The Washington herald., 1921-04-05
STREET CAR LINE
MERGER RECEIVES
FAVOR AT HEARING
coxr1N1rrn rRoM PAGE one,

CONTINUED FROM PAGE ONE.
washington paw about 100000
Q cent instead Of Scent fares, be-
cause of the extra charges for trans
fers, and that some Of them are
forced to pay two fares in crossing
the city, making Is cents.
Hams Viewpoint.
President Ham, of the Washing
ton Railway and Electric Company,
declared his company wanted only
reasonable return on a fair valua-.
ton. He urged the merger of the
Potomac Electric and Power Com
pany with the Washington Railway
and Electric. of which II is sub
sidiary. declaring this step would
help the financial methods of the two
companies, and a 10-cent rate for
power would be justified IL the pub
lie could be saved sS76.0o0 a year
in carfare by the car merger, he
declared. He favored a coming sys-
tenn of carfare, to enable the car
company to earn more on its long
hauls. higher power rates, and
change in the methods of taxing, by
which his company would be re-
lieved of the expense of paying for
traffic policemen at crossings. The
removal of these burdens, he dc.
clared, would go far toward rcduc-
ing carfare.
Senator Ball asked the Capitol
Traction Company Official II the
merger between the Washington
Railway and Electric and the power
company would hasten the possi-
bilities of an agreement betNfsen the
traction companies, and was in
formed that no merger hardly would
be possible without it included the
power company.
Joint Conmittees.
The plan of a joint committee of
the car companies and District board
out the differences was
suggested by Capt. Oyster. of the
District Commission. who questioned
President Ham, of the Washington
and Electric, on the pos
sible fare reduction. He thought it
better that the users of electricity,
of whom there are only $1,000. pay
a little more for lights IL the patrons
of the car companies, of whom there
are many millions annually, could
receive the benefits of a reduction
in carfare. He said the Commits
sioners had continued the present
rate of fare for Ave months to give
Congress q chance to act upon the
proposed merger.
The Commissioners favor the plan
of taxing excess profits to equalize
the prosperity of the two compa-
nies. 1t was explained at the hear
ing. The so-cslled Woods bill
would abolish the present tax Of
4 per cent on the gross receipts of
both street railway companies and
substitute q tax of so per cent Of
net earnings in excess Of s per
cent return on the value of the
property.
Rate Of Tax.
Since the W. r. & z. does not
earn more than s per cent on its
value as ascertained by the Utilities
Commission, il would have no ex-
cess profits tax to pay. Tho Capi-
tai Traction. which earns more than
10 per cent on its valuation, would
pay half of all It's earnings in ex-
cess of per cent. After the merger
the tax would be abolished and the
present tax, OF per cent of gross
receipts would be restored TO the
consolidated companies.
The suggestion OF merging the
washington Gas Company and the
Georgetown Gas Company was
made by Col. w. C. Kutz. Engi.
neer Commissioner. The washing.
ton Company. he said. owns all Of
the stock of the Georgetown Com
pany, and It is merely q fiction of
law that the two companies are
separate.