
ton of Traffic Troubles.

Chairman Zihlman of the special
subcommittee of the House Distrlct
committee. which has been holding
hearings on legislation designed to re-
lieye the street car situation in WASH
inston, will make his recommendations
either to the full District committee to-
morrow or to the special subcommittee
on Thursday.
Representative Zihlman's conclusions
are:
First. that seven-cent carfare IS
Immediately possible. -
Second, that with certain concessions
q voluntary merger may De enecteo
which should make possible four lick
cts for 25 cents.
Third, that if the companies fail to
merge, under such concessions, the
intent of the public utilities act
should be put in force establishing a
differential fare on the two companies
Fourth, that differential fare Will
bring the Washington Railway and
Electric Company to terms and mer-
ger will result.
Fifth. that there ought to be sep
arate public utilities commission.
PEOPLES Council Suggested.
Sixth, that there ought to be peo-
pies council to represent the people
before the Public Utilities Commits
sion.
Seven, that a service at cost plan is
the ultimate solution of the trafhc
troubles in the National Capital.
Chairman Zihlman starts of with
the conviction that all talk of a s.
be impossible. 1t would wipe out
any earnings on the investment Of
$32.5s6,000. which is the fair valua-
tion of the street railway property as
of December 81. 1920.
He emphasizes that a reduction OF
u cent in tokens, making a straight
7-cent fare. would net only 6.04 per
cent on the fair valuation OF the two
companies.
Chairman Zihlman says it is a Ques-
whether it wishes to go all the way
or only part way in settling the
street railway problem.
According TO his belief. il Congress
would aboliah fhe~4, per cent gross
tax on the street car property the
men and the tax for paving as an in
ducement, the companies might be
persuaded to merge. This would at
once establish q seven-cent fare and
probably four tickets for 25 cents.
Bill Recommended.
A bill should be introduced. he said.
making these concessions contingent
upon a merger. 1t would enable the
companies to get together AMI work
out a basis of fair return that would
give the people in a short time a four
lor-25-cent rate.
As an alternative, In the event that
they fail to merge and reduce fares.
Congress should put into effect the
purposes of the public utilities act
that stipulates a separate fare for
each company, Representative Zihl-
man says.
He does not hold. as the Public Util-
6ae9 Commission does, that such ac-
Gon would drive the companies far
GhE apart He does believe that it
vo0d create much trouble and con-
6n8t0n. but would force them togeth-
er. SO that they would be bound to
ma1ge If a merger IS brought about,
he argues, it should be written into
kbo law or taken up as subsequent
h&99ation for q cost-at-service plan
NTH q net income tax.
-Four Tickets for Quarter.
Hs decision Is that a merger would
tDe4n q seven-cent straight fare at
once and that with the tax relief fea-
cent rate could be granted.
Illinois, a member of the House Dis
trict committee, today sent a letter to
Walter l. Fisher, traction expert of
Chicago. asking Mr.. Fisher if it would
be convenient for him to make a study
of the street car situation in tie Ma
tional Capital. when he could UNDER
take such work, and what his charges
would be.