The Washington herald., 1921-08-19
Believes Companies I'm
able to Spurn Opening
Now Offered.
WOODS BILL GAINS
COMMITTEE FAVOR
Says Congress Will Take
Hand if Officials Fail
To Act.

There must be merger OF the
Washington Railway and Electric
Company. the Potomac Electric
Power Company and the Capital
Traction Company or each one Of
these corporations must stand on its
own bottom"
Representative BENJAMIN F. Focht
spoke thus yesterday after the
House District Committee had ia
vorably reported the Woods street
car bill. This allows the three corr
porations the choice Of either con-
solidating by July I. 1922, or being
forced TO operate the two street
car lines under different rates Of
fare TO be determined by their in
dividual fair valuations.
IN the event that the street car
companies refuse to recognize the
obvious necessity Of q merger and
take no steps toward this end. i
feel reasonably safe in saying that
Congress will find some way to force
a consolidation" Focht said.
Original Bin Revised.
The Woods bill. In its original
form, permitted the merger of the
Washington Railway and Electric
Company with the Potomac Elee-
tric Power Company. 1t also pro-
vided for the inclusion of the Capi.
tai Traction Company should that
care to Join the COM
bine. Should the Washington Rail-
way and Electric Company merge
with the Potomac Electric Power
or with the Capital Trac-
ton Company, the bill proposed to
repeal the 4 per cent gross tax now
paid by the companies, the payment
Of crossing police and part of the
paving expense, taxing the railway
80 per cent OF their net
after allowing them to
earn per cent return on their
fair valuations.
After being amended and revised
the act.ds now In the form. OF an
to the three companies
to consolidate before July l. 1929.
or be considered separate. distinct
and Individual corporations in the
OF rates. which, to
comply with the amendment offered
by Representative Frederick n.
Zihlman and accepted by the COM
mittee, must be based on the fair
valuation of each company.
Rail Merger First.
The Washington Railway and
Electric Company is denied the priv
ilege of merging with the Potomac
Power Company until IL has
effected a consolidation with the
Capital Traction Company. and not
until the merger of the street car
has taken place will they
be permitted to enjoy the benefits
of tax revision provided in the meas
ure.
One other important amendment
which was passed after a heated
argument between Representative
H. Hammer. of North Caro-
lima, for and Representative James
P. Woods, of Virginia. against the
amendment provides that it shall be
the duty of the public utilities COR
poration created by the merger, to
keep it's books. records and accounts
of the cost, expense and operation
of its power plants and the distri-
button of its products separate and
Inc opCEdIlOu VI IIS
street railways and shall install and
use a system OF bookkeeping fur
nished and provided by the Public
Utilities Commission at its own ex-
pense.
Move BY Walters.
A motion made by Representa-
tive Walters, of Pennsylvania, to
the Keller municipal own
ership bill for the Woods bill was
defeated by a ote OF 8 to 6.
Representatie Millspaugh. of
Missouri, offered objection to the
Zihlman amendment on the ground
that 1t was unfair to the Washing
ton Railway and Electric Company
He argued that a reduction of the
fares Of the Capital Traction Com
pany would deprive the Washington
Railway and Electric Company of
much OF their patronage. ZihlmaL
in defending his measure admitted
that under the provisions of his
the conditions would
be perhaps, as outlined by
but these conditions
unsatisfactory to both
the street car companies and the
public would force the street car
1af