Evening star., 1921-08-19
|C0L.. KUTz PLEASED
BY MERGER ACTION
Hopes Present Congress
Will Settle on Rail-
way Question.

Col. Kutz, chairman Of the public
utilities commission, expressed graft
f1cation today over the action Of the
House District committee in report
ing favorably the revised Woods bill
to solve the street railway problem.
II am very hopeful now" said the
colonel, "of seeing the present Con-
gress take action on the street rail-
way question"
Col. Kutz pointed out that the
Woods bill as finally adopted by the
House committee contains many OF
the provisions Of the Commissioners
bill and meets with his approval. al
though it differs in some respects
from the bin OF the Commissioners.
Our bill and the bill just approved
both authorize the two street railway
companies to MERGE" said the colonel.
Both bills would relieve the COM
panies from paying crossing police
men and from paving charges"
Same Object in View.
While the taxation clauses differ
slightly, they have the same object
in vfew-namely,. to equalize the
earning power of the two roads.
HC VIII do dppTotCu bupolllukSS q
l per cent tax on the gross receipts of
each company, instead OF 4 per cent.
and further provides for tax of SO
per cent on net earnings over and
above a return Of per cent on the
fair value of each company.
The Commissioners bill would abol-
ish entirely the per cent gross re-
ceipts tax and substitute a tax of SO
per cent on net earnings in excess OF
a per cent return on fair value
Under the Commissioners bill the 4
per cent gross tax would be restored
after the companies had merged.
See Consolidation Nenr.
The belief prevailed at the District
building today that II Congress en-
acts the bill as it now stands Wash
ington will be nearer than ever before
to obtaining a consolidation Of it's two
street railway systems.
Milton E. Allies. chairman of the
board OF directors of the w. r. E..
said that while he has not had an op-
portunity to study the bill as ap-
proved. he believes 1t is step in the
right direction.
George E. Hamilton. president OF
the Capital Traction Company. could
not be reached today.
William F. Ham, president OF the
Washington Railway and Electric
Company, is out of the city, and s.
r. Bowen. vice president, said he
preferred not to make statement
on yesterdays action Of the House
committee.
There are two provisions in the
bill that will, 1t is believed, tend to
bring the companies to an agree
ment on terms Of merger. One is the
proviso that different rates of fare
shall be established for each road
next July If a merger has not beer
brought about by that time. The
other Is the taxation clause. which
will have the effect of equalizing the
earning power of the two systems.
William NICK. Clayton. chairman
of the committee on utilities OF the
Federation of Citizens Associations
also voiced his approval of the bill al
adopted by the District committee.
Ready to Report Bill.
The bill which was ordered favor.
ably reported. by the House District
committee yesterday will be formally
reported to the House by Chairman
Focht either today or tomorrow.
Representative Woods of Virginia
democratic member of the committee
and the author of the bill. has sug.
gested to Mr.. Focht that he should
reintroduce it so that the bill viii
bear the name Of the chairman. Mr.
Woods said that the bill had beer
ordered reported by the republican
members of the committee and tina
he thought the bill should have tn,
prestige of carrying a republican,
name when it comes up for action il
the House. He said he was anxious
for remedial legislation to aid in th'
street car situation here.