Evening star., 1921-06-16
MUNICIPAL OWNING
OF TRACTION LINES
FAVORED
Sentiment Expressed at
Meeting of House Subcom-
mittee on Legislation.
ACTION ON PROPOSITIONS
DELAYED TILL NEXT week
Plan for Abolition of Public Utili.
ties Act Also Gains Ground.
Zihlman Asks Statements.

Strong sentiment was expressed at
the meeting of the special subcom-
mittee of the House District COM
mittee on street railway legislation
today in favor of reporting favorably
TO the full committee the Keller bill.
providing for municipal ownership Of
the two street car lines. and the Ham,
mer resolution. to repeal the present
public utilities act and abolish the
Public Utilities Commission.
The subcommittee had expected to
reach decision today. but voted to
postpone action until Friday of next
week because Representative Sproui
OF Illinois said he wished to study
the hearings more carefully.
The support Of the Hammer resolu-
ton to abolish the public utilities
commission was based on two
grounds:
"One. that the commission has sub
stituted its own Interpretation and
ideas for the law as written. by bas-
ing the fair return upon the joint fair
valuation OF both companies instead
Of upon each one individually.
Two. that even il the commission
was right in this Interpretation. fg-
ures supplied by the commission to
Chairman Zihlman of the subcommit-
tee show that, considering the joint
fair valuation, a 7-cent fare would
net return of 6.04 per cent whereas
the commission is still maintaining
an Scent fare
Chairman Asks Statements.
Because SO many divergent and con-
flicting opinions have been expressed.
Chairman Zihlman suggested today
that each member of the subcommit-
tee make brief statement regarding
what he thinks would be the best
course to pursue to bring relief. This
was done.
Representative Zihlman said that
according to figures based on fair
valuation by the Public Utilities Com
mission, IL the two companies were
merged It would Immediately result
in straight 7-cent fare with a net
return of 6.04 per cent.
companies by repeating the per
cent gross tax. removing the charge
for crossing policemen and removing
40 to SO per cent charged for paw
ing, IT VIII mean loss to the people
OF 100000 a year and makes possi-
BILE a reduction of almost another
cent in street car fares" Mr.. Zihlman
said. He also advocated q separate
Public Utilities Commission and tho
office of peoples csunsel
In regard to the abolition Of the
Public Utilities Commission. he said
that such an agency is the accepted
modern way OF dealing with public
utilities, and advised that any prop-
osition to abolish the commission
would not get far.
Believes Concessions Basis,
Representative Zihlman said he be-
iieved that the concessions he pro-
posed would provide a basis on which
the companies could come together
this is not done ;le said he would
favor putting in force the provision
of the public utilities act whicil
would give different rate of fare to
each company. He said that the pres.
ent situation is unfair because more
than one-half of the street car
patrons are obliged to pay more than
| . cents extra in fare to keep up
the finances of the weaker company.
Representative Keller of Minnesota,
who is not a member of the SUBJ
committee, but is author of the
! man Zihlman if he did not believe
that the Public Utilities Commission
was not doing it's duty, in substitut-
ing its own opinion for law. Repre-
! sentative Zihlman said that he be-
lieved the commission was doing its
duty according to its light and that
the law is ambiguous because !, pro-
vides that the rate fixed shall not be
discriminatory
In reply to a question from Repre-
sentative Hammer, he said he did not
believe the District Commissioners
can find time properly to perform the
duties of the Public Utilities Commits
sion. In reply to a question from Rep
resentative Keller. as to whether the
Hammer resolution. would not solve
the problem. Representative Zihlman
said that the scent fare provided in
the charters Of the companies would
be confiscatory. Asked il this would
not bring the companies together. Mr..
Zihlman said that it would force en-
tanglements in the courts.
Sees Relief in Lower Taxes.
Representative Kunz Of Illinois ar
gued that the proposed relief in taxes
and other charges would take the bur-
den off the street car company and
place it on the government and people
Of the District. He thought Mr.. Zihl-
mans proposition was to pass lcgis-
lation that would please the railway
interests so that they would merge.
He pointed out that this had been tried
for a long time. The Public Utilities
Commission hasn't devoted the time it
should to traction matters, he said.
He blamed the commission for Its AL
legged misinterpretation Of the law.
| and charged it with having done great
| injustice to all the people. The public
utilities act should be repealed, he
| said. and then the law would come
| lContinued on Page 2, Column L.