The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-07-09
BILL
IS CALLED
PEPCOCOl)P
Newman Says Plan Is Joker to
Let w. R. & E. Saddle
Losses on Power Users.

BY MAI. OLIVER p. NEWMAN,
Formerly President, Board OF Com mis-
sioners, District of Columbia.
/ talked today with a number of
members of Congress who wanted
more information about the Woods
bill.
That's the measure before the
District committee of the House,
which is to be voted on by the COM
mittee next Wednesday. 1t repre-
sents what the committee believes,
after several months study of the
traction problem, Is the most import
ant contribution on the, subject, and,
therefore, entitled TO first considera-
ton,
PROVISIONS OF BILL.
Briefly, the bill provides:
1. Authority for the Capital
Traction and the Washington Rail
way and Electric to merge.
2. Reduction of che tax of 4
per cent on gross receipts to 4
tax OF 2 per cent.
3. Imposition OF a tax of so per
cent on net earnings above per
cent, fair value.
4. Relief from payment of the
salaries of crossing policemen By
the street car companies.
5. Relief from payment of hrst
cost OF paving between rails by
the street car companies.
6. Authority for the merger of
the Washington Railway and Elec-
trio and the Potomac Electric
Power Company.
Numbers two, three, four and i've
do not apply unless the two major
street car systems are merged.
six does.
In view of the fact that the two
big systems can't be merged undor
private ownership. for the simple
reason that the Capital Traction
Company doesn't want to, the whole
sixteen pages of verbosity in the
Woods bill narrow down to a bill
that could be written in just six
teen words:
The Washington Railway and
Electric Company and the Potomac
Electric Power Company are au-
thorized to merge
REST Is MEANINGLESS.
All the rest of the Woods bill Is
for. even II IL Is passed
nothing but the consolidation of the
w. r. & r. and the Power Company
will happen under It.
Now, don't be deceived by state
ments that this Is merger" bill,
or a tax" bill. II isn't any such
a thing, for the tax changes can't
happen unless the two car compa-
MES merge frst-and we've had re-
peated demonstrations that they
won't get together.
The Woods bill is simply a bill 10
authorize the merger of the w. r. &
e. and the Pepco--a move that W.
r.. & E! has been trying to make for
many long years. 1t would have
taken in the Pepco long ago II there
had not existed a dehaite law OF
Congress- prohibiting that very
thing, and passed to prevent Just
what w. r. q e. wants to do-uss
profits from the lighting company TO
make up losses on the car company.
In other words, to make the users of
electricity pay profts on a street car
system which, because OF bad past
management, exploitation, extrava'
gance, waste and bad iocation OF
lines cannot support itsslf In hard
times.
Today the holders Of the watered
stock OF the Washington Railway and
Company are bearing thos"
losses-th. owners or the property,
Just as the owners of factories. mills,
stores and farms are bearing the
losses incident to hard times.
BY passage OF the Woods bill, and
taking in Of the Pepco, the owners
OF the street car property hope to
transfer those losses to the consum-
ers of electric current.
That's the reason they are so de-
termined to get Pepco-to shift
street car losses from their own
shoulders to the public.
This is the primary Joker in the
Woods bill. but there are others.
pointed out some OF them yesterday.
Today I will show you another.
Take section 1. which authorizes
the merger OF the two big street car
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