The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-07-08
W..R. & {. HASOWN
BILL IN HOUSE ON
TRACTION PROBLEM
CONTINUED from First Page.)

rust
the paving between their rails and
two feet outside.
The Woods bill repeats these re-
quirements, and puts the cost OF paw
ing on the District government, leav-
ing the companies, however. to bear
the maintenance expense. 1t also sub
stitutes a tax on net earnings for the
tax on gross receipts.
And now we come to another Joker.
Section s provides that the freedom
from paying for crossing policemen
and for paving, and from paying the
gross receipts tax OF per cent shall
be granted ONLY If and when the
Capital Traction and the Washington
Railway and Electric merge.
But no such condition is applied 10
Secnon 2. which is the real. den
mite thing the bill would accomplish
and which reads, in its essential
parts, as follows:
"sec. =. That EITHER the said
Washington Railway and Electric
Company or the .nid merged corpora
ton provided for In Sec. 1 (Which nu.
thortzes the merger Of the two princt.
pal street ear system-) is hereby nu-
thoriEed and empowered 10 acquire.
hold, manage and operate the
ONE WORD DOES 1T.
That's the very thing the Wash
ington Railway and Electric has been
trying to do for years, and 1t is the
thing which 1t has always been
specifically and definitely prohibited
from doing by lava law enacted 10
prevent the very thing which the
Woods bill would permit-and all by
the use of that word EITHER"
Bear in mind that the relief from
taxation, from paying for crossing
policemen and from paying for paw
ing is made conditional on the
merger OF the Capital Traction and
the Washington. Railway and Elec-
trio, and then read that Section y
over again carefully
1t says that EITHER the Washing.
ton Railway and Electric or the
merged corporation may take over
the power company. but this au-
thorizstion, unlike that pertaining to
crossing policemen. paving and taxes,
is not conditional on a merger OF the
two big car companies. Under that
provision the mGger OF the w. X. &
E.. with the power company would be
accomplished so quick it would make
you dizzy.
ANOTHER JOKER FOUND.
But that isn't the last joker. Here's
another, more insidious and menacing
than any of the others. Read il care
fully, still remembering those words
either" and "or."
"sec. 3.-Thnt upon the compile
ton of the transfer of the works.
property, rights, privileges and
franchises of the Potomac Electric
Power Company to the snid Wash
ington Railway and Electric Com
papy or the said merged or con-
soiidated corporation under the pro-
visions OF Section 2 hereof, the said
Washington Railway and Electric
Company said merged or con-
soiidnted corporation shall be en-
titled to a reasonable return at all
times on the fair value Of
the property Of the consoIid a ted
corporation used and useful for
street railway AND electric power
operation within the District of
Columbia 80
That capital AND" Is my own
capitalization, for that's the Joker.
For this reason:
The Washington Railway and
Electric can't pay dividends now on
it's fair value because II doesn't
make money enough. The power
company is highly prosperous.
Under the above authority the w.
r. & f. and the power company, II
consolidated as one concern, would
be given authority by law OF Con.
gress to earn return on the fair
value OF BOTH considered as one
property, which would throw open
the door to high electric light rates
levied to make up street car LOSES
the very thing that IL now pre-
vented by law.
Remember, the House District
Committee, hasn't approved all these
things. Many of It's members may
not know they are there, but Il
HAS advanced this bill to nrst posi-
ton, as the FIRST thing to be
taken up in the search for street
car relief
What the Committee does next
Wednesday will be worth Watching.