The Washington times., 1921-04-04

of the House and Senate DiStrl
Colonel Kutz's opinion was express
ed in answer to a question from SEN
ator Capper, of Kansas, as to how
long the present street car fare would
continue.
Colonel Kutz told the committee
that unless pressure was exerted on
the street railway companies, that
they would not merge voluntarily.
Representative Focht, of Pennsyl-
vania, chairman of the House Com
mittee on the District of Columbia,
asked Colonel Kutz what the pub
lie utilities commission proposed to
offer to the Capital Traction Com
pany to merge with the Washington
Railway and Electric Company when
the Capital Traction Company has the
better proposition.
do you propose to put the screws
on the Capital Traction Company
asked Congressman Focht.
BASES FOR MERGER.
Colonel Kutz answered that the
utilities commission did not propose
to put "the screws" on the Capital
Traction Company. He said that the
position of the Capital Traction Com
rany was not due to superior man.
agement in the operation of the sys-
:ern, but to superior advantages in
the way OF franchise. for which they
paid nothing. He explained that there
were three bases for a merger:
First on valuation: second on earn
ing power. and third, on the value as
represented by securities.
Congressman Focht asked Colonel
Kutz IL he did not think that the
Washington Railway and Electric
Company and the Potomac Electric
Power Company would not equal in
value the Capital Traction Company,
so that a merger could be entered
into on that basis.
Colonel Kutz explained that the
utilities commission thought the ad-
visable thing to do was not to agree
to a merger of the Washington Rail-
way and Electric Company and the
Potomac Electric Power Company un-
less this merger was conditioned upon
the merger of these companies and
the Capital Traction Company.
He said that the Washington Rail
way and Electric Company desired
very much to merge Immediately
with the Potomac Electric Power
favor of this merger unless 1t was
conditioned upon the ultimate merger
of the two street railway systems.
EXCESS TAX BEST MEANS.
''The best way to bring about a
merger" said Colonel Kutz. would
be an excess profits tax, so that each
company would derive the same
amount of profits. as is done in the
Esch-Cummins bill.
IF the condition which applied
to the railroads of the country can
be equitably solved it can be done
in this instance also, where the same
condition exists but on a small scale"
Senator Capper interrupted Colonel
Kutz with the statement that there
was a feeling in Congress that the
present street railway situation
could not go on any longer.
"This is especially true" he said,
because the Capital Traction Com
pany gets such a big return, while
fhe Washington Railway and Electric
Company is only allowed a reasonable
return."
Senator Ball, in the opening state
nent at the meeting. explained that
the conference was being held so
that the members of Congress might
ret the different viewpoints of Dis
trict officials, officers of the COM
ranies, and the citizens of the District.
aTF JUST. 1T MUST BE-,
"Tf it Is just" he said, "that a
merger be accomplished we will see
that the street railways are merged.
We appreciate that, with its suburban
railways the Washington Railway
and Electric Company does not reap
the benefit that the Capital Traction
Company does in the congested sec
tions of tho city. But 1t is necessary
20 the future of Washington that the
suburban residents get good service,
ind we realize also that 1t is not a