The Washington times., 1921-07-04
NEWMAN EXPLAINS
NINE WAYS OPEN
TO CAUSE MERGER
CONTINUED from First Page)

car companies together Il is only a
polite request. please. nice gentle
men, do this IL il suits your pleasure.
Number Four and Number Five are
closely related. Each proposes to
change the present law taxing gross
receipts (the same rate against each
company to tax, also at the same
rate against each. but levied on net
earnings instead Of total cash col
lected. The proponents OF this idea
say this would produce substantial
sum in taxation from the Capital
Traction but practically nothing from
the Washington Railway and Electric.
because the latter hasn't got ary net
earnings. It would relieve the Wash
ington Railway and Electric Of pay
ment to the Government ~ aoout Il
million a year. and make II possible
to reduce fares on both lines on the
same basis.
BENEFICIAL SUGGESTION.
This is the most beneficial sugses-
ton, so far as street car riders are
concerned, that we nave discussed thus
far in the list OF ntne solutinrs-"as-
suming. OF course, that there Is no Oh
lection to increasing the tax on gem
eral property throughout the District
to make UP the loss OF a million in
District revenues. AS n scheme u pro
duce a merger. howtv.c', II is wholly
Ineffective, and az a single system
whether under private or public
ownership Is the only ultimate solu-
tion, tho tax change idee must be con-
sidered as a temporary expedient,
The big difference between number
four and numbr Ave is that the lat
ter provides that the change in tax
alton won't happen unless the COM
panies merge, and as there seems
little likelihood OF merger under pri-
vate ownership. number Ave cannot
be counted upon as solution 10
bring relief TO car riders
Number six Is the drastic idea OF
abolishing the public utilities COM
mission-a step backward which no
community has yet taken. Whatever
ones opinion may be as To the work
OF this particular commission here,
II Is too soon to 60 the violent length
Of abolishing II. Because Of war con-
ditions II has not had an opportunity
to demonstrate its usefulness effec-
lively. but unless the whole theory
OF regulation Of public utilities
throughout the country is wrong.
probably II will give II chance
Number seven Is also a backward
step--the fixing Of rates by Congress.
That system didn't work we'll over a
long period of years. and there is no
reason to believe It will work we'll
now.
Number has lot OF plausible
merit. Under II the Capital Trac-
tion charge for a ride would be less
than the Washington Railway and
Electric. because II has a more pros
porous territory and lower operating
costs in proportion TO It's income.
RESULTS OF 2 FARES.
Nobody knows exactly what would
happen under such an arrangement.
Here are two things which seem
pretty certain:
I. The further swamping OF the
Capital Traction lines with passen-
gers, to the Inconvenience and dis
comfort of the people who ride on
them now and to the additional peo-
pie who would ride on them IL their
fares we're lower than the other
company.
O. The possible bankruptcy OF the
Washington Railway and Electric.
from loss OF revenue.
Each OF these things Is so serious
that the Numher s remedy should
not he applied until all other reason
ndu Deen exhausted, even
though there is a good deal OF abb
stract justice in ne theory that, II
the Capital Traction can carry people
cheaper II should do so. and IL the
Washington Railway and Electric
can't stand the competition. it ought
to go by the board
Number nine remedy has none Of
the objections easily pointed out
md admitted--thet pertain to the
preceding eight. II Is perfectly
simple:
Let the Government. which is re-
sponsible for everything in Wash
ington, take over these properties. |
which have failed. under private
ownership. to give the people neces-
eary service at a reasonably low rate.
effect the economies incident TO con.
rolidation, and run the combined sys-
/ EN-, not for profit. but as a Govern |
utility absolutely essential u |
the functioning OF the National Gov |
ernment.
What do you think!